It is important to open a bank account in the name of the club using the club’s EIN number. Clubs and events should maintain a checking account or bank account in a board approved financial institution. Incorporating your club or event may be required to open a bank account. Members of the board or individual members of a club should never be allowed to co-mingle the club’s finances in their personal checking accounts. A resolution should be passed by the board designating signers for a checking account, and this should be documented in the organization’s meeting minutes. At least two signers should be approved; most banks are requiring this for nonprofit organizations. Club funds should never be co-mingled with a personal bank account of a board member or treasurer.
The biggest financial concern for new clubs is the seed money needed to join the RRCA and pay insurance premiums. The following outlines three recommend ways to jump-start your club’s finances:
Learn more about managing your club finances
- The newly elected treasurer may collect first-year dues at the planning meeting.
- A club officer may decide to make a tax-deductible contribution to the club to establish the organization with the RRCA and cover the first year of dues and insurance costs.
- A club officer may make a personal loan to the club. Make sure to execute a binding loan document between the club and the loaning officer.
once your club is established.