Chapter Bank Accounts

Your Chapter should follow all university guidelines when creating a bank account. If your Chapter needs to create a Chapter bank account outside of your university, please be aware that your Chapter will need to follow the tax requirements [filing a 990-N] as explained below.

Steps to Create your Chapter Bank Account

Your university’s RSO office will be able to let you know about all the university guidelines you need to follow when creating a Chapter bank account! There are two types of bank accounts Chapters may have:

  • An account through the university, managed by the university
  • An account outside the university, managed by the exec team

If your university does not want student organizations to use an outside bank account, then you should not open an EIN + create a bank account. If this is the case, you do not need to do steps 2-4 below — instead, work with your university to open your Chapter bank account!

  • Connect with other student orgs on campus: Connect with the Treasurers of several other organizations on campus to see how they do their banking. More likely than not, these banks will be familiar with how to set up an RSO bank account!
  • Connect with your university advisor: Ask your Chapter university advisor if there is a bank that the university recommends student groups use near campus.
  • 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.
  • 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.

If you are an established Chapter [this is not your first term on campus], make sure your Chapter does not already have an EIN! To figure this out, email T[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. 
    • Important note: If you are able to open a mailbox on campus with your RSO department, do this prior to opening an EIN. This will ensure if the IRS ever needs to mail you information, the exec teams in future years will be able to receive the information.
  • 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. 
    • Important note: Do NOT use the name “CHAARG” for your EIN name. You should use the format “X CHAARG” or “CHAARG at X”, where X = your university.
  • 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.

Questions on the EIN 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 bank account.
  • Type of bank account to open: Some banks will have you set up a small-business account. Work with the banker to determine which account type is right for you + what your state filing requirements are. 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!

Materials to bring to the bank: 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.
  • Personal 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.

Chapter Tax Requirements

Please note: The information contained here is designed to offer general tax information, but is not a substitute for advice obtained from the Internal Revenue Service or a qualified tax professional. The information shared here is subject to change or further interpretation by the IRS.

How are CHAARG Chapters set up? All CHAARG Chapters are required to operate as non-profit entities. CHAARG Chapters are either considered entities that represent their respective university or independent entities outside of their university [although they are recognized by their university]. About 40% of CHAARG Chapters fall within their university umbrella + use a university system for handling money. The other 60% of CHAARG Chapters should open up their own bank account for handling their money + will need to apply for an EIN. 

EIN Information

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 outside of your university for your 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 to a CHAARG Chapter 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.

Ambassador + Treasurer: How to File Form 990-N

The 990-N form should be filed every single year at the beginning of the year [January] for the previous year [Chapters follow a January-December fiscal year]. Tori will reach out in early January to prompt/remind you to file your Chapter’s 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 2025, the tax year would be 2024.
  • Fiscal year: This is the calendar year — January 1 – December 31.
  • RSO name: Example — The Ohio State University CHAARG or OSU CHAARG  This has to be the same name as the name on your Chapter EIN.
  • RSO mailing address: Typically an address within your student life offices. This has to be the same address as your Chapter EIN.
  • 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 the IRS system + you should be able to file the 990-N online about 6 weeks after calling.

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.

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.

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 filing in 2025, the tax year would be 2024.
  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 with your university.
  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.

The status of your 990-N will be *pending*. Please wait 10 minutes + then refresh your screen. It should then show as “accepted” or “rejected”.

  • Accepted status: Please screenshot the accepted screen + send to [email protected] for our records.
  • Rejected status: If your 990-N was rejected, please contact the IRS + Tori immediately to figure out what happened! 

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 [T[email protected]] for guidance on next steps in reinstating your status.

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 [January 1 – December 31].

Q: What are gross receipts?
A: Money 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]. If your Chapter has other sources of income [for example, fundraising or hosted a formal where members paid for tickets] you would include those amounts in your gross receipts. Your gross receipts DO NOT take out any expenses. Example of gross receipts:

  • January 2024 dues received: $400
  • February 2024 dues received: $600
  • March 2024 dues received: $0
  • April 2024 dues received: $0
  • May 2024 dues received: $0
  • June 2024 dues received: $0
  • July 2024 dues received: $0
  • August 2024 dues received: $600
  • September 2024 dues received: $300
  • October 2024 dues received: $50
  • November 2024 dues received: $0
  • December 2024 dues received: $0
  • Total gross receipts 2024: $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: 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.

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.