When a Registered Student Organization has grown, its officers may decide to establish funding and budgets beyond what University resources can offer. When this happens, it's a good idea to establish an official group bank account that isn't owned by any one officer.

UW Tacoma does not provide banking services for any student organization. Registered Student organizations that want to create a bank account are encouraged to look at local banks and credit unions.

Where to start

Before an RSO opens a bank account, officers should ask themselves why they need it. This is an important question. While bank accounts provide benefits--such as the ability to raise funds that are independent from first-come first-serve university resources--they also come with their own set of obligations. 

  • Legal: Clubs will need a federal Employer Identification Number (EIN) to create an account. Officers that wish to raise funds for their RSO will need to incorporate with the state as a nonprofit and adhere to requirements for reporting funds. Officers will be legally obligated to ensure the funds are used appropriately.
  • Logistical: As officers approach graduation, they will need to ensure the transfer of account access to the next generation of club officers, or dissolve the account and associated corporation in compliance with state and federal law.
  • Ethical: Officers will need to ensure they are good stewards of the money entrusted to them and restrict spending to purchases that further the organization's members. In addition to abiding by laws against the misuse of funds, officers are ethically obligated to ensure funds are being used for the community's benefit.

Selecting a bank

UW Tacoma and the Center for Student Involvement do not endorse any specific bank for RSO use.

Banks have varying requirements for opening or updating an organization bank account. All banks will require an Employer Identification Number, which you can learn more about in the section of the same name, below. Another common request is a letter of verification from the university. The Center for Student Involvement can provide a letter of verification for your organization that confirms registration and the current list of officers. This letter can be used to open an account or update signature authorization on an existing account. Please contact the Assistant Director for Student Involvement, Daniel Nash at nashd@uw.edu to request this letter.

Depending on the purpose of your account and the bank's policy, you may be required to provide additional documentation, such as a club constitution, meeting minutes, or proof of non-profit or not-for-profit incorporation issued by the Washington Secretary of State. 

Tax Identification

An Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is issued by the Internal Revenue Service and is used to identify a business entity or organization. RSOs will be asked to provide an EIN when opening a bank account.

The Center for Student Involvement strongly encourages all RSOs with an EIN to save any documentation from the Internal Revenue Service regarding their EIN and to share that information accordingly among their officers and advisors, especially when officers transition.

You can find the EIN application and related information in the references below. 

The first part of the application is to choose the identity for your group:

  1. Select "View Additional Types, Including Tax-Exempt and Governmental Organizations"
  2. Select the most appropriate category for your organization. Some common choices for school clubs are:
    • Social or Savings Club: "A social club is organized for pleasure, recreation, and other similar non-profitable purposes and substantially all of its activities must be for these purposes."
    • Community of Volunteer Group: "A community or volunteer group is any specialized interest group that comes together to provide volunteer services."
    • Sports Teams (community): "These organizations are comprised of sports teams or clubs primarily participating in live sporting events before a non-paying audience."

Nonprofit status

Nonprofit or not-for-profit status requires being registered with the State of Washington. Additionally, Nonprofits in WA state may also be required to register separately with the Charities Programs if they fundraise from the public. Donations made to an RSO are NOT tax-deductible for the donor under nonprofit status.

RSOs not tax-exempt

RSOs are legally independent and autonomous from the University and therefore do not have access to the University’s tax-exempt status.

References