Skip to main content
Alumni
Share Your Story

Finances & Fundraising

Back to: ChapterPedia

All financial operations of chapters in the United States are governed by the 501(c)(3) IRS status granted to Brigham Young University. This allows the operation of educational activities to go without assessment of corporate federal income taxes and also grants exemption from payment of sales tax in Utah and Hawaii. Each chapter is to be self-supporting and operate on a break-even basis. BYU Alumni does not provide any direct financial support to its chapters. Chapter Finances and Fundraising should be focused on supporting current students through the BYU Alumni Replenishment Grant program.

Page Navigation

Chapter Finances

Chapters are allowed to have a local bank account through Deseret First Credit Union (DFCU). This account is to be used only for chapter operations. This account runs just like a personal account, but for your chapter. You can learn more about having a DFCU account here.

BYU houses a chapter account for your chapter. This account takes in funds donated from philanthropy, true blue awards, and Eventbrite ticketing. This fund can be used to award replenishment grants and chapter operations. Funds can be wired from this account to your DFCU account for chapter operations.

Chapter Financial Responsibilities

Chapters are responsible for covering the following expenses related to their events and activities:

  • Reserving facilities for events and gatherings
  • Food and beverage costs
  • Taxes and gratuity
  • Expenses associated with a guest speaker, performer, or group, including travel, lodging, and event admissions
  • Advertising expenses
  • Postage costs for flyers, postcards, or newsletters
  • Miscellaneous Needs

Chapters can request BYU Alumni to design, print, and mail flyers or postcards for chapter events. The costs will be covered using the chapter's accounts.

BYU Alumni may decide to pay for a postal mailing based on certain criteria. Chapters can request this by contacting the Alumni Communications team. The criteria considered are:

  • Is there broad appeal for the event that an email won't be sufficient?
  • Is the potential financial benefit for the chapter large enough to justify the cost?
  • Is this a series of events across several chapters, where the economy of scale can improve the cost basis?

The lead time for such mailings is 6 to 8 weeks before the event.

Chapters are also responsible for covering ongoing and miscellaneous needs, such as stamps, envelopes, stationery, gifts, decorations, and so on.

Additionally, chapter leaders must cover the annual chapter leadership conference registration costs for any additional members beyond the complimentary registration.

Instructions for Opening a New Bank Account

Getting Started

Brigham Young University Alumni LLC is a new LLC entity created for the use of Alumni, Management Society, and Law Society chapters, and it has its own tax ID.

To ensure compliance, all local chapter bank accounts using the old tax ID need to be closed and reopened with the new LLC’s tax ID.

We have partnered with Deseret First Credit Union (DFCU) to handle all local accounts for chapters. To open a new account, please email a list of signers along with their email addresses to Kellie Daniels kellie_daniels@byu.edu or Nicol Legakis nicol_legakis@byu.edu. The signers will then receive a link to open the account online. When filling out the information, please specify your chapter name as Alumni, Management Society, or Law Society chapter. Once each signer has submitted their information, DFCU will open the account and send the signers a welcome packet about the account.

Please note that you should not close your old bank account until the new one is opened. Once the new account is opened, please close the old bank account and notify Kellie that the account is closed.

Checks

Checks can be ordered from DFCU to be used to reimburse individuals for expenditures related to chapter activities.

Online Banking

Once the account is opened, signers on the account can create online banking credentials to track and manage the account. Just visit dfcu.com.

Deposits

Check deposits are made by using the DFCU app.

Cash deposits can be made by using DFCU’s national credit union CO-OP Network. They call it Shared Branching. You find a participating credit union in your area and you give them your account name and number and they deposit the money for you and it gets credited to your account. See DFCU’s website for locations of shared branches (https://www.dfcu.com/about/dfcu/locations/).

