Finance Guidelines for Student Clubs/Organizations
In accordance with tax law, the following guidelines have been implemented by the Liberty University Accounting Department as a means to define a student club/organization (club) and classify the nature and purpose of its activities.
- Club Categorization
Clubs are categorized in one of three ways:
- Category 1 – An approved and official Liberty University club who possesses its own tax ID, or who is a local chapter and has the use of a parent organization’s tax ID. This club has multiple funding sources for operations, including, but not limited to, a governing body, such as Student Government Association (SGA) or Student Bar Association (SBA), dues, fund raisers, outside or parent organization donations, etc. This club is a non-related entity of Liberty University and is responsible for its own tax reporting.
- Category 2 – An approved and official Liberty University club whose sole funding source is its governing body. No outside funding sources are allowed, including, but not limited to, fund raisers, outside donations, dues, etc. This club operates as a sponsored activity of its governing body only and does not have a separate account.
- Category 3 – An approved and official Liberty University club who is solely student-run, and has multiple funding sources for operations, including, but not limited to, governing body sponsorship, member dues, fund raisers, outside or parent organization donations, etc. This club is responsible for managing its own account according to University Policy, but tax reporting is handled by the University.
- Next Steps
Once Accounting has determined the appropriate categorization of a club, the following actions will take place:
- Category 1 – A completed W9 form must be submitted to Accounting. Any current balances, as well as future Liberty donations, will be issued to the club by check, via Banner requisition, for off-campus banking.
- Category 2 – All club activities will be funded through petition to the club’s governing body.
- Category 3 – A completed Revenue Generating Activities Questionnaire must be submitted to Accounting for further classification. The club will use the University’s finance tools to maintain their account balances, complete financial transactions (payment requests, deposits, etc.) and is responsible for adhering to all governing body and University policies and procedures.
- Annual Confirmation
Clubs will be re-evaluated each fiscal year to determine the club’s viability and continued existence. Possible changes may include:
- Nature/purpose
- Club category
- Club leadership
- Advisor
Related Documents:
Student Club/Organization Classification Inquiry