Your chapter is a component of the national organization, but it operates independently and must manage its own business affairs including updating bylaws, managing and reporting finances and filing taxes with the IRS. This section provides information and templates to assist you in managing an effective chapter.
Chapter Constitution and Bylaws
All chapters are required to have a current set of constitution and bylaws. ASDA has a template that chapters can use as a reference. All updated versions should be sent to the Membership Department in ASDA’s national office.
Affiliation Agreements
All chapters are required to have a signed copy of their affiliation agreement on file with the ASDA national office.
IRS Exempt Status
Your chapter may be required to file tax forms with the IRS. Filing for group exemption with ASDA is the easiest way for chapters to obtain tax-exempt status from the federal government, exempting them from paying federal income tax on certain activity. If your chapter is not part of the group exemption but would like to be, please reach out to ASDA’s finance department for information.
Review a list of chapters under ASDA’s group exemption to see if your chapter is listed.
Important IRS filing information
ASDA chapters that are part of the group exemption have tax exempt status with the Internal Revenue Service (IRS) under the IRC 501(c)6. The IRS requires that your chapter submit a Form 990 by May 15 every year. By February 28 each year, information will be sent to the chapter president and vice president as well as treasurers of the participating chapters explaining the process for filing the 990 for the previous calendar year. It is imperative your chapter keep detailed records of all income and expense transactions.
If your chapter has $50,000 or less in annual deposits for the previous calendar year, Form 990-N will need to be filed with the IRS.
If your chapter has more than $50,000 in annual deposits for the previous calendar year, Form 990-EZ will need to be filed with IRS.
These rules apply to all chapters — and all exempt organizations — whether or not they are part of a group exemption. The group exemption only grants tax-exempt status on a group basis. It does not in any way change the IRS filing requirements for chapters. Contact ASDA’s finance department with questions.
Chapter Bank Account
If your chapter collects money for chapter dues, fundraisers or sponsors and incurs expenses, the chapter can consider opening a bank account. To open a bank account, you will need a Federal tax ID number, also known as an EIN or TIN. Please contact ASDA’s finance department for information prior to opening a chapter bank account.
Chapters should check with their school administration to confirm that opening a bank account is permissible.
Chapter funds should never be kept in a student’s personal bank account.
Direct Deposit
ASDA offers chapters the opportunity to sign up for direct deposit for their local dues and incentive payments from ASDA. Chapters may also request for ASDA to withdraw funds from the chapter account to pay for national dues and registration fees. To participate, an ACH form and copy of a voided check must be sent to the ASDA finance DropBox account.
Sample Budget Spreadsheets
It is important for your chapter to track your annual revenues and expenses. Below are sample spreadsheets to use as templates: