| Tax and Legal Compliance |
Reporting handled through University department. |
Organization is taxable unless it has formally applied to the IRS for tax-exempt status. |
| All University exemptions and tax benefits available to the campus life student group (such as non profit and tax exempt status). |
Must register with state and file annual returns independently from the University if group has more than $25,000 income. |
| If currently incorporated, need to dissolve entity and re-file final returns. |
Must handle compliance matters independently from University. |
| Liability Insurance |
Covered by University. |
If desired, need to purchase general liability insurance and possibly other forms of insurance, such as workers compensation insurance. |
| Requires formal use agreement with University Real Estate for most use of University space. The formal use agreement not required for Student Union spaces. |
| Employees |
Employees are University Employees. |
Purchase or contract payroll services from an external vendor; entity responsible for timely and accurate payroll reporting to IRS. |
| Utilize University payroll system and reporting infrastructure, no independent withholding and reporting responsibilities. |
No student FICA exemption; independent benefits programs; may purchase University Services. |
| Student FICA exemption eligibility, employment benefit programs available. |
| Payment to Vendors |
Can use University disbursement function to create payments to vendors; small vendors paid within 3 days. |
Organization would pay vendor from independent bank account; retain own check register. |
| University purchasing card may be available to facilitate purchasing process. |
Organization subject to sales tax on purchases. |
| Exemption from sales tax on University purchases. |
| General Financial Management |
Student group must have all financial transactions recorded in University's financial system; no external checking account allowed. |
Separate general ledger for organization required. |
| No independent financial statement compilation and/or independent audit requirements. |
Independent financial statement and, possibly independent audit requirements. |
| Department assumes liability for all student group activities and finances (debts). |
Not allowed to utilize University’s financial system. |
| Other |
Must be affiliated with a University department and have a faculty or staff advisor that has an on-going relationship with the group. |
No advisor required, but encouraged. |
| Allowed to represent themselves as conducting official University business. |
Not allowed to represent themselves as conducting official University business or as a unit or agents of the University. |
| Not allowed to use University letterhead, stationary, or the University wordmark (in print, clothing, email, websites, or as part of their name). |
