Your chapter is a component of the national organization, but it operates independently and must manage its own finances. This section provides information and templates to assist you in managing an effective chapter.
Many chapters raise funds through sponsorship of their activities, websites and newsletters. Check out the how-to guides on fundraising and vendor fairs for additional ideas for raising money.
Chapter Constitution and Bylaws
All chapters are required to have a current set of constitution and bylaws. ASDA has a template that chapters can use as a reference. All updated versions should be sent to the Membership Department in ASDA's central office.
All chapters are required to have a signed copy of their affiliation agreement on file with the ASDA central office.
When holding chapter events that hold high risk, such as ski outings, participants should sign a waiver to prevent liability against your ASDA chapter or national ASDA.
Filing for group exemption with ASDA is the easiest way for chapters to obtain tax-exempt status from the federal government. ASDA chapters that have been granted a Group Tax Exemption by the Internal Revenue Service do not have to pay tax on income that is related to its tax exempt purpose. If your chapter is not part of the group exemption but would like to be, please submit the following documents to Director of Finance Ellen Ryan. Chapters who submit the documents by Aug. 30 will be included in the group exemption for the current tax year.
- Affiliation agreement signed by a chapter officer
- Consent form to be included in group exemption
- Form SS-4 is the application for Employer Identification Number. If your chapter does not have a Federal Tax ID number, visit the IRS website for more information.
- Updated copy of your chapter's constitution and bylaws
Important IRS tax forms for chapters
ASDA chapters that are part of the ASDA group exemption have tax exempt status with the Internal Revenue Service (IRS). The IRS requires that your chapter submit a Form 990 by May 15 every year. Letters and authorization forms will be sent to the first and second delegates as well as to treasurers of the participating chapters included in the ASDA group exemption.
- If your chapter has $50,000 or less in annual gross receipts for the previous calendar year, submit Form 990-N. ASDA can complete this form for your chapter, as long as you provide written consent by completing the authorization form that will be sent to you in March. The deadline to return your completed authorization form to ASDA is April 15.
- If your chapter has more than $50,000 in annual gross receipts for the previous calendar year, your chapter must submit Form 990 or 990-EZ to the IRS. Your chapter is responsible for completing these forms on its own.
These rules apply to all chapters — and all exempt organizations — whether or not they are part of a group exemption. The group exemption only granted tax-exempt status on a group basis. It does not in any way change the IRS filing requirements for chapters. Questions? Contact Ellen Ryan, director of finance and administration.
Chapter Bank Account
If your chapter collects money for chapter dues, fundraisers or sponsors and incurs expenses, the chapter should consider opening a bank account. To open a bank account, you will need a Federal tax ID number, also known as an EIN or TIN. See Form SS-4 to obtain this number. The bank will provide a form for authorized signatures for the account. It is best practice that two signatures be required. The signers are typically delegates, the treasurer or a chapter advisor.
Chapters should check with their school administration to confirm that opening a bank account is permissible.
Chapter funds should never be kept in a student’s personal bank account.
ASDA offers chapters the opportunity to sign up for direct deposit for their local dues and incentive payments from ASDA. To participate, an ACH form
and copy of a voided check must be sent to the ASDA finance DropBox account
. Chapters may also request for ASDA to withdraw funds from the chapter account to pay for national dues and registration fees. To participate, submit this authorization form
to the ASDA finance DropBox account
Sample Budget Spreadsheets
It is important for your chapter to track your annual revenues and expenses. There are sample spreadsheets to use as templates: