• Do Not Ask Other CHAARG Leaders: Do not ask other CHAARG Chapters or your RCL/CLC what they did for their Chapter bank account, as different universities tend to partner with different banks
• Connect with Other Orgs on Campus: Connect with the Treasurers of several other organizations on campus to see how they do their banking 
• Chapter University Advisor: Ask your Chapter university advisor if there is a bank that the university recommends
• Research: Do some online research! Oftentimes there will be a Treasurer training from your university that tells you what bank is recommended for student organizations to use

If you are an established Chapter [this is not your first semester/quarter on campus], make sure your Chapter does not already have an EIN! To figure this out, email [email protected], as we have all EIN numbers on file.

Applying for an EIN number for your Chapter is easy + can be done online following these steps:

• 1. Go to the IRS’ Apply for an Employer Identification Number [EIN] Online Website: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
• 2. Click the APPLY ONLINE NOW link at the bottom of the page. 
• 3. Once you have read the instructions on the page, click the Begin Application button. 
• 4. Select the View Additional Types, Including Tax-Exempt and Governmental Organizations option for the “What type of legal structure is applying for an EIN?” question and then click the Continue button. 
• 5. Choose Social or Savings Club. Once your selection is made, click on the Continue button. 
• 6. To confirm your selection click the Continue button. 
• 7. Enter your first name, last name, and SSN/ITIN. While the online SS-4 form requires the individual to enter his/her Social Security Number [SSN], it is still the EIN that is used to open a checking account, not any individual’s SSN. 
• 8. Select whether you are an officer or member of the organization or whether you are applying for the EIN as a third party on behalf of the organization and then click the Continue button. 
• 9. Enter the address information for your organization and click the Continue button when you are done. 
• 10. Enter the requested information about your organization and click the Continue button when you are done. Repeat this step for the next screen requesting additional organizational information. 
• 11. Select the Other option for the question “What does your business or organization do?” and click the Continue button. 
• 12. Select the Organization option for the question regarding your business activity and click the Continue button. 
• 13. From the list of organizational activities select the activity that best describes what your organization does and click the Continue button. 
• 14. Select whether you would like to receive your EIN confirmation letter online or by mail and click the Continue button. 
• 15. Once your receive the information, save the information in your Chapter Google Drive toolbox folder.

Opening a Chapter Bank Account: You will also need a copy of your EIN form to open a Chapter bank account. 

Questions on the EIN Form? Who do you contact if you have questions or have trouble filling out the online form? For assistance you should contact the IRS directly. They can be reached at 1-800-829-4933.

• Make an Appointment: Call + schedule an appointment with the bank. Let them know you are students trying to set up a student organization bank account
• Ask for Filing Requirements: Different states have different filing requirements for their tax-exempt organizations. Depending on your state, you might have to file as a tax-exempt org with the Secretary of State in order to create the account
• Type of Account: Some banks will have you set up as a small-business account. Work with the banker to determine which account type is right for you + what your state filing requirements on
  • This is why you should use a bank that other student organizations use, as the banker will be able to guide you into what works for them

This list is what we typically see is needed by a bank to start the Chapter bank account. Please keep in mind that your bank might have different requirements! 

• Organizing Documents or Articles of Incorporation: This is your Chapter constitution + bylaws! These should be signed by 2 or more members of the exec team
• Identification: Bring your state ID, driver’s license, or passport
• Initial Deposit: Many banks will require an initial deposit between $100-$300. If your Chapter has not had any Chapter dues yet, email [email protected] + she can help you with an advance on your membership dues so you can open the Chapter account
• EIN Issuance Letter. You’ll need this to open the account! Be sure to print it out + bring it in

An EIN is a unique, 9 digit number that is used to identify your Chapter. It’s also known as a tax-identification number. 

• Yes: If your Chapter uses either PayPal or a separate bank account for their money management, then your Chapter either already has or needs an EIN.  The EIN was set up when your Chapter was founded + will not change
• No: If your Chapter has a bank system within your university [for example — if all accounts are housed under a student organization hub + there are no outside bank accounts, then you do not need to apply for a separate Chapter EIN]
• Unsure: We have on file all of our Chapters that operate within their university or that already have an EIN. If you’re not sure, we are here to help! Reach out to [email protected]

CHAARG Chapters are Non-Profit Entities

• All CHAARG Chapters are required to operate as non-profit entities
• CHAARG Chapters qualify for tax exempt recognition from the IRS
• A tax exempt organization is one that is not subject to tax at the federal or state levels
• Section 501(c) of the Internal Revenue Code lists the types of organizations that are recognized by the IRS as tax-exempt. CHAARG Chapters fall in this category as a 501(c)7 organization
• 501(c)7 organizations are organized for pleasure, recreation, + social purposes
• As a 501(c)7 organization, you do not need to file for tax-exempt recognition from the IRS. However, you do have to meet yearly filing requirements

501(c)7 vs 501(c)3

• Please note, as a 501(c)7 you are not a charitable organization (a 501(c)3)
• Organizations that are 501(c)3 have to apply for official recognition from the IRS
• This means that no donations can be used for a tax write off
• If your Chapter is interested in fundraising, you must contact your university + ask for their guidelines on that as universities have different policies

Filing a Yearly 990-N

• Do not Need to File: If your CHAARG Chapter is within your university + does not have an outside bank account [keep in mind — PayPal holding is considered an outside bank account!] then you do not need to file anything additional with the IRS
• Do Need to File: If your CHAARG Chapter has an EIN + is using an outside bank account [or PayPal holding account] then you will need to file a form 990-N every year [by May 15th!] with the IRS to remain operating as a tax exempt organization

Please note that Tori will reach out in early January to prompt/remind you to file your 990-N!

Call the IRS: The Ambassador or Treasurer should call the IRS Tax Exempt Organization division at 877-829-5500 before filing your Form 990-N to ensure your Chapter is in the IRS filing database. When you call, have this information ready: 

• Chapter EIN: Also called your Tax ID Number
• Tax Year: If you’re calling in 2024, the tax year would be 2023
• Fiscal Year: This is the calendar year — January 1 – December 31
• RSO Name: Example: University of Cincinnati CHAARG or UC CHAARG 
  • This has to be the same name as your Chapter EIN 
  • If you do not know what this would be, please contact [email protected] 
• RSO Mailing Address: Typically an address within your student life offices
  • This has to be the same address as your Chapter EIN
  • If you do not know what this would be, please contact [email protected] 
• Name or Address of Principal Officer/Leader: The founding Ambassador or Treasurer may have filed for the EIN. If this is the case, you’ll have to tell them the founding Ambassador or Treasurer name + also let them know that you are the new Ambassador or Treasurer
• Money Received: Confirmation that your gross receipts are less than $5000 
  • Your gross receipts are how much money you received from dues + any other outside fundraisers over the past year
• Necessary Organizing Documents: Your legal organizing documents are your constitution + bylaws. These work as articles of incorporation. You + your Treasurer can sign these so that they are signed
• Subsection of the IRS Code Declaring You’re Tax Exempt:501c7 social club. **Note: you are NOT a 501c3 Charitable Organization

After you’ve given this information, your organization will be verified in their system + you should be able to file the 990-N online. 

Filing The 990-N Online: 

•  Use this guide from the IRS on how to complete Form 990-N [e-Postcard]. It should take 10-15 minutes to complete. 
  • Setting up an Account as a New User:
    • If this is YOUR first time filing a 990-N, then you will need to set up an account
    • You will use your personal information when registering
    • The login ID + password you are creating are for YOUR personal use — to file the organization’s 990-N
    • With your login ID + password, you may file a form 990-N for multiple organizations without the need to register for each organization
    • The login ID + password belong to YOU + not to the organization which you are filing for
  • If You’ve Filed a 990-N Previously: If you have filed a 990-N in the past for other organizations [for example – you filed the 990-N for your Chapter last year or for a different student org you’re involved in], you can [+ should] use the same login

Please note that Tori will reach out in early January to prompt/remind you to file your 990-N!

Use this guide from the IRS on how to complete Form 990-N [e-Postcard]. It should take 10-15 minutes to complete. 