Account policies

To ensure proper handling of chapter funds, please adhere to the following policies regarding chapter bank accounts:

  • Do not place chapter funds in a personal account.
  • When requesting reimbursement for expenditures related to chapter activities, you cannot make a check out to yourself and sign it. Someone else must sign the check.
  • No debit cards are to be issued for the account.
  • Only non-related individuals may be signers on the account. At least two signers are required, and it is recommended that there be three. The suggested signers are (1) the chapter chair, (2) the chair-elect, and (3) the chapter treasurer.
  • Please keep the account balance under $5,000. For funds over $5,000, please send the funds to the Alumni Relations office for deposit into your chapter's BYU account.
  • A financial evaluation and statement must be submitted to the Alumni Relations office by January 31 of each year.
  • Venmo can only be used by regional and affinity chapters for taking payments for products. BYU college chapters cannot use Venmo.
  • Gift cards cannot be purchased and should never be used to compensate for services rendered.
  • All donations go through LDS Philanthropies

Wiring

Funds can be wired to DCU from your BYU Chapter Account and we at BYU can wire funds from your BYU Chapter Account.

Note: Please don’t close your old bank account until the new one is opened. Once the new account is opened, please close the old bank account and notify Kellie that the account is closed.

Replenishment Grants

Funds accumulated for chapter replenishment grants will be housed in an account at BYU. This account is managed by Alumni Relations.

  • To deposit money in your chapter’s replenishment grant fund:
    • Make all checks payable to BYU and add the chapter’s name in the memo line
    • Clearly distinguish individual donations from funds generated by event proceeds
    • Individual donations included in a check from the chapter must be identified by:
      • Name and address of individual donors
      • Check number (a copy of the check is preferred)
      • Amount
    • Mail all funds to the Alumni Relations office, 282 Hinkley Center, BYU, Provo, UT 84602. The money will be deposited to your chapter’s replenishment grant fund and donation receipts for donors will be processed by Philanthropies.

Fundraising to Support Alumni Chapters

  • Event Fees – Ticket prices for any activity involving food, recreation, or entertainment should cover all expenses for the activity and allow for a small surplus.
  • Sponsors (Business Underwriters or Contributors) – Businesses that are willing to help defray the costs of an event, totally underwrite the costs, or provide other services:
    • Most sponsors will choose to deduct their sponsorship fee as a business expense rather than a charitable donation. They may request a W9 for that purpose.
    • Should a sponsor request a tax donation receipt, follow these steps:
      • Send the check to the Alumni staff
      • If the check is deposited to a local account, please send the money and a copy of the check along with all contact information of the sponsor to the Alumni office
      • Include a valuation listing of whatever benefit the sponsor received for their fee
      • All donations and sponsorships will be delivered to Philanthropies for recording
  • Individual Donations – Chapters may ask local alumni for donations to help cover chapter expenses, however, donors should receive no goods or services in exchange for their donations. These donations may be tax-deductible; however, tax laws regarding charitable donations are increasingly complicated, so chapter leaders are encouraged to consult with Alumni Relations staff or Philanthropies before soliciting donations.
    • Send the check to the Alumni staff 

Contracts and Agreements

Chapters are not authorized to sign contracts when reserving venues. Contracts should be sent to the Alumni Relations office for approval by Risk Management and signature by authorized signatories (Kellie Daniels and Nicol Legakis).

Chapters are required to inform BYU Alumni Relations of all agreements and contracts they enter into. Please provide the following information:

  • Name of contracted partner
  • Contracted amount
  • Name of person signing the agreement/contract

Activities or events with contractual agreements that exceed $6,000 require review and approval by Brigham Young University. Prior to being signed, such contracts should be forwarded to BYU Alumni.

Contracts will be reviewed by officers of BYU who will determine whether they will be signed by them or returned to the chapter for processing.

Chapter activities or events that occur outside of chapter boundaries are always subject to review by officers of BYU, regardless of the cost. Please forward any such contracts to BYU Alumni Relations.

Fundraising Policies

Philanthropies, a department of The Church of Jesus Christ of Latter-day Saints, facilitates fundraising activities for BYU. The BYU Annual Giving team welcomes the opportunity to help you with your chapter fundraising needs and can be reached by contacting Isaac Sanft at isaacsanft@churchofjesuschrist.org.

