Organization Finance and Funding

For your organization to obtain its own banking information separate of any student’s personal information it must be considered its own entity. 

Your organization may not employ anyone, but to be considered its own entity as an organization you must have an EIN.

That site will walk you through the process of submitting an application for an EIN. 

Make sure to keep a record of your EIN somewhere that you can pass from one officer to the next as it is CRUCIAL information for maintaining banking and tax information. 

Does your organization make $5,000 in income in a calendar year? This includes membership dues, fundraisers, or any other forms of income. 

• If yes – Your organization may be required to pay taxes on this income.
• If no – Check the website below for more information to see if your organization is required to file.

Section 501 of the US tax code outlines which types of nonprofit organizations are tax exempt. The section of this code that provides for exemption is section 501(a), which states that organizations are exempt from some federal income taxes if they fall under section 501(c).

This is not a comprehensive list of all tax documents that may be required for your organization. Be sure to familiarize yourself with all the necessary forms. If you have any questions, please contact a tax preparer for clarification. 

The organization should have its own bank account. 
It is important that personal expenses and organization’s expenses never mix. The bank account can never be in the name of the advisor. As per the following policies: 
TSUS Rules and Regulations §6.2 
UPPS No. 03.01.10 

It is a good idea to set up internal controls within your organization to make sure that there are no mistakes in the handling of your organization’s money. 

Create a purchase approval form for your organization. 
The form should detail how much money is being spent, where it is being spent, what it is being spent on, and why those items are being purchased. This gives the organization the opportunity to double-check afterwards and be sure that the money was spent the way that it was supposed to be. 

According to UPPS 03.01.10: Advisors to non-required student organizations that do not have their accounts and financial records kept by the university shall not have control or fiscal responsibility, including but not limited to check-writing authority, of the bank accounts or financial records of such organizations per TSUS Rules and Regulations, Chapter VI, Section 6.2. 

It is recommended that the advisor and leadership of the organization establish guidelines, accountability measures, and applicable strategies to ensure fiscal responsibility. 

It is encouraged that the advisor to spend time working with the organization treasurer, ensure accurate record keeping, and introduce corrective measures when necessary. 

It is encouraged to have a training or orientation handbook ready for incoming treasurers. Update this handbook regularly and ensure that new treasurers receive it during officer transitions.

Upon officer transition ensure that previous officers should be removed any organization accounts after their term. 
It is a recommended to have organization accounts with couple officer’s names (e.g.: treasurer and president) in case an officer needs to leave suddenly. 

Have a plan in place should the organization dissolve. 
The constitution should have a section outlining what to do with organization assets after the dissolution of the organization. Ensure that there is a common understanding of the organization’s policy and know how to execute the plan accordingly. 

• To receive funding, student organizations must be registered and in good standing.
• Funding request must be submitted three (3) weeks in advance of the day of a program to be funded or attendance of a conference.
• Funding per organization in a given fiscal year cannot exceed 10% of the total funding allocated for the Student Organization Support fund in a fiscal year.
• Funding request must be submitted via the funding request for at: Student Organization Funding Application
• Submission of funding applications does not guarantee that the items requested will be funded, even if the same items were funded in previous years.
• Expenditures shall be consistent with established policies and procedures of the University and with local, state, and/or federal laws.
• University departments or student organization advisors cannot be reimbursed per Texas State University System policy.
• Expenditures shall be consistent with general university policy regarding use of physical facilities or use of services.
• Student organization support funding cannot be used as a gift, an award, or be loaned to an individual or group.
• Student organization support funding may not be used to support a candidate for public office, the outcome of legislation, or any group acting as a “front” for groups or individuals participating in information exchange, and/or presentations.
• Monetary or non-monetary donations cannot be accepted at any event funded with student organization support funding.
• Funded events must be marketed/publicized on the Bobcat Organization Hub.

The Student Organization Support Fund committee will send a notification, along with any other instructions, via email to the student organization leadership and their advisor after requests have been reviewed.

Funding for the following items cannot be reimbursed or approved:

• Events/programs that are not open to all Texas State students.
• Alcoholic beverages or receipts that include alcoholic beverages.
• Gratuities (tips)
• State of Texas sales tax
• Gift cards
• Legal fees/fines
• Insurance costs
• Late fees
• Individual/personal certifications or licenses
• Live animals
• Motorized vehicles
• Parking
• Personal items, such as hair products, makeup, prescription medications, etc.
• Postage stamps
• Services provided free of charge by Texas State University faculty, staff, or current student
• Funds for charities, scholarships, awards, or philanthropic efforts

Student organization leaders may appeal a funding decision. The student organization must document their reason for appeal via email within five (5) University business days after the decision. Appeal request must be sent to studentinvolvement@txstate.edu. Appeal requests will be reviewed by the Assistant Vice President for Student Success and Executive Director of Student Involvement and Engagement.