The Federal Tax ID Number is a number used to identify a business or other organization. Student organizations wishing to open a bank account must apply for a Tax ID Number or a Employee Identification Number (EIN). Organizations should not open a checking account using an individual’s social security number. The financial burden of that account then rests with that individual and they become responsible for claiming any interest accrued on that account on their own taxes. They also become responsible for the account if there is a problem with it.

If your organization does a fundraiser with an outside business like a restaurant, you need a tax ID number to receive money or in-kind donations. You will also need this number to open a bank account. Additionally, obtaining a tax ID Number helps to ensure the IRS will not make any of an organization’s members personally responsible for taxes on revenue that the organization has earned.

Registration or recognition by the Division of Student Affairs (formerly Campus Life Services) does not imply tax-exempt status and student organizations are not allowed to use the University’s EIN or non-profit status. Student organizations are independent entities responsible for their own finances and establishing and maintaining their tax status with the IRS.

No. Student organizations are not Federally Tax-Exempt Non-profit Organizations. Only the federal government can confer charitable status on an organization. Filing for charitable status (501(c)(3) status) is a lengthy legal procedure that commits the organization to the rigorous annual reporting procedures required by the IRS. Because of the annual reporting requirements and the frequent turnover of student leadership, we do not encourage student organizations to file for charitable status.

The easiest way to apply is online through the IRS website. You will be walked through the application and receive your number immediately. You can also apply by mail or over the phone.

Go to the IRS’ Apply for an Employer Identification Number (EIN) Online Web site: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online

1. Click the Apply Online Now button in the middle of the page.
2. Once you have read the instructions on the page, click the Begin Application link
3. Select the View Additional Types, Including Tax-Exempt and Governmental Organizations option for the “What type of legal structure is applying for an EIN?” question and then click the Continue button. It is very important that you carefully review your organizational selection before continuing with the EIN process. Additional information about some of the types listed below:
1. Common types for student groups
1. Community or Volunteer Group
• A community or volunteer group is any specialized interest group that comes together to provide volunteer services. Examples of community or volunteer groups include neighborhood watch groups and preservation societies. These groups generally apply for EINs for banking purposes only.
2. Memorial or Scholarship Fund
• A memorial or scholarship fund is set up in memory of someone who has died. The family may request that donations in memory of their loved one be sent to a specific charity, church, or school. Scholarship funds provide monies to be awarded to deserving students in the future.
3. Sports Teams (community)
• These organizations are comprised of sports teams or clubs primarily participating in live sporting events before a non-paying audience. Examples include bowling leagues and little league teams. These groups generally apply for EINs for banking purposes only.
4. Carefully review and select your EIN organization type. Once your selection is made, click on the Continue
5. To confirm your selection click the Continue button
6. Enter your first name, last name, and SSN/ITIN. While the online SS-4 form requires the individual to enter their Social Security Number (SSN), it is still the EIN that is used to open a checking account, not any individual’s SSN.
7. Select whether you are an officer or member of the organization or whether you are applying for the EIN as a third party on behalf of the organization and then click the Continue
8. Enter the address information for your organization and click the Continue button when you are done.
9. Enter the requested information about your organization and click the Continue button when you are done. Repeat this step for the next screen requesting additional organizational information.
10. Select the Other option for the question “What does your business or organization do?” and click the Continue button
11. Select the Organization option for the question regarding your business activity and click the Continue
12. From the list of organizational activities select the activity that best describes what your organization does and click the Continue
13. Select whether you would like to receive your EIN confirmation letter online or by mail and click the Continue button.
14. Once you receive the information do the following:
1. Retain a copy for your student organization files
2. Upload a copy to UMBconnect
3. Send a copy to your advisor
4. You will also need a copy of this form to open an account at a credit union or bank.

For assistance you should contact the IRS directly. They can be reached at 1-800-829-4933.