BEST PRACTICES - FINANCES
Scholarship funds should be maintained separately from operating funds. Donations to a 501(c)(4) are generally not tax deductible but donations to the club or society’s scholarship fund are tax deductible if those accounts are maintained through the development office at Ohio State. Donors should designate the scholarship name or fund number on the memo line. E-mail holmes@ohiostatealumni.org for your fund number.
Prepare a budget for each significant event or activity to keep track of funds used and any profits made from each individual event.
Utilize www.nonprofitbasics.org, a Web site offering advice on efficiently running your non-profit group. The site contains information on maintaining financial stability for your 501(c)(4) organization.
Invest in financial software such as Quicken or Microsoft Money to effectively manage your group’s budget. If these products are new to you, utilize the software’s step-by-step tutorials.
Your group should take time to shop around for a bank that suits your needs. Consider banking fees, minimum balances, interest, overdraft protection, convenience, and the bank's reputation when making your decision. Be sure to find an FDIC-insured institution.
Do you have another financial best practice? E-mail it to mcbride@ohiostatealumni.org for inclusion on this page.
