Student Organization Finance Training

Develop a Budget

Budgeting is an important planning tool and an integral part of program planning.

Simply stated: A budget is a projection of revenue and expenses.

• Revenue: membership dues, fundraising events, donations, and grants.
• Expenses: printing, equipment, postage, travel, national or regional dues, speaker fees, space rental, technical fees, lodging, security costs, etc.
• Provide access to view budget to all members.

Cash Handling

• Minimize cash transactions if possible.
• Create a policy for deposits. Recommend within 48-hours. Money Boxes are available to check-out from the SORC.
• Use PayPal, Venmo, or CashApp for due collection. Easier to document and track. Recommend PayPal so the account can be linked to the organization's email address and bank account.

Keep a Financial Journal

• Recommend maintaining accurate and complete financial records of all receipts and expenditures.
• Records should be available to any member of the organization.
• Financial Journal is a useful way for the treasurer to keep track of detailed expenses, deposits, and earnings.
• Organizational financial records should be retained for a minimum of 2 years.
• All expenses paid by the organization should be substantiated by an original receipt. If receipt is not possible, the responsible member should furnish a signed statement that explains the purpose of the expense.
• All expenses should be approved by the officer/committee responsible.
• The treasurer or financial officer should reconcile the books with the bank statement monthly.
• Prepare a financial statement for the organization's board/officer and members monthly or quarterly.
• Financial statements and records should be reviewed/audited annually by an independent group. This can be a separate committee or the incoming treasurer as long as it's done before they have authorization to expend funds.
• Seal all records in an envelope or box at the time of transfer to the new treasurer/bookkeeper.

Develop Sound Financial Procedures

• Require two signatures on checks and two names listed on the signatory card.
• At least 2 signers should be on the account so it can be monitored by more than one person.
• If the organization chooses to get a debit card, do not use it for cash withdrawals and ensure only the financial officer has access to the card. Talk with your banking representative to work out details of your account.
• It's recommended that all banking transactions are handled through checks or deposit slips for written record.
• Cash withdrawals should be made using withdrawal slips with the bank.
• Attach receipts paid with cash withdrawals to the withdrawal slip.
• Reimbursement should require original receipts.
• In developing budgets, estimate expenses and revenue realistically. Contact vendors to estimate costs.
• Develop a clear mission and goals for your organization. Financial decisions and priorities should relate to them.
• Develop clear written duties and expectations for all officers, especially the treasurer.
• The treasurer should prepare a financial report for the organization monthly/quarterly.
• *Recommendation* Advisor should NOT be on the checking account.

How to Open a Bank Account?

• Student organizations wishing to open a bank account must apply for an Employee Identification Number (EIN). The Federal Tax ID Number or EIN is a number used to identify a business or other organization.
• Organizations should NOT open a checking account using an individual's social security number. If a SSN is used then the financial burden of that account rests with that individual and they become responsible for claiming any interest accrued on that account on their own taxes. They also become responsible for the account if there is a problem with it.

How To Get an EIN?

• Each organization must apply for an EIN (it's like a business SSN) through the IRS. Visit the "Apply for an EIN" website to complete Form SS-4. The EIN will be used to set-up an account at any bank. Step-by-step instructions can be found on our website.

Why Do Student Orgs Need an EIN?

• Recognition by WVU does NOT imply tax-exempt status. Student organizations are NOT allowed to use the University's EIN or non-profit status.
• Student organizations are independent entities responsible for their own finances and establishing and maintaining their tax status with the IRS.
• Student organizations are NOT Federally Tax-Exempt Non-profit groups. Only the federal government can confer charitable status. Filing for charitable status (501(c)(3) status) is a lengthy legal procedure that commits the organization to the rigorous annual reporting procedures required by the IRS.
• Due to the annual reporting requirements and frequent turnover of student leadership, we do not encourage student organizations to file for charitable status.

Fundraising

• All organizations are encouraged to fundraise!
• However, fundraising is not asking multiple departments or offices for money.
• We do not discourage true potential co-sponsorships, but what is a true co-sponsorship? Any outside sponsorships must be reviewed and approved by Brand and Trademark Licensing.
• Fundraisers should be done ethically & responsibly.

SGA Grant Process

The Bureau of Finance is responsible for providing oversight of SGA's budget.

• All recognized student organizations are eligible. *Excluding Departmental & Club Sports organizations.
• Organizations can apply for multiple grants per year. Requests cannot exceed the allotted amount per organization, per year.
• Applications must be submitted 4-weeks in advance. Requests for speaker honorarium must be submitted 8-weeks in advance.
• Advisors should be made aware of any grant applications being submitted.
• Applications open the first-full week of the fall semester.
• Applications will close upon the exhaustion of funds.

What Grants Can Fund

After an application is submitted a meeting with BoF will be held to further discuss the grant and finalize the amount being requested.

• Grants can fund: "Any event hosted... that is open to the entire university, equipment expenses, certain travel expenses for conferences / tournaments... or events hosted in collaboration with another organization" (SGA Bylaws).
• Be proactive & flexible with your funds.

Receiving a Grant

Next Steps!

Complete the Finance Training Confirmation Form for this training to count towards your organization(s) Annual Registration.