Policy revisions mean big change for clubs

Board Policy 3300, concerning fundraised student funds, has recently raised many questions from clubs and advisers. Aaron Prestwich, interim executive director of student affairs spoke to Student Senate and CAB about the policy this week in order to offer guidance and answer any questions concerning the policy.

The policy states that each college in the Nebraska State College System have structured student organizations and an organized student government. It also goes on to state that each student organization is responsible for maintaining its own bank account outside of the college foundation for funds from student organization fundraising or other activities.

Prestwich said that the main reason that this policy has been put in place is because student accounts are not college funds, and when these funds are held on campus, they can be state-audited.

Prestwich also said that because of Board Policy 3300, each club is required to have an adviser approved through his office.

New advisers are required to fill out a form. Prestwich said that he believes that nearly every professor or staff member who fills out the form to be an adviser will be approved.

Under the finances section of the policy, it is required that every organization becomes responsible for maintaining its own bank account. To establish a bank account in the organizations name, each club needs to get a federal tax id number, Prestwich said. Clubs cannot use Chadron State College id number or a social security number. The account cannot be in the name of one person; it is meant to be the club’s funds.

If a club makes $5,000 or more in fundraising, that club is required to obtain a 501(c)7 organizational status. This requires completing an IRS 1024 form. According to Prestwich, this process can take up to six months; those clubs who do need to apply for a 501(c)7 will be given more time to move their money to an off campus location.

Club advisors cannot have an account in their name, or write checks, Prestwich said. However, the students of an organization can determine which students can have access to the bank account and can also ask for bank statements.

Prestwich also said that each club was required to safely practice cash handling. Logs should be kept and cash and checks should always be locked away, Prestwich said.