Please adhere to the following guidelines to ensure success:

  • All fundraising projects carried out by the chapters should be pre-approved through Alumni Relations and should relate directly to and benefit BYU.
  • Philanthropies records all charitable contributions and prepares official year-end tax receipts on behalf of BYU, a 501(c)(3) non-profit organization. To avoid confusion, checks should be made payable to Brigham Young University, with chapter designation information (i.e., Alaska replenishment grant) in the memo line.
    • To avoid tax-deductibility problems for a donor, please do not promise that a gift will be a charitable contribution. You can say that a donation may be tax deductible but it is up to the donor to claim the appropriate amount per IRS guidelines.
    • Under current IRS regulations, it is not permissible to use a canceled check as documentation of a charitable gift of $250 or more.
  • Please keep all donor information confidential.
  • Chapter leadership should contact the Annual Giving team when considering any person-to-person fundraising tactics or any time you want to approach someone with a specific gift to ask in mind. A quick and easy clearance process must occur to ensure your plans are in alignment with other fundraising efforts.

Fundraising Events

There are two types of fundraising activities, those that have a mass audience appeal and those that have an individualized attendance.

Mass Audience

These are events that have ticket sales and some level of social or entertainment value, such as cultural performances, sporting events, picnics, tailgate parties, etc. Even though money may be raised from these activities, the ticket price paid by the purchaser is for the event and not considered a donation; individual donation receipts are not necessary in these cases. There should be a statement on event publicity and on the ticket indicating that proceeds from this event benefit the local chapter of BYU Alumni.

Individual Attendance

These events have a clear purpose of fundraising (golf tournaments, dinners, etc.). For events that have as a part of the price a donation that exceeds $10, please use the following guidelines:

  1. All publicity for the event is to clearly state the purpose of fundraising. If the donor is entitled to receive any goods or services as part of the event, please make note of the Entitled Benefit policy in Step 3c below.
  2. For tax purposes, the only valid receipt is prepared by Philanthropies.
  3. Chapter leadership is responsible to:
    • Create a complete list of all individuals and/or companies that participate in the event.
    • Provide the participant's receipts for cash or check payments to show that the funds were received. Keep a copy of all checks and cash receipts; this information will be used by Philanthropies to prepare tax receipts.
    • Entitled Benefit policy:
      • When a chapter solicits a payment in excess of $75 for an event for which the donor is entitled to receive something of value in return for that payment, the chapter must provide to the donor a good faith estimate of the fair market value of goods and services (green fees, gifts, food, entertainment, etc.) that the donor is entitled to receive. The chapter should further inform the donor that any charitable deduction is limited to the excess of the amount paid over the value of the goods and services provided by the chapter. This information must be provided in a written statement and should be included in the solicitation materials.

To report the event, please send the following to BYU Alumni Relations:

  • A spreadsheet listing all donors, their contact information, the method they used to pay, the amount they paid, and the entitled benefit they received.
  • Copies of any checks received or copies of receipts given for cash received.
  • An accounting of the expenses for the event (copies of receipts paid is preferred).
  • The funds that were raised after the expenses and are now donations to BYU.

Alumni staff will deliver everything to Philanthropies and ensure that your account is properly credited. Philanthropies will then issue tax receipts based on the information provided.

Reimbursement for Chapter Expenses

In the event that you or someone on your Chapter leadership team uses personal money to purchase items for a Chapter activity, one of the following needs to occur:

  • Reimbursement
    • The local Chapter’s bank account should reimburse the personal expenditure whenever possible. Be sure to log the transaction in your Chapter Financial Records report.
    • If local Chapter funds are inadequate, submit the reimbursement and receipts using the Chapter Reimbursement Forms. 
  • Charitable Donation
    • If this is considered a charitable contribution to BYU, the donor should submit a copy of the receipt(s) for the expenditures for Philanthropies to record the gift and issue a receipt to the donor. Please use the Chapter Donation Form and send the completed form + receipt(s) to Alumni Relations c/o Kellie Daniels at 284 HC Provo, UT 84602-2400 or kellie_daniels@byu.edu.

Licensing

If you plan on producing any merchandise with BYU or BYU Alumni logos, for giveaways or resale, you need to contact the licensing department. They will connect you with vendors that already have the logos and are licensed for these services. They can also help with one-time licenses for your event or project. Call (801) 422-1920 or byulicensing@byu.edu.