For Registered and Affiliated Student Organizations
Setting up a bank account for your Recognized Student Organization (RSO) is a smart move. A bank account allows payments to be directed to your RSO instead of an individual, avoiding financial mismanagement and giving a professional appearance to potential donors.
RSOs under the Registered and Affiliated classifications are not officially recognized as part of the University of Utah, meaning they cannot conduct financial transactions through a University bank account or use the University’s tax ID number. These RSOs are recommended to establish a non-university bank account in order to conduct financial transactions.
What You’ll Need (Non-University Bank Account)
- Employer Identification Number (EIN)
- Doing Business As (DBA) certificate (also known as fictitious or trade name certificate)
- Government-issued ID of the person(s) opening the account
- Funds for the initial deposit
- Constitution/bylaws of your RSO
How to Create a Non-University Bank Account (Registered or Affiliated RSOs)
- Obtain a DBA certificate under your RSO’s name through the Utah Division of Commerce. RSOs are recommended to file a DBA as a general partnership.
- Complete an SS-4 application through the Internal Revenue Service (IRS) to obtain an EIN.
- In Box 9a (type of entity), select “other nonprofit organization” and specify the type of club in the area provided.
- In Box 16 (principal activity), select “other”.
- Take the following information to a bank of your choosing:
- Copy of your RSO’s DBA certificate
- Copy of your RSO’s EIN
- Personal identification (driver’s license, passport, etc.)
- Funds for the initial opening deposit (contact the bank to inquire about opening deposit minimums)
- Complete the necessary paperwork for your RSO’s bank account. Complete a signature card with the names and signatures of all officers authorized to conduct financial transactions on behalf of the RSO (such as the treasurer, president, vice-president, or secretary).
How to Incorporate and Obtain Nonprofit Status
For RSOs whose annual income exceeds $5,000
What You’ll Need (Incorporation)
- Employer Identification Number (EIN)
- Doing Business As (DBA) certificate (also known as fictitious or trade name certificate)
- Government-issued ID of the person(s) opening the account
- Funds for the initial deposit
- Constitution/bylaws of your RSO
Steps to Incorporate Your RSO
- RSOs must keep their gross receipts under $5,000 per year or must incorporate and apply to the IRS for 501(c)(3) status. If your anticipated annual income is larger than $5,000, you are recommended to incorporate your RSO.
- Draft bylaws for your organization. These documents lay out the structure and purpose of the group, including operating procedures, membership types, and officer titles and duties.
- Using the bylaws, file Articles of Incorporation with a secretary of state. A modest fee is usually associated with this application. The state will respond to establish your organization as an incorporated entity.
- Obtain a new EIN from the IRS using the name that appears on your DBA certificate. Be sure to fill in the purpose of your organization as nonprofit.
- Use your new EIN to open a new bank account specifically for your incorporated nonprofit. You can then begin to pursue nonprofit status with the IRS, usually under the guidance of a nonprofit lawyer.
Notes
- Note 1: Do not file for nonprofit status with the IRS until you have established a checking account record. Showing good record-keeping skills will encourage approval.
- Note 2: Two-signature checks for all payments are strongly recommended.
- Note 3: Obtaining debit/credit cards tied to your non-university account is strongly discouraged.
- Note 4: Organizations generating less than $5,000 in annual revenue have tax-exempt status without filing for 501(c)(3) status.
- Note 5: Incorporated nonprofits are not tax-exempt and must pay annual income tax in the state of Utah. Refer to this guideline for paying taxes as a small business.