Treasurer Resources

The treasurer of the chapter has an array of responsibilities which must be fulfilled for the chapter to be successful and financially stable, ranging from budgeting and collecting dues to paying chapter invoices and applying for financial opportunities. All money coming and going should be monitored and recorded by this position, in addition to overseeing any and all fundraising operations. From dues and invoices to budgeting and donations, the treasurer has the skills to help the chapter maintain long-term financial wellness.

Development of the chapter’s budget by utilization of a previous budget or development of their own, is a primary task of this office. Past budgets or budgeting apps can be great places to start. As treasurer, it’s crucial to pay close attention to the amount of money brought in through chapter revenue such as chapter dues and fundraisers, so when balanced with expenditures such as Active Membership Dues (AMDs) the chapter remains in a financially healthy state.

The treasurer of the chapter has an array of responsibilities which must be fulfilled for the chapter to be successful and financially stable, ranging from budgeting and collecting dues to paying chapter invoices and applying for financial opportunities. All money coming and going should be monitored and recorded by this position, in addition to overseeing any and all fundraising operations. From dues and invoices to budgeting and donations, the treasurer has the skills to help the chapter maintain long-term financial wellness.

EIN Reporting Requirements

The Fraternity has a national EIN (Employer Identification Number), which signifies it is a tax-exempt, nonprofit organization registered with the IRS. Each chapter does need its own EIN in order to be officially registered as a nonprofit entity.

Chapters need to file each year in order to maintain proper status. If a chapter fails to file for three consecutive years, the status will be revoked by the IRS and a re-filing fee must be paid. Any chapters without an EIN are in not good standing with the Fraternity.

The chapter can either have an EIN with the school it is affiliated with, and therefore has no reporting responsibility, or it must file annually via a 990 form.

• Check past years filed
  • OP Dashboard tab and gov shows EIN, year-end and to-file-by dates
  • Year-end date plus five months and 15 days is the filing deadline
• If revoked, chapter must file 1023 with the IRS and pay filing fee
• Determine which officer(s) file and what kind of materials are needed for transition purposes
• File 990N at Annual Electronic Filing Requirement for Small Exempt Organizations — Form 990-N (e-Postcard) | Internal Revenue Service (irs.gov)
• Send filing receipt to [email protected]

Budgeting

• Considerations
  • School support, typically through Student Government or Student Activities Office
  • Conferences, including travel and registration support and possible planning costs
  • Event and activity expenditures
  • Fundraising expenditures and estimated revenue
• Set realistic timelines
  • Officer budget submission
  • Treasurer, president and advisor compilation
  • Chapter review and discussion
  • Chapter vote

Fundraising

• Strongly encouraged to participate in fundraising activities
  • Visibility to campus and community
  • Clear purpose must communicated to chapter & customers
• Diversity of fundraising activities and events

Chapter Dues

• Ensure dues are reasonable
  • From budget, determine if there are additional dues on top of national fees
  • Include dues as topic in exit survey for members who have left the chapter
• Consider alternatives for members struggling to pay
  • Fundraising, scholarships, etc.
• Encouraged reward and/or consequence for not paying dues on time
  • Active status (and the subsequent benefits of maintaining such status)
  • Late fees 

General Safe & Healthy Practices

• Know, understand and follow all school protocols
  • Some schools require chapter officers to attend campus finance meetings, submit budgets or use school checking account
• Officers should thoroughly understand roles
  • Use national and chapter bylaws as starting point
  • Appropriate checks and balances between treasurer, president and advisor(s) to ensure financial information is secured and accounted for
  • Transition should include roles, records of budgets and actuals for future officers, and reporting responsibilities
• Budget should be used for programming
  • Reserves should be substantial enough to cover the chapter in case of an emergency, but not too much that programming is suffering
• Sales tax exemption
  • Chapters may choose to apply for sales tax exemption using their own EIN
  • Application, eligibility and requirements are determined by state

There are five common types of payments collected by the chapter treasurer throughout the year – Pledge Fees, Initiation Fees, Insurance Fees, Active Membership Dues and Chapter Dues. With the exception of chapter dues, the amount for these fees are set by the National Convention and outlined in the National Bylaws. Chapter dues are typically voted on by the chapter and outlined in the chapter bylaws. It is important for the treasurer to review the National Bylaws and Chapter Bylaws to better understand these fees and the timeline for payment.

