Your chapter is a component of the national organization, but it operates independently and must manage its own business affairs including updating bylaws, managing and reporting finances and filing taxes with the IRS. This section provides information and templates to assist you in managing an effective chapter.
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 national office.
Affiliation Agreements
All chapters are required to have a signed copy of their affiliation agreement on file with the ASDA national office.
IRS Exempt Status
Your chapter may be required to file tax forms with the IRS. The easiest way to obtain federal tax-exempt status is to be included under ASDA’s group exemption, which exempts chapters from paying federal income tax on certain activities.
If your chapter is not currently part of ASDA’s group exemption but would like to be, contact ASDA’s finance department for details. You can review the list of chapters covered under ASDA’s group exemption to confirm your chapter’s status.
Important IRS Requirements
Chapters under ASDA’s group exemption are recognized by the IRS as 501(c)(6) tax-exempt organizations.
- Form 990 is due each year by May 15.
- Each February, ASDA sends filing instructions to chapter presidents, vice presidents, and treasurers of participating chapters.
- It’s essential to keep detailed records of all chapter income and expenses throughout the year to accurately file the IRS forms.
Which 990 form to file:
- If your chapter had $50,000 or less in deposits for the prior calendar year → file Form 990-N (e-postcard).
- If your chapter had more than $50,000 in deposits → file Form 990-EZ.
These filing rules apply to all chapters, even those not under the group exemption.
The group exemption only provides tax-exempt status—it does not change filing requirements.
For questions, contact ASDA’s finance department.
Chapter Bank Account
If your chapter collects or spends money for dues, fundraisers, or sponsorships, you may want to open a chapter bank account.
- You’ll need a Federal Tax ID number (EIN/TIN).
- Only chapters that are part of ASDA’s IRS Group Exemption should open a bank account.
- Contact ASDA’s finance department before opening an account.
- Confirm with your school administration that opening an external bank account is allowed.
- Never keep chapter funds in a student’s personal bank account.
Important: If a chapter applies for its own Federal Tax ID number without joining ASDA’s Group Exemption, it may be required to file IRS returns and pay tax on all income. Joining the Group Exemption helps minimize that tax burden.
Direct Deposit
ASDA offers chapters the opportunity to sign up for direct deposit for their local dues and incentive payments from ASDA. Chapters may also request for ASDA to withdraw funds from the chapter account to pay for national dues and registration fees. To participate, an ACH form and copy of a voided check must be sent to the ASDA finance DropBox account.
Sample Budget Spreadsheets
It is important for your chapter to track your annual revenues and expenses. Below are sample spreadsheets to use as templates: