University of Wisconsin–Madison
“Wisconsin” is seen carved into a sign with red tulips in the foreground.

Finances

Managing the finances of a Registered Student Organization (RSO) is essential for the organization’s ability to function efficiently and effectively. Additionally, the Office for Student Organizations, Leadership & Involvement (SOLI) financial regulations for RSOs require your organization to maintain accurate and complete financial records of all receipts and expenditures.

To get started, considering creating and keeping an RSO budget document to balance out income revenue (e.g., membership dues, fundraising, grant funding) and expenses (e.g., printing, travel, event costs).

The rest of this page will guide you through some of the most common money-related topics for RSOs.

Banking

Your RSO may need to set up a bank account to help manage its funds. Read the tiles below for information on how to do this and common pitfalls to avoid.

When does an RSO typically need to open a bank account?

In the simplest sense, your RSO may need a bank account if it has money coming in and going out. RSOs are not allowed to use a member’s personal account; instead, they can open an account for the organization.

Some types of funding or sponsorship on campus may have extra rules regarding what money can or cannot be placed in an RSO’s bank account. If your RSO is a formal part of University Housing, the Wisconsin Union Directorate, Rec Well, or another department/office on campus, make sure you check with your university contacts in that department/office about how finances must be handled. Additionally, if your RSO receives funding from ASM or other grant programs, make sure to check in with your finance contact at ASM or the grant managing department for any financial rules your RSO has to follow.

A consistent rule to remember: department funding dollars may not co-mingle with money in a bank account maintained by an RSO.

What does an RSO typically need to open a bank account?

First, identify the bank you’d like to open your account at. There are a few options near to campus.

In addition to standard requirements from a bank to open an account, your RSO may need:

  • A tax ID number, also called an Employer Identification Number (EIN).
  • A document proving the existence of your RSO. Frequently this is a letter that SOLI can provide confirming that your RSO is registered and recognized by UW-Madison.

When you open a bank account, you will likely have to go to the bank to fill out a variety of paperwork. Make sure to investigate what documentation (e.g., driver’s license) the bank might require at your appointment. You’ll likely find this on the bank’s website, but you can always call if you have questions.

Employer Identification Number (EIN)

An EIN, also known as a Federal Tax Identification Number, is a nine-digit number assigned to your organization by the Internal Revenue Service (IRS). The United States Treasury Department and the IRS require an organization to disclose their EIN when opening any type of deposit account with a financial institution.

If your student organization is maintaining the same banking account from previous years, continue to use the EIN previously assigned to your organization by the IRS. Do NOT apply for a new EIN each year. However, each year you must inform the IRS of the name of the new primary contact person and any other information that has changed, such as the name of your organization or the address.

Changing the Address or Responsibility Party for an EIN

When an EIN is created, a responsible party (an individual who ultimately owns or controls the entity or who exercises ultimate effective control over the entity) must be affiliated with that EIN. This individual should be updated with the IRS as elections and transitions take place. In order to change the responsible party affiliated with an EIN or the RSO’s address, complete the Form 8822-B (Change of Address or Responsible Party).

Want to develop your financial knowledge further?

Checkout Badger$ense for workshops for RSOs related to financial education and peer financial coaching for individual students.

Fundraising

Taxes

In order to meet minimum eligibility as an RSO, a group must be not-for-profit, which means no individual or group may profit from the work/activities of the RSO. However, please be advised that “not-for-profit” does not mean that the RSO is automatically exempt from state or federal taxes. Rather, an RSO must also apply for non-profit status with the IRS to be tax exempt.

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Does my RSO need to file taxes annually?

  • Has your RSO taken in any funding (dues, donations, proceeds from fundraisers, etc.) during the past calendar year?
  • Does your RSO have an open account at a bank?

If the answer to either of these questions is yes, then you should file the appropriate form with the IRS. If the answer to BOTH questions is no, there is likely no need to file taxes.


Organizations should file the appropriate 990 series form annually by the 15th day of the fifth month after the close of your organization’s tax period/fiscal year (usually May 15th).

Appropriate 990 series Forms based on organizational annual revenue:

  • Less than $50,000 | 990-N (e-postcard)
  • $50,000-$200,000 | 990-EZ
  • More than $200,000 | 990

Visit the IRS website for more information about Federal 990 Series Forms and associated documents.

Benefits of non-profit status are: (1) exemption from federal and state income tax; (2) ability of certain non-profits to make purchases without paying state sales tax; and (3) ability for certain non-profits to receive tax-deductible contributions.

However, in most cases SOLI DOES NOT encourage RSOs to apply for federal non-profit status because: (1) the process requires annual paperwork and most RSOs will not need formal federal or state non-profit status; (2) many RSOs are ineligible for 501(c)(3) status and thus will not be able to receive tax-deductible contributions or avoid sales tax; and (3) securing federal non-profit status for tax purposes is a complicated process, which requires an understanding of the technical definitions and requirements of non-profit organizations for tax purposes.

If your RSO, as its own entity, wishes to apply for federal non-profit status, contact the federal IRS and the Wisconsin Department of Revenue, or consult your private tax advisor.


Additional Information about Tax Exempt Status

Is your RSO primarily social, recreational, or sport based in nature?

  • If so, you are likely a 501(c)(7) organization and cannot accept tax deductible donations or be exempt from sales tax. (This is the majority of RSOs.)

Is your RSO focused on social welfare, lobbying or a special interest group?

  • If so, you are likely a 501(c)(4) organization and cannot accept tax deductible donations or be exempt from sales tax.

Is your RSO a charitable, religious, scientific, or educational mission driven?

  • If so, you are likely eligible for 501(c)(3) status.
    • If your organization’s yearly gross receipts are less than $5,000, there is not a need to file for tax exempt status.
    • If your organization’s yearly gross receipts are greater than $5,000 you must file for tax exempt recognition with the IRS. Completion and acceptance of tax-exempt status will result in a “letter of determination” validating the status of the organization. It is also recommended that you retain the services of a non-profit tax services professional.

In all cases, your organization should still file a 990 series form annually.

RSOs that are exempt from federal income tax under any of the above categories are also normally exempt from state income tax. For additional details on potential exemption from state sales or use tax in Wisconsin, see the Wisconsin Department of Revenue website.

RSOs are exempt from collecting state and county sales tax on “occasional sales” of items sold if the RSO:

  • Is considered a nonprofit organization, per the Department of Revenue’s definition. For this purpose, the definition of “non-profit” includes most 501(c)(3), 501(c)(4) and 501(c)(7) organizations.
  • Does not have or is not required to have a seller’s permit.
  • Entertainment is not involved, or, if entertainment is involved, either no admission is charged, or all payments for entertainment at the event add up to less than $10,000.
  • Has had 75 days or less of sales in the calendar year OR has had earned less than $50,000 in sales in the calendar year.

If a particular sale does not meet the above criteria, the RSO is responsible for collecting and remitting state sales tax to the Wisconsin State Department of Revenue. For additional information about sales tax, visit:

RSOs are not automatically eligible to receive tax-deductible contributions and instead must qualify for federal 501(c)(3) status. RSOs that do not qualify for 501(c)(3) status are obligated to inform potential donors of the non-deductibility of any donations. In unusual circumstances and subject to appropriate university authorization and approval, a university department may be willing to accept a donation on behalf of an RSO (likely via the UW Foundation), or with respect to an event sponsored by an RSO.

  • In that case, the donation would be deductible to the donor since it is made to the university, and not the RSO.
  • RSOs must be very careful to make sure the department is authorized and has formally agreed to accept the donation in these circumstances, since there are university forms that need to be completed by the department and receipts that must be provided by the university to the donor in order for the gift to be completed.

The Office for Student Organizations, Leadership & Involvement and its staff are not licensed tax professionals and do not have extensive knowledge or training related to tax statuses or codes. Please consult with a private tax advisor in the event your organization may have additional questions about tax filings, non-profit status, or other tax related information.

Registered Student Organization Tax Webinar 2026 (transcript)
Guest Speaker: Amanda VanNatta, Certified Public Accountant, Wegner CPAs

Recording of the RSO Tax Webinar hosted in Spring 2026. Only those with a netID will be able to login and access this video channel.

Law & Entrepreneurship Clinic, University of Wisconsin Law School

The LEC offers free legal services to help entrepreneurs and small business owners realize their potential. Potential clients will be interviewed to evaluate their legal needs. Should the LEC decide to provide legal services, a letter of engagement will be entered into between the client and clinic defining the scope of services. You can contact the LEC at entrepreneurhelp@law.wisc.edu.


Marquette Volunteer Legal Clinics

The MVLC can assist organizations with their legal questions. Advice ranges from corporate, tax, employment and intellectual property questions to the application for nonprofit status. MVLC is a free legal service for small and mid-sized Wisconsin 501(c)(3) organizations.

Grants

The following tabs list grants that typically fund RSO events and activities. Contact a particular funding resource to inquire if funds are still available and also to obtain eligibility criteria and application guidelines.

Associated Students of Madison (ASM) Grants – ASM has four grants available to RSOs to help plan events, travel to conferences, and accomplish daily functions for their organization’s mission. ASM grants are funded by UW-Madison students’ segregated fees. The grants are allocated by a student-run Grant Allocation Committee in a viewpoint neutral manner. These grants are available to any RSO that is in good standing with SOLI.

Vice Chancellor Funded Grants – There are three grants that are funded by the Vice Chancellor’s Office and then managed by three difference offices. These three grants are to support events and programs that student organizations are hosting and are open to all students.

All RSOs will ONLY be eligible for funding from the Vice Chancellor Funded Grants (Global Badger Experience Grant, Multicultural Council Grant, or the Wisconsin Experience Grant) IF:

  1. The RSO has already received an ASM Event Grant for an event that semester, OR
  2. The RSO has already applied for an ASM Event Grant for a program that semester and is on the wait list for an ASM hearing, OR
  3. The RSO ONLY seeks funding for something ASM cannot fund (e.g. food or a closed event), OR
  4. ASM is out of funds for the academic year

Additional Funding Sources – The tabs also include a handful of additional funding sources available to student organizations wishing to put on programs and events.