Here is the information you need to set up a bank account
for your Alumnae Chapter. You definitely want to open a nonprofit checking
account. They are cheaper (MUCH) and accurately reflect the status of
the group and facilitate any dealings with the IRS. Most banks require
that you have an Employer Identification Number (EIN) or they will not
give you special nonprofit account privileges (reduced/no fees, etc).
You should talk to the bank you plan to open an account at first and
find out what their policy is with nonprofit entities. It varies by
bank.
There are generally some things that need to happen
before you can open an account…
1) Establish the legal name of the alumnae chapter.
The Chapter's Charter, issued by Alpha Phi International
upon approval of your Alumnae Chapter Petition, establishes the legal
name of the chapter. The Charter is complemented by the Chapter's Bylaws,
which detail the Chapter's officer structure and operating rules. You
may already have a Charter and Bylaws. If not, you should make a quick
call to the program Manager of Alumnae at the Executive Office (847-475-0663)
to confirm the status of your Charter and to see if she has a copy of
your Bylaws on file. If you already have them both, then it's less for
you to do :-)
Often, a chapter will run the initial dues checks and
expenses through an individual's existing account until they have completed
the process to establish a chartered alumnae chapter. The volume is
initially minimal and the time period is typically short (turnaround
time for Petition to be processed and Charter to be approved/issued).
This may or may not be the way you choose to start. You may also hold
dues checks for the short time necessary to complete the charter process
and simply deposit them when the chapter's account is available.
You need a legal name to get an EIN, but another idea
is to interpret the IRS' Instructions to our advantage. For example,
the instructions regarding the legal name state you must, "Enter
the legal name of the entity applying for the EIN exactly as it appears
on the social security card, charter, or other applicable legal document."
The "other applicable legal document" can be the Chapter's
Bylaws. This, of course, means that the name of the chapter on the Charter
MUST be consistent with the name on the Bylaws.
2) Obtain an Employer ID#.
To establish the alumnae chapter as a nonprofit, you
will need to apply for an EIN with the IRS (Form SS-4 - can be viewed
and printed at http://ftp.fedworld.gov//irs-pdf/fss4.pdf). Complete
the form. Note that you will need Alpha Phi International Fraternity's
General Exemption Number (GEN) to respond to Question 8a. The GEN #
is 1038.
In the IRS' SS-4 instructions, it indicates that you
can apply for the EIN over the telephone (you must have the completed
SS-4 form available when speaking with Tele-TIN). You will receive the
EIN immediately over the phone. You must record the EIN on the form
and then mail or fax the original (retain a copy) WITHIN 24 HOURS. The
Tele-TIN phone numbers and mailing addresses for the forms are as follows:
**Florida, Georgia and South Carolina:
Tele-TIN Phone #: 770-455-2360
Mailing Address: IRS, Attn: Entity Control, Atlanta, GA 39901
**New Jersey, New York (New York City and counties of
Nassau, Rockland, Suffolk and Westchester):
Tele-TIN Phone #: 631-447-4955
Mailing Address: IRS, Attn: Entity Control, Holtsville, NY 00501
**New York (all other counties), Connecticut, Maine,
Massachusetts, New Hampshire, Rhode Island and Vermont:
Tele-TIN Phone #: 978-474-9717
Mailing Address: IRS, Attn: Entity Control, Andover, MA 05501
**Illinois, Iowa, Minnesota, Missouri, Wisconsin:
Tele-TIN Phone #: 816-926-5999
Mailing Address: IRS, Attn: Entity Control, Stop 6800, 2306 E. Bannister
Road, Kansas City, MO 64999
**Delaware, District of Columbia, Maryland, Pennsylvania
and Virginia:
Tele-TIN Phone #: 215-516-6999
Mailing Address: IRS, Attn: Entity Control, Philadelphia, PA 19255
**Indiana, Kentucky, Michigan, Ohio, West Virginia:
Tele-TIN Phone #: 859-292-5467
Mailing Address: IRS, Attn: Entity Control, Cincinnati, OH 45999
If you do not apply for the EIN# over the phone, the
IRS indicates that there is a 4-5 week turnaround time for processing.
3) Open a bank account.
Using the legal name of the chapter, an authorized officer
(as stipulated in the Chapter's Bylaws), may open a bank account. We
suggest that you have two authorized signers to ensure that there is
dual control and that your chapter does not experience a financial emergency
when your Treasurer is unavailable (e.g., vacation).
