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. 

Student organizations need to have a dedicated bank account. It is critical that organization expenses and the personal expenses of members or officers never mix.

Advisors cannot have bank accounts created in their name, per the following policies:
TSUS Rules and Regulations §6.2 
UPPS No. 03.01.10 

To ensure financial transparency and protect your funds, your organization is responsible for practicing these financial safety steps:

• Create a budget with regular reconciliation tracking.
• Create a purchase approval form that answers the 5 Ws (Who, What, Where, When, and Why).

*Notice: Misappropriating or stealing organization funds is strictly prohibited and subject to university disciplinary action and criminal prosecution by law enforcement.

Per university policy, faculty and staff advisors are strictly prohibited from having fiscal control, signature authority, or check-writing access to a student organization's private bank account.

To help ensure your organization remains financially successful and transparent, advisors are expected to:

• Collaborate on Guidelines: Work together with student leaders to establish clear spending rules and tracking methods.
• Support the Treasurer: Spend time regularly reviewing financial records with the organization’s treasurer to ensure accurate record-keeping.
• Provide Oversight: Help identify accounting mistakes early and guide the team through corrective steps when necessary.

Policy References

• TSUS Rules and Regulations, Chapter VI, Section 6.2
• UPPS No. 03.01.10 - Student Organization Accounting System

When leadership changes or an organization closes, use these steps to keep your accounts secure and compliant:

• Hand Over the Books: Maintain a clear training or orientation handbook for incoming treasurers. Update it regularly and pass it along during officer transitions.
• Update Account Access: Remove outgoing officers from all bank accounts immediately after their term ends.
• Require Dual Signers: Always list at least two current officers (ideally the President and Treasurer) on your bank account so the organization doesn't lose access if someone leaves unexpectedly.
• Have a Dissolution Plan: Ensure your organization's constitution explicitly outlines how remaining funds and assets will be distributed if the group dissolves. All members should understand this policy and know how to execute it.

• 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.