Dues owed to the chapter above what the Fraternity requires in the National Bylaws are often utilized as funds for chapter programming, regalia and more. Although the portion of dues paid to the chapter may fluctuate depending on bylaws updates or anticipated expenses, dues paid to the Fraternity will only change as a result of legislation passed at National Convention. In addition to Active Membership Dues, the treasurer is responsible for overseeing payment of other fees such as pledge and initiate fees. The National Bylaws indicate chapters are to pay invoices within 10 business days of receipt of an invoice through the Fraternity’s reporting platform, Officer Portal. Check out “Reporting in Officer Portal” on page 10 for more details.

As many financially responsible organizations do, the Fraternity requires chapters to complete a financial review on an annual basis, documenting this review in Officer Portal. A financial review, or audit, looks at the finances from the previous year to look for any inconsistencies. An impartial party, such as a chapter advisor, school administrator or another faculty member can perform this review. If chapter funding is mostly managed by the college or university, it’s advised a chapter treasurer connects with the respective office on campus to learn more about how to best conduct a financial review.

Each year, all chapters or alumni associations must file a 990-N also known as the e-postcard. All chapters must file the e-Postcard by the 15th day of the 5th month from the chapter’s year end if the chapter has gross receipts greater than $50,000. The year-end date as well as the IRS filing date are available in the Dashboard area of the Chapter Officer Portal. It is important that the 990-N be posted on or after the year-end date or else form will be rejected by the IRS. Once the e-postcard is submitted to the IRS, a receipt of the submission will need to be uploaded to the Officer Portal using the IRS Filing Receipt form.

While many duties of a treasurer have a clear and specific process for completion, the need for fundraising and project management permits room for fun and collaboration. Chapter programming doesn’t often operate without the support of chapter funds, so it’s important to connect with program-related officers to determine the financial needs of their program when creating the chapter budget. Since this position has a special awareness to chapter finances and where money is allocated, they can provide answers and guidance for finance-related questions officers may have as they develop programming. For example, a vice president of service or secretary may need to request funds for a service project or advertising expenditure. It is important that the treasurer always keep the members in mind when working with officers to establish the budget and set chapter dues. High chapter dues can have a negative impact on themember and ultimately can lead to membership issues for the chapter due to the costliness of being involved.

Fundraising often lies in the duties of the treasurer as part of chapter programming. In addition to dues, grants and school funding opportunities, fundraising is a way for the chapter to allow their creativity to bring in funds that support chapter programs, conference attendance and future chapter projects. Fundraising is also a useful tool to have extra funds to do something out of the ordinary with the chapter or for members. Many restaurants offer opportunities for benefit nights or profit nights, where organizations get a percentage of that night’s sales, serving the chapter as a low maintenance but fruitful project. Treasurers should also stay up to date with scholarships, grants and other funding available on campus, either from student government or program assistance offices. For more information on additional funding through the campus, ask a faculty advisor and campus administrator for help. As treasurer, take the initiative to find financial opportunities that can positively impact the state of the chapter.

Big things happen when transparency is a priority – especially when it comes to finances. Transparency can be accomplished by providing updates on the chapter budget, allowing more than one responsible officer access to funds and explaining to members what dues and fees are owed and where they are allocated as part of programming or chapter benefits. While the treasurer oversees chapter finances, they should not be the only one with access, the president and advisory chair are two officers who could be included in order to promote transparency. A high level of accountability is maintained when the treasurer operates with other officers and members in mind. If transparency isn’t already practiced, assess how the chapter can improve financial practices to maintain transparency.

Did you know there are funds available for programming such as Youth Service Grants and The Jaimie Conover Stewart Chapter Growth Grants? These grants provide the opportunity for the Fraternity to support and encourage flourishing chapter programs! Applications are available through the Officer Portal under the Forms area.

As treasurer, recognize and coordinate with outside resources to strengthen chapter financial practices. Reach out to campus administrators or faculty members to see if there is someone on staff who is able to look over the chapter’s budget, expenditures, and general processes. Be willing to listen and learn if they offer suggestions about where improvements can be made.

• Understanding National Dues Fees
• Chapter Budget Worksheet Example
• Treasurer Chapter Officer Guide
• Supporting Virtual Operations Appendix – Chapter Officer Guide