Chapter Finances

Chapter Bank Account

If one does not already exist, the alumni chapter should establish a bank account at a local financial institution.

This will function as the chapter's operating account and will also permit the IUAA to electronically deposit dues allocations to the chapter. The checking account and routing numbers should also be shared with IUAA staff so that these electronic allocations can be sent to the chapter. The name of the chapter treasurer and at least one other person from the chapter should be on the account. It is also necessary to have the name of the IUAA vice president and chief financial officer on your account.

When all the local signatures have been added to the bank account signature card, send the completed card to the address below. Once the vice president and chief financial officer has signed the card, it will be returned either to you or to your bank, as you choose. Your IUAA staff liaison can help you obtain required signatures. It is important that each chapter maintain only one bank account. The Alumni Association has options for investing funds that eliminate the need to have a second interest-bearing account. Contact the Alumni Chapters secretary or your chapter director for more information on investment accounts.

Chapter Financial Reports

Monthly bank statements should be sent from the bank directly to a chapter officer other than the treasurer, preferably the chapter president.

This officer should review the statement, canceled checks, and deposits for accuracy and appropriate use of funds. After a satisfactory review, the statements and accompanying materials should be forwarded to the chapter treasurer. It is the responsibility of the chapter treasurer to submit a report twice per year detailing how chapter funds were used. The two reporting periods are May 1 to October 31 and November 1 to April 30. If either of these reports is not submitted in a timely manner, then any future dues allocation will be withheld from the chapter until the report(s) have been filed with the IUAA.

The material to complete the reporting forms will be sent to you by the Alumni Chapters staff. The mid-year reporting forms (period covering May 1 to October 31) are mailed in October and are due back to IUAA by November 30. The end of the year reporting forms (period covering November 1 to April 30) are mailed in April and are due back to IUAA by May 31.

The material sent to the IU Alumni Association along with the financial reporting form should consist of the original receipts or invoices and original bank statements and canceled checks. The IU Alumni Association retains all of the documents that are submitted with these reports, as they become part of the annual audit, which is used to complete the state and federal tax returns. The fiscal year for all IUAA-affiliated chapters is the same as the IU Alumni Association and Indiana University: July 1 to June 30.

Click on the links below to view a sample of chapter financial reports.
Financial Report Spreadsheet

Chapter Dues Allocation

Chapters of the IU Alumni Association receive an annual dues allocation from the IUAA to assist the chapter with events and activities. The allocation comes to the chapter in two separate payments (in August and February of each year). The annual IUAA dues allocation to a particular chapter is based upon the number of IU Alumni Association paid members in the chapter area. The more members you have in a chapter area, the more funds the group receives for events. Remember, dues allocations from the IU Alumni Association are to be used for alumni chapter events and activities only. They are not to be used to fund annual chapter scholarship programs.

Chapter Fundraising

All alumni chapters can raise additional funds for events, activities, and scholarships. Most do this through event fees, sponsorships, and raffles. Some chapter events will require an admission fee while others will not. Chapter volunteers should consult their IUAA staff liaison to determine appropriate chapter event pricing. Chapters often raffle IU-related prizes and gifts at some or all of their events as a way of supplementing their annual budgets. Other chapters rely heavily upon annual sponsorship programs. These corporate sponsorship programs provide chapters additional funds to offer more events or to underwrite annual chapter scholarships. Learn more about the IUAA Sponsorship Policy.

Note: If a chapter is going to solicit individual gifts for their scholarship account, the IUF must approve the solicitation piece in advance of its use.
 

Examples of chapter sponsorship or fundraising programs:
Sample Corporate Sponsors
Sample Corporate/Annual Sponsorship Letter
Sample Sponsorship Letter
Sample Sponsor Contract

Alumni Chapter Scholarship Accounts

1. An alumni chapter may establish its own IU Foundation (IUF) scholarship account with a minimum $1,000 account balance. Chapters should contact IUAA to establish their own scholarship account.
2. The general Alumni Chapter Scholarship account can be used to pass scholarship checks through to Indiana University for dispersal to students or to hold a particular chapter's scholarship funds. (Note: Alumni chapters should only establish or maintain one bank account for alumni chapter activities. Any scholarship funds should be deposited with the IUF, rather than being held in a separate local account.)
3. Deposits can be made by a chapter check or by forwarding individual checks made payable to IUF or the name of the scholarship account. If individual checks are sent, then a listing with the name of each donor and check amount must accompany the deposit. Those individuals will get a receipt from IUF for their donation. If a chapter is going to solicit individual gifts for their scholarship account, the IUF must approve the solicitation piece in advance of its use.
4. IUAA will maintain an accounting of the funds for each chapter. Chapters may check their scholarship account balance at any time online at Online Scholarship Account Balance. Chapters will receive a quarterly report from the IUAA on their IUF scholarship account.
5. Chapters that don’t want to establish a separate account may send the scholarship funds each time they award a scholarship. These checks should be made payable to the IU Foundation and mailed to the alumni chapters’ financial secretary along with the scholarship processing form.
   

Insurance Coverage

Alumni chapters and their members are additional insureds on the IU Alumni Association's (IUAA) General Liability policy, but only with respect to their liability for IUAA activities or activities they perform on the IUAA's behalf. A Certificate of Liability Insurance can be obtained from the Alumni Chapters secretary for distribution to those vendors who request such a certificate.

Alumni Chapter Investment Accounts

1. Alumni Chapters are encouraged to use their financial resources to provide programming and service to both Indiana University and the members of their respective chapters. However, in the event that alumni chapters have surplus funds available, they may choose to use the Alumni Chapter Investment Account to invest these surplus funds. This account has been established and authorized by the IUAA through the IU Foundation (IUF).
2. No other investment vehicle is allowed for any chapter funds, except for the chapter scholarship funds held through the IUF in accordance with the IUAA’s policy on alumni chapter scholarship funds.
3. Funds should be invested for a minimum of six months. Since the investment account is invested in both fixed income and equities, it is possible that over a short period of time the invested funds might decline in value. The IUAA will guarantee no loss of principal.
4. The following procedures apply to using the Alumni Chapter Investment Account:
   • Chapters wishing to use this account should make their checks payable to either the “IU Foundation” or the “Alumni Chapter Investment Account” and send the checks to their IUAA alumni chapter director. A minimum $500 deposit and ongoing balance are required.
   
   
   • IUAA will maintain an accounting of the funds on deposit for each chapter. Chapters may check their investment account balance at any time online here. The IUAA will also distribute a quarterly report to each chapter with funds on deposit. The fund will be invested through the IUF’s pooled funds and any income earned will be distributed proportionately by value of each chapter’s funds on deposit. Earnings will be earned monthly and distributed the following month. No earnings will accrue on any new deposits until the month after the deposit is made.
   
   
   • Withdrawals can be made at any time by making a request in writing to the alumni chapter director including the amount needed and the name of the person to whom the check should be sent. All checks for withdrawal will be made payable to the name of the alumni chapter. Also, funds may be transferred from the alumni chapter investment account into one of the alumni chapter scholarship accounts held at the IUF.