Making Smart Financial Decisions

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

2. 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

3. 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

4. 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

5. Sample Annual Budget

6. Sample Event Budget

7. 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

8. Sample Accounting Log

9. 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

10. 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

11. 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

12. Questions? kristine.koehler@nau.edu