• Setting up an Account as a New User:
  • If this is YOUR first time filing a 990-N, then you will need to set up an account
  • You will use your personal information when registering
  • The login ID + password you are creating are for YOUR personal use — to file the organization’s 990-N
  • With your login ID + password, you may file a form 990-N for multiple organizations without the need to register for each organization
  • The login ID + password belong to YOU + not to the organization which you are filing for
• If You’ve Filed a 990-N Previously: If you have filed a 990-N in the past for other organizations [for example – you filed the 990-N for your Chapter last year or for a different student org you’re involved in], you can [+ should] use the same login

Completing the e-Postcard requires the eight items listed below:

1. EIN: Also known as a Taxpayer Identification Number [TIN]. If you do not know what your Chapter EIN is, please reach out to [email protected] 
2. Tax Year: If you’re calling in 2024, the tax year would be 2023
3. Legal Name + Mailing Address
4. Any Other Names the Organization Uses
5. Name + Address of a Principal Officer: The Ambassador + Treasurer are both principal officers
6. Website Address if the Organization Has One: This would most likely be related to your university/student organization status, such as if you have an OrgSync page or something like that
7. Money Received: Confirmation that your gross receipts are less than $5000
   • Your gross receipts are how much money you received from dues + any other outside fundraisers over the past year
8. If Applicable [Chapter Closure]: a statement that the organization has terminated or is terminating [going out of business]. This is only applicable if your Chapter is closing

Q: When do I file the 990-N for my Chapter?
A: January: The Chapter Ambassador + Treasurer will file the form 990-N together every year. We will encourage Chapters to begin filing this form for the previous year on January 15 of each year. The form must be completed by May 15, however, we ask that you complete it by February 15 [giving you plenty of time to get things right].

Q: What is our fiscal year? 
A: Calendar year:We follow the calendar year for your fiscal year [so January 1 – December 31].

Q: What are gross receipts?
A: Monday Received: Gross Receipts are the total amounts the organization received from all sources during its annual accounting period, without subtracting any costs or expenses. For most Chapters, this is simply however much you’ve received in membership dues during that tax year [note — this is from January 1 – December 31, NOT your school year]. Please note, if your Chapter has other sources of income [for example, fundraising or hosted a formal where members paid for tickets] you would include those in your gross receipts. Your gross receipts DO NOT take out any expenses. Example of Gross Receipts:

• January 2020 Dues Received: $400
• February 2020 Dues Received: $600
• March 2020 Dues Received: $0
• April 2020 Dues Received: $0
• May 2020 Dues Received: $0
• June 2020 Dues Received: $0
• July 2020 Dues Received: $0
• August 2020 Dues Received: $600
• September 2020 Dues Received: $300
• October 2020 Dues Received: $50
• November 2020 Dues Received: $0
• December 2020 Dues Received: $0
• Total Gross Receipts 2020: $1,900

Q: What is our tax exempt sub-section? 
A: 501c7: Section 501 of the tax code outlines which types of non-profit organizations are exempt. Under this section, your organization falls under 501c7 — a social club. Please note: you are NOT a charitable organization (501c3). There is a difference between being a charity (501c3) + a tax-exempt organization such as a social club (501c7).

Q: Is there a parent organization or group filing? 
A: No: There is no parent organization because all CHAARG Chapters are independent, separate entities. CHAARG Nationals is not your parent organization. This is why you must file a 990-N for your Chapter + we cannot do a group filing.

Q: What are my organizing documents or articles of incorporation? 
A: Your Chapter Constitution + Bylaws: The Ambassador + Treasurer can sign these if needed.

Q: Who is an officer of the organization? 
A: All exec team leaders: All exec team leaders are officers of the organization + can speak on behalf of the organization. Please note — you can only speak on behalf of your CHAARG Chapter, not other CHAARG Chapters.

Q: Are we a charity or private foundation? 
A: No: You are neither of these — you are a 501c7 social club. If anything, you would be considered an un-incorporated association as you are a student organization on campus.

You should try filing the Form 990-N as instructed above. If you are informed that your tax exempt status was revoked by the IRS for failure to complete this form, then you should reach out to Tori [[email protected]]  for guidance on next steps in reinstating your status! 

After Filing the 990-N: 

• Status: The status of your 990-N will be *pending*. Please wait 10 minutes + then refresh that screen. It should then show as “accepted” or “rejected”
• Accepted: Please screenshot the accepted screen + send to [email protected] for our records
• Rejected: If your 990-N was rejected, please contact the IRS + Tori immediately to figure out what happened!