Sample Process for Creation of Financial Accounts and Dues Collection

Sample process for creation of financial accounts and dues collection

It is important to note that according to the ACDIS Local Chapter Official Agreement contract there is no financial or legal relationship between ACDIS Local Chapters and ACDIS National. ACDIS is wholly owned by HCPro Inc., and is not a non-profit entity.

Therefore, ACDIS encourages Local Chapter Leaders to think carefully prior to making a determination regarding whether to collect meeting dues from their members. Doing so requires chapter leadership to impose a certain set of formal processes such as the creation of organization bylaws, leadership and committee roles and responsibilities, non-profit tax status, bank accounts, and oversight processes.

The following comments have been offered by the Central Indiana ACDIS Chapter and the Dallas ACDIS Chapter as examples to how their groups proceeded through the process. Other chapters which collect dues include the Georgia (Southeastern Regional) ACDIS Chapter and the Florida ACDIS Chapter. ACDIS encourages Local Chapter Leaders to reach out to leadership from these states to discuss best practices.

Central IN Chapter

After completing research, the leadership determined the best avenue was to establish an “unincorporated business checking account.” They worked with a Chase business banker who advised them to:

1. Establish a Tax ID number which can be done by visiting the IRS website and applying for an Employee Identification Number (EIN) number
2. Present a Charter Document that validates the chapter’s existence
3. Present “Articles of Association” which explain the chapter’s mission and goals and outlines officer roles and responsibilities
   

Texas

First, do some research and call a few area banks. Ask for information on business banking accounts for non-profit organizations.

Tip: In Florida, it’s called a club account, so it could be called something different in your state. Be sure to explain your wishes and thoroughly describe your reasons for opening the account to ensure the best response from your banker.

Choose the bank with the best options and convenience. You want to make sure that there are no monthly fees on the account, or that there some type of work-around solution exists to help you avoid monthly fees if possible.

Open the account with two officers from the organization. Texas chose the president and the treasurer. This way, if one is unavailable, the other can write checks, or make changes to the account. If one officer leaves/resigns, the other officer can make the necessary changes to the account or add any additional new officers to the account.

In Texas, to obtain a business banking account for non-profit organization, you must obtain your EIN from the IRS and register your organization’s name with the CountyClerk.

Tip: Call your bank(s) first and have them outline the process for your state so can be sure you have all the necessary steps and follow all the applicable rules.

To obtain an EIN you can either call the IRS 800-829-4933 (they are available 7 a.m. to 7 p.m.) or apply online:

Tip: If you apply online, remember to apply as an “other non-profit” organization. The Texas leaders found it much easier to call the IRS and answer a few questions. They received their EIN over the phone but that may not be the case in your state.

When information contained on the EIN, such as a change in chapter leadership occurs, a letter providing the name of and taxpayer identification number of the current principal officer, general partner, grantor, owner or trustee needs to be sent on official letterhead to the IRS. The IRS needs the entity’s complete name, EIN, and mailing address to identify the IRS account.Depending upon the entity’s principal business address, the entity should send the letter to the following IRS campus:

Internal Revenue Service
M/S 6273
Ogden, UT84201
Fax Number: 801-620-7116

To register your name with the County Clerk (again this process refers to the experience of the Dallas, Texas, chapter leadership):

• Call the office in the county where you want to file.
• Ask the procedure for filing an “Assumed name/Certificate of Ownership for Unincorporated Profession.”
• In Dallas, the form was available online at . Leadership filled it out form and took it physically to the clerk’s office.
• Both officers need to present a valid government photo ID (Driver’s License)
• There is a fee for registering your name. In Dallas, it cost $16.50.
• In Dallas, the certificate is good for 10 years. You will need to re-file in 10 years.

Once both were obtained, the Dallas leadership was able to proceed to the bank, produce both documents, along with their driver’s licenses, and open the account.