HOW DO I...

Become self-supporting?
Each alumni group needs to be financially self-sufficient. You may choose to charge membership dues (separate from the Alumni Association, Inc. dues) to cover your group’s operational expenses. Consider adding a small per-person charge or handling fee to each event to raise operational funds.  Add a donation line to all event materials to assist with scholarship fundraising.

Establish a bank account?
Each group should establish its own checking account. To do this, a volunteer must complete a form called an SS-4, or an Application for an Employer Identification Number. The SS-4 is most conveniently available through the IRS’s Web site or from the hotline 800-829-3676. Once the form is completed, you can mail or fax it to the IRS.  If you have questions about the SS-4 please contact Craig Little at little@ohiostatealumni.org or Allen Hinojosa at hinojosa@ohiostatealumni.org.

Learn more about our 501 (c) (4) tax-exempt status?
501(c)(4) tax status permits certain tax exemptions for the alumni club. These exemptions may not include exemption from your state’s sales tax.  501(c)(4) is the preferred status by the university and the Alumni Association to keep fund-raising centralized inside the university. Being a 501(c)(4) requires a simple informational reporting to the IRS once a year. There is also a more involved reporting process and the Alumni Association can assist you with any necessary preparations.  Please contact Michelle Bernett at bernett@ohiostatealumni.org or 614-292-2288 with any questions.

● What is tax exempt?  The IRS basically defines a tax exempt entity as non-profit (IRS Publication 557). In Ohio a 501(c)(4) organization is not exempt from sales tax.

● As a 501(c)(4) what are we exempt from? Paying taxes on earned income such as interest and dividends.

● What is an EIN? It is a federal Employer Identification Number, issued by the IRS and used by the IRS to identify and keep track of business financial transactions. Unless your group is very new or had minimal activity, it is most likely that you already have your own EIN.

● Do I need my own EIN? Yes, you must have your own EIN.  The societies EIN number is used to open the society bank account.  Societies are not permitted to use the Alumni Associaions' EIN number. 

● Where and how can I get an EIN? First, please check with the Association Finance Office to see if our records show your society already has a EIN. If not, you can apply via phone (800) 829-4933. You will need the information on the SS-4 form.

● What if our society has two EIN’s? The IRS does NOT want you to have two EIN’s. Please take the necessary steps to transfer all assets to the EIN that is filed with the IRS through our Group Filing. Also, write a letter to the IRS requesting that they cancel the other EIN. Contact the Association Finance Office at 614-292-2288 for assistance or call the IRS at 1-800-829-4933.

● What if I still have questions? Contact Michelle Bernett at bernett@ohiostatealumni.org or call (614) 292-2288.
You may have to seek legal or tax specialist advice for very technical issues.

Participate in group filing?
● What is Group Filing? It is an informational filing by a central organization (OSUAA) of affiliated subordinate organizations (societies) who qualify to be recognized as exempt from income tax (under section 501(c)(4) of the tax code in our case). This filing is to advise the IRS of: a) name and address changes of the contact person for each subordinate organization, b) whether or not the organization is still active, and c) any major changes in their operations.  The form includes a place to indicate whether your group is required to file a 990. The IRS requires this filing annually. It is due 90 days before the end of the central organization’s fiscal year. For us, that means due to the IRS by the end of March. Societiesmust submit this information on an annual basis to OSUAA by the first Monday in March.  Please contact Allen Hinojosa if you do not receive this information by the second week of February.

The date when your group files to qualify as a 501(c)(4) starts a statute of limitations of any future filings (see IRS Publication 557for definition).  Your group can save at least $500 in separate filing fees by filing as part of the OSUAA group. The Alumni Association pays the fee, making participation free to you. Your society is not charged for the administrative time in filing the annual return.

● How does my society participate?  You may participate in group filing if your society is constituted by the Association’s Board as a sanctioned group. Your society qualifies as a 501(c)(4) tax exempt group. Please see IRS Publication 557; this is the only group filing we have. Your society may also participate by completing the Association’s group exemption annual information, which is mailed out in January. This form requires a minimal amount of time and effort on your part, approximately 30 minutes, to fill out and return. We provide a self-addressed, stamped return envelope or it can be filed electronically.

● Does our participation in the Association’s Group Filing replace filing our own taxes? No. You are recognized as an individual entity to the IRS. You are verifying that you qualify to continue with your tax-exempt status by participating in the group filing. You will need the Association’s group exemption number (GEN 8074) to put on your tax return. You will need to file a 990 if you had gross receipts of $25,000 or more (CAUTION:  gross receipts are not net income, see below) or a 990T for UBIT, Unrelated Business Income Taxes in excess of $1,000.

● Gross receipts are the sum of all monies deposited in your treasury without deducting expenses, even if it is a direct expense. For example, your group has a tailgate party and the cost is $10. Even if the total $10 is used to cover food and beverage, that $10 would be included as a gross receipt.

● You are required to file taxes four and a half months after the close of your fiscal or calendar year. Your tax filings are due May 15 of each year for the past year, ending December 31. If you require additional time, you must file an Application for Extension of Time to File an Exempt Organization Return, Form 8868, by the May 15 deadline. Please see the instructions for Form 990 in Section H, “Due Date: 15th day of the 5th month after your accounting period ends.”

● What is UBIT income? Per Publication 598: “Unrelated business income is the income from a trade of business that is regularly carried on by an exempt organization and is not substantially related to the performance by the organization of its exempt purpose or function, except that the organization uses the profits derived from this activity.” Publication 557 and Publication 598 deal with this specific type of income.

● What if we receive a 990 from the IRS? Being included in our group filing may trigger the IRS to send you a form 990. We recommend you complete this form to report whether you did or did not earn gross receipts of over $25,000.  Generally this requires that you complete the first few lines of the return, sign and return via mail. 

● What is a 1099? A 1099 is a statement of income that you received for such earnings as interest earned on your savings or checking account or dividends.

Work with corporate sponsors?
Corporate partnerships can provide benefit for all parties involved. They give your group an opportunity to build identity with the added benefit of additional resources.  Strategic business alliances have assisted clubs in funding newsletters, Web sites, and events.  Sponsorship commitments should be made with careful consideration, however, using the guidelines provided below.

● Get agreement in writing; do not sign any long-term agreement that requires any financial committment.

● Take the time to fully understand the sponsorship agreement.

● Review how much visibility will be given to the sponsoring entity.

● Make sure the sponsor’s product or service complies with the Alumni Association’s advertising policy.  The association does not accept advertising for alcoholic beverages, tobacco, personal hygiene products, advocacy positions (political, philosophical, religious, moral etc.), or contributions for a purpose not directly affiliated with or benefiting The Ohio State University or the Association.

● Are there competing sponsors?  If so, how will your society respond to this situation?

● Make sure you solicit sponsors fairly, giving all parties an equal chance to participate.

● For more ideas about corporate partnerships and to get a copy of a sample partnership agreement, contact Kathy Bickel.

Club and Society sponsorship arrangements must not conflict with the OSUAA sponsors. A yearly sponsorship audit will be conducted by the OSUAA and all groups will be expected to provide lists of current and potential sponsors.