Making Smart Financial Decisions A Guide for Student Organizations Kristine Koehler Coordinator, Office of Student Life kristine.koehler@nau.edu

Financial Basics Open and maintain an off-campus bank account Set up a system of checks and balances Have at least two signers Put your advisor’s name on the account Keep good records of your account numbers, locations, and balances

Protect Yourself from Financial Pitfalls DON’T deposit organizational funds in a personal account DON’T use your personal debit or credit card for organizational expenses DON’T keep a lot of cash around DON’T sign any contracts on behalf of the University

Creating a Budget Two types of budgets: annual and event-based Budgets should reflect all expected expenses and income Budgets are a tool for planning and prioritizing club activities Budgets should be realistic Don’t underestimate your expenses Don’t overestimate your income

Sample Annual Budget Expenses expected actual Income T-shirts $175 $350 Account balance Office supplies $30 $25 Member dues $600 $570 Fall event $2700 $2347 ASNAU funds $500 $0 Spring event $1300 $1743 Sponsor-ships $3000 $1000 Marketing $150 $134 Fund-raisers $1500 $375 Total $4355 $4559 $4450 $2295

Sample Event Budget Fall Hayride 2010 Expected Expense Actual Expense Wagon rental $1200 $1075.33 Hay bales $350 $276 Food (hot dogs, smores, cider) $200 $214.97 Decorations $50 $17.50 T-shirts $250 $0 Marketing $37 Total $2050 $1620.80

Managing Your Budget Once you set the budget, keep a close eye on it Assign one person to track expenditures and income Control spending Assess at the end of the year to determine what needs to be changed for next year

Sample Accounting Log Date Description Expense Income Balance 8/30/10 Beginning balance $500 9/15/10 Flyers $20 $480 10/25/10 Candy & supplies for fundraiser $87 $393 10/31/10 Proceeds from Halloween fundraiser $432 $825 11/15/10 Club t-shirts $317 $508 1/23/11 Donation from Joe’s mom $50 $558

Federal Tax ID Number You need this to get paid! Student organizations are not allowed to use the University’s tax ID number Apply online through the IRS This is not the same as having legal non-profit status

Fundraising Apply for funding from ASNAU or STAC Hold a fundraiser on campus Contact local restaurants about fundraisers Get as creative as you want, but there are a few exceptions: Raffles Bake Sales Human Auctions

Sponsorships Contact local or national businesses about sponsoring the group Money In-Kind donations Ask for donations from parents or family members Matching Gifts Donations to the University Foundation can be used as tax write-offs

Questions? kristine.koehler@nau.edu