Chapters of the UTAA are responsible for maintaining their own financial records. A chapter has the responsibility to keep the chapter in good standing and budget accordingly. The UTAA provides no direct monetary support (cash gifts or checks) to chapters, except for the $100.00 earned with Gold Award Status (see Chapter Awards Section). Therefore, it is very important that the chapter plan ahead and budget wisely to allow the chapter to cover its expenses throughout the year.
The UT Alumni Association is a non-profit organization. As a part of this organization, chapters are given the opportunity to utilize this benefit. Unfortunately, this benefits in-state chapters more than out-of-state chapters, due to the rules of the Tennessee Department of Revenue.
Tax can be a large expense for a chapter when paying for an annual meeting or another gathering, especially in Tennessee where on average the sales tax is at least 9% for each sale. Use this benefit to your advantage, as you need to save pennies where you can for the chapter.
Please keep in mind that in order to properly use the UTAA’s tax-exempt status, the invoice must be made out to a UTAA chapter and paid for with a UTAA chapter’s checking account. An individual purchasing something for a chapter would still have to pay sales on that purchase, unless they are making the purchase with a check from the chapter’s checking account.
It is very important that you follow these guidelines. If you have any questions about the tax-exempt status of the UTAA, please contact Angie Holtzclaw at the UTAA at 865-974-3011.
Active chapters of the UTAA are asked to open and maintain a checking account at a banking institution in the Chapter’s area. Checking accounts allow a chapter the opportunity to look more professional when collecting registration funds for events.
To ensure that the funds are being used appropriately, the Chapter treasurer should provide reports at each board meeting as to the status of the account. In addition, the UTAA asks that the Chapter provide a year-end summary of the Chapter’s expenses and revenue for the calendar year.
It is important that the Chapter talks with the UTAA before setting up an account to help the process go much smoother for all involved. Below are samples of the letters that are provided by the UTAA once the Chapter has talked with the UTAA about opening an account.
Chapter Leaders – Please find below guidelines on how to open a bank account for your chapter at the local level.
Attached are the forms needed to open an account. As you go to the bank/financial institution to set things up, please remember:
For additional information, contact your Chapter Representative at the University of Tennessee Alumni Association at 865-974-3011. Thank you.
