Finances and Taxes

Tax Identification Numbers

Any student group that raises or spends money will need to maintain accounts separate from one individual's accounts. Student organizations that wish to establish a bank account must file a Form SS-4 with the Internal Revenue Service to apply for and receive an Employer Identification Number (EIN). Any financial accounts associated with the organization must be managed under this number. Organizations should not apply for a new EIN each year. Keep records of the EIN with other financial records for continued use.

• Application Process:
  1) Explore the required information and forms on the IRS website. To begin the application, click 'Apply for an EIN Online' in the center of the page.
  2) Read through the online questionnaire instructions. Note that the online questionnaire must be completed in one sitting. To start, click 'Begin Application'.
  3) For application Step 1, 'Identify', select 'View Additional Types, Including Tax-Exempt and Governmental Organizations'. Then choose the definition that most closely matches the purpose of the student organization:
    • Community or Volunteer Group: Any specialized group that comes together to provide volunteer services.
    • Social or Savings Club: A social club is organized for pleasure, recreation, and other similar non-profitable purposes and substantially all of its activities must be for this purpose. Most RSOs qualify as social clubs.
  4) Complete Steps 2-5 accurately.
  5) When the form is completed, a CP-575 confirmation form will be generated with the new EIN. An electronic or hard copy should be retained for completion of tax forms both in the present and in the future.

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Filing Taxes

2021 guidance from the UMN Office of General Counsel recommends that Registered Student Organizations (RSOs) that generate more than $5,000 in income in a year must file taxes with the IRS. If you are unsure whether your organization has filed income taxes before, visit GuideStar by Candid

for information.

The majority of RSOs are eligible to file an abbreviated online tax return, Form 990-N (also known as the ePostcard), which is for organizations that generate less than $5,000. There is no paper form related to the 990-N, only an online submission. Before completing the 990-N, assemble the required information:

• The organization's EIN;
• The tax year (either fiscal or calendar year filer);
• Legal organization name and mailing address;
• Any other names the organization may use;
• Name and address of a principal officer;
• Website address (Bulldog Connect page is acceptable);
• Confirmation that the organization's annual receipts are under $5,000; and
• If applicable, a statement that the organization has terminated or is terminating.

Form 990-N must be filed no later than the fifteenth day of the fifth month after the close of the organization's tax year. The tax year begins in the month when the organization's EIN was originally issued (see below). Once it is filed, Form 990-N is considered public information.

ℹ️  Organizations that have gross receipts of more than $5,000 (or prefer to file hard copies of tax returns) must file Form 990 or Form 990-EZ.

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Internal Revenue Service: Charities and Nonprofits

Internal Revenue Service: Form 990 Overview Course

Minnesota Attorney General's Office: Nonprofit Info

GuideStar by Candid

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Registered Student Organizations may be asked to fill out a W-9 if you are to be paid for goods or services by another organization or company.

• Name: Enter the organization's legal name on the "Name" line and any "doing business as" (DBA) name on the "Business name/disregarded entity name" line.
• Federal Tax Classification: Check the appropriate box that applies to your group.
  ・Unincorporated Association (most groups): Check the Other box and specify "unicorporated association".
  ・Corporate Nonprofits
      ⁃ If your organization has not received federal tax-exempt status, check the Other box and specify "nonprofit corporation".
     ⁃ If your organization has received federal tax-exempt status, check the Other box and specify "Tax-Exempt Organization". Then check the box for Exempt Payee.
  ・In Part I, enter the EIN that you received by filing Form SS-4.
• Sign and date.

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