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Chapter Finances and Legal Issues

Chapter Finances and Legal Issues

Your chapter is a component of the national organization, but it operates independently and must manage its own finances. This section provides information and templates to assist you in managing an effective chapter.

Chapter Incentives: ASDA and ADA offer various incentive programs throughout the year for chapters to take advantage of.

Sponsorship: Many chapters raise funds through sponsorship of their activities, websites and newsletters. Download sample sponsorship forms that chapters can use when contacting potential sponsors. Check out the how-to guides on fundraising and vendor fairs for additional ideas for raising money.

Chapter Constitution and Bylaws: All chapters are required to have a current set of constitution and bylaws. ASDA has a template that chapters can use as a reference. All updated versions should be sent to Danielle Bauer, Director of Membership, in our central office for our records.

Affiliation Agreements: All chapters are required to have a signed copy of their affiliation agreement on file with the ASDA central office.

Chapter Waiver: When holding chapter events that hold high risk, such as ski outings, participants should sign a waiver to prevent liability against your ASDA chapter or national ASDA. This template can be used for this purpose.

Chapter Exemption: Filing for group exemption with ASDA is the easiest way for chapters to obtain tax-exempt status from the federal government. ASDA chapters that have been granted a Group Tax Exemption by the Internal Revenue Service do not have to pay tax on income that is related to its tax exempt purpose. To file for group exemption, submit the following three documents to Danielle Bauer by Aug. 30:

Chapter Bank Account: Chapters are encouraged to open a checking account for expenses such as event costs and office supplies and for depositing revenue from chapter dues, fundraisers, and sponsors. To open a bank account, you will need a Federal tax ID # (see SS-4 form above for obtaining this number) and a form with authorized signatures for the account. It is recommended that two signatures be required and can be the delegates, treasurer or chapter advisor.

Direct Deposit: ASDA offers chapters the opportunity to sign up for direct deposit for their local dues and incentive checks from ASDA. To participate, an ACH form and copy of a voided check must be sent to Danielle Bauer in the central office.

Sample Budget Spreadsheets: It is important for your chapter to track your annual revenues and expenses. There are sample spreadsheets to use as templates: