1. ICSUAM 3141.01 Administration of Student Organization Funds Discussion
YEAR-END LEGAL ACCOUNTING AND REPORTING TRAINING
ICSUAM Administration of Student Organization Funds Discussion
Lori Redfearn, Assistant Vice Chancellor, Systemwide Advancement, CO
Ray Murillo, Director Student Programs, CO
Kristina Randig, Associate Director Management and Accounting Practices, CO
Bryn Siegel, Systemwide Tax & Legislative Coordinator for the CSU, CO
Del Anderson, Director of Accounting, San Bernardino
Kendal Chaney-Buttleman, University Controller, Sacramento
April 19, 2017

2. How did we get here? Policy Overview Survey of Campuses
April 2017
ICSUAM – Administration of Student Organization Funds – Discussion
Agenda
How did we get here? Policy Overview Survey of Campuses

3. Stakeholder Consultations
April 2017
ICSUAM – Administration of Student Organization Funds – Discussion
How did we get here?
Policy Development
Final Policy
Workgroup
Stakeholder Consultations
Revenue Reporting
Donations & Tax IDs
Off-campus Banking
ICSUAM
Issues

4. April 2017
ICSUAM – Administration of Student Organization Funds – Discussion

5. April 2017
ICSUAM – Administration of Student Organization Funds – Discussion

6. April 2017
ICSUAM – Administration of Student Organization Funds – Discussion

7. April 2017
ICSUAM – Administration of Student Organization Funds – Discussion

8. April 2017
ICSUAM – Administration of Student Organization Funds – Discussion
1. What are the options to the University for the deposit of student organization (SO) funds?
There are 3 options for the deposit of SO funds:
  Option 1: Students bank with the auxiliary organization (AO), auxiliary records the revenue and expenses of the SO in the books of the AO.
Option 2: Students bank with the campus, campus records the revenue and expenses of the SO in the books of campus using CSU fund 496.
Option 3: Students bank with the AO, AO is acting as agent (custodian) for the campus, campus records the revenue and expenses of the SO in the books of the campus.
  Note: There is also the scenario whereby the AO is acting as agent (custodian) for an organization that has their own EIN and 501(c)(3) or 501 (c)(7) designation. For example, chapters of national societies or fraternities/sororities.

9. Campus Statistics as of 3/30/17
April 2017
ICSUAM – Administration of Student Organization Funds – Discussion
Campus Statistics as of 3/30/17

10. Unrelated Business Income Tax (UBIT)
April 2017
ICSUAM – Administration of Student Organization Funds – Discussion
Unrelated Business Income Tax (UBIT)
Student Organization Activities Are Subject to UBIT Step 1 - Determine which method is used, Option 1, 2, or 3 Option 1 - If the SO activity is on the books and records of the AO, then the Campus has no UBIT reporting responsibility. Option 2 or 3 - If the SO activity is on the books and records of the Campus, then the UBIT activity is reported to the CO for inclusion in the consolidated UBIT return. Step 2 - Determine whether the activity is related to the mission of the CSU. Relatedness is assessed through reference to the campus’/auxiliary’s mission, not the purpose of the SO.

11. April 2017
ICSUAM – Administration of Student Organization Funds – Discussion

12. Donation Considerations
April 2017
ICSUAM – Administration of Student Organization Funds – Discussion
Donation Considerations
Is it a gift? Donation must be made to a qualified organization and the fair market value of any goods or services received by the donor reduce the charitable deduction value.
Contributions to social organizations [501 (c)(7)] are generally not tax deductible.
Contribution designated to a student club must be for educational purposes to be tax deductible.
Many student club activities are “proceeds to benefit” efforts: bake sales, t-shirt sales, dance-a-thons, and audience participation fees. They raise funds but are not charitable contributions.
Which EIN applies? Make sure the contribution is directed to the appropriate qualified organization and gift receipting is made by that organization.

13. April 2017
ICSUAM – Administration of Student Organization Funds – Discussion
Charitable donations of $250 or more must be acknowledged in writing by the qualified recipient.
Fundraising events with gross receipts of $5,000 or more must be reported on auxiliary organization IRS 990 Forms.
Raffles and gaming activities have registration requirements with the Attorney General and local law enforcement agencies.
Donor intent must be honored.
Work with Advancement to establish policies and procedures for approving fundraising activities, accepting and receipting gifts, and providing orientations for student organizations.

14. April 2017
ICSUAM – Administration of Student Organization Funds – Discussion

15. Frequently Asked Questions
April 2017
ICSUAM – Administration of Student Organization Funds – Discussion
ICSUAM – Administration of Student Organization Funds – Discussion
Frequently Asked Questions

16. Frequently Asked Questions
April 2017
ICSUAM – Administration of Student Organization Funds – Discussion
ICSUAM – Administration of Student Organization Funds – Discussion
Frequently Asked Questions

17. Frequently Asked Questions
April 2017
ICSUAM – Administration of Student Organization Funds – Discussion
Frequently Asked Questions

18. Frequently Asked Questions
April 2017
ICSUAM – Administration of Student Organization Funds – Discussion
Frequently Asked Questions
Should administrative fees be charged for the cost of administering a SO’s monies?
At no time shall a Student Organization deposit funds into an unauthorized bank account. (Any exceptions to this requirement [e.g., nationally affiliated organizations or local organizations with a separate 501(c)(3) status] must be approved by the campus CFO or designee. The national organization should be able to provide a group exemption letter. What is a group exemption letter?
Who should a campus contact for information concerning liability issues relating to SOs?

19. Frequently Asked Questions
April 2017
ICSUAM – Administration of Student Organization Funds – Discussion
Frequently Asked Questions
10. If a SO either no longer has anyone participating in the club and/or has had no activity, when can the account be closed? Once identified that the account can be closed, how should any remaining balance in the account be treated?

20. April 2017
ICSUAM – Administration of Student Organization Funds – Discussion
Open Forum Discussion