Finance Best Practices
The University of Illinois Alumni Association (UIAA) is here to support your alumni group’s goals and initiatives in a variety of ways. One of those ways to provide guidance on important alumni group governance, such as finance.
Alumni Clubs and Special Interest Groups are encouraged to open a bank account specific to your alumni group. An active checking account allows the UIAA to provide financial assistance to your group in addition to allowing the group to make payments to vendors, collect membership dues, and fundraise for alumni club scholarships.
Below, we have outlined some best practices for our alumni volunteer groups. If you do not see a specific item that addresses your question or concern, please reach out to Tyler Gagai, Director of Alumni Clubs, at email@example.com for further assistance.
For club and special interest group bank accounts, the UIAA recommends that groups follow these suggested best practices to ensure:
- Transition to electronic record keeping.
- Two signatures are required on each bank account and all financial transactions.
- Max of two local accounts (group checking account & group savings account) per alumni group
- President & Treasurer have access to all banking documents.
- Weekly monitoring of all financial activities by President & Treasurer to ensure account accuracy.
- Monthly bank statements should be sent from the bank directly to the Treasurer and preferably the club President. (This officer should review the statement, canceled checks and deposits for accuracy and appropriate use of funds). Email is an acceptable delivery method, but should be directly from the bank.
- Provide copies of banking statements to the executive board at meetings.
- Utilize “banking alerts” for transactions over $x dollars. The group needs to decide what “x” is because it will likely be different for each group.
- Alumni groups are encouraged to open bank accounts with business banking rather than personal checking. Business banking accounts are made only with a group and not an individual. This is helpful with alumni group leadership transitions and ensures continuity.
- Ensure the name of the account matches the official name of your alumni club.
- Alumni groups may need to establish EIN number in order to open a business checking account. If your financial institution requires an EIN, please report your EIN to the UIAA.
- There is no UIAA-preferred bank for your group to open a checking account.
- Ensure the bank can deposit US dollars.
- Each bank may vary on documentation required in setting up accounts. Please contact Tyler Gagai if you have any questions regarding documentation requested by your financial institution.
For alumni groups that collect registration payments involving cash at events, the UIAA strongly recommends that two or more club leaders count and record monies collected during the event. This should be done prior to leaving venue and then documentation should be provided at club board meetings confirming accurate deposit.
The UIAA recommends that your events go cashless when possible. We recommend that your club considers a Venmo, PayPal, or Sqaure account to help facilitate cashless transactions. A cashless option is also more favorable to younger alumni.
The UIAA encourages alumni groups to create budgets for any event that involves financial commitments from the club and/or events that involve utilization of financial assistance from the UIAA.
Tier Funding Suggestions
Maximizing the potential of your club’s tier system finances
Alumni clubs who participate in the UIAA’s tier program are allocated $1250/$500/$250 in the form of reimbursements annually for their club’s events. The intentions of these financial resources are primarily to help your club enhance its events and make events more financially friendly for alumni of all ages. Below are some guidelines and suggested best practices to maximize the potential of your club’s tier system funding. If you have any questions regarding any instance not specifically listed below, please feel free to reach out to Tyler Gagai, Director of Alumni Clubs, at firstname.lastname@example.org for further discussion.
Guidelines and Restrictions
- Tier funding reimbursements cannot be used towards expenses incurred related to NIL expenditures. Alumni clubs who choose to leverage NIL opportunities with student athletes must do so with their own funds.
- Tier funding reimbursements cannot be used for donations to the club’s scholarship fund or another non-profit entity. Recommendations for using funds to benefit your club’s scholarship fundraising efforts are outlined in the section below.
- For Main Quad level clubs, you may request up to $750 reimbursement per event that you host. Please keep in mind that your club’s reimbursement allotment is $1250, so please budget and spend wisely.
- Illini Union and Morrow Plots tier level clubs can request up to $350 and $250 respectively in reimbursements per event
- Your tier funding reimbursement allotments per club ($1250/$500/$250) can be used at your discretion, and don’t need to conform the 4/2/1 number of events that your club will host annually. In other words, if you are a Main Quad level club and your club is planning to host 6 events annually, your club may request reimbursements for each of those events if the total amounts do not exceed the $1250 maximum per fiscal year.
Suggested Best Practices for Use of Tier Funding