Skip to main content

General Finance Expectations

As Registered Student Organizations (RSOs) are viewed as individual units, they are responsible for managing their own finances responsibly. To ensure financial transparency and sustainability, RSOs should:

  • Maintain at minimum a zero-sum budget, where income equals expenses.
  • Develop a semesterly and/or annual budget to guide financial decisions.
  • Keep an internal ledger to reconcile with official account statements.
  • Store copies of all financial documents (receipts, invoices, etc.) and establish a clear process for recordkeeping and information transition between officers.
  • RSOs leaders should never put income from their RSO into a personal account
    • RSOs should not use individuals Venmo, Paypal or Cashapp account as they are commonly tied to an individual rather than an organization.
  • Organizations should implement safeguards to prevent theft and fraud.
    • Access to organizational funds should never be held by just one individual without oversight.
    • All financial transactions should be transparent and known by at least one other member.

On-Campus Accounts

Registered Student Organizations have the option to have an on-campus RSO financial account. This account is managed through a partnership of the RSO and the RSO Business and Financial Services (RSOBFS). Upon request any RSO may create an on-campus financial account. Accounts must be renewed annually. The RSO Policy Handbook has different sections that can assist an RSO in using their on-campus account, including:

Tax Exempt Status

Registered Student Organizations are considered a separate entity from Michigan State University and DO NOT fall under MSU’s tax exempt status.  Therefore, student organizations should not use MSU’s Tax ID or presume they are tax exempt. To learn more about obtaining an Employer Identification Number (EIN) please refer to the IRS.

Corporate Sponsorship

RSOS receiving assistance from commercial establishments must make it clear on all advertising that the event is sponsored by the RSO with only “assistance from” the outside group. The commercial product or company may not be advertised in a manner greater than the activity and/or the sponsoring RSO. No alcohol related sponsors are allowed. No sales may occur during the sponsorship. Questions should be referred to the Office of Spartan Experiences, Involve@msu.edu.

Fundraising/Donation Drives

There are many ways that RSOs are able to fundraise both on and off-campus. Many off-campus areas will require an RSO to submit an EIN to participate. For on-campus fundraisers there are a few limitations such as food being sold must be individually wrapped and from either an approved/licensed food vendor or purchased from a store that has pre-wrapped items. Many fundraisers that are hosted on campus would also need to be approved by the Board of Trustees (Ordinance 27.00)

Raffles, Gifts, and Prizes (link)

Registered Student Organizations (RSOs) must follow specific rules when hosting activities involving prizes or games of chance. Bingo, raffles, and certain drawings require a license from the State of Michigan’s Charitable Gaming Division, even if no fee is charged to participate. Contests are merit-based competitions and generally do not require licensing, while giveaways (swag) involve distributing free items without a chance element. Any event with a game of chance tied to payment or consideration—such as 50-50 drawings, paid entry with prize drawings, or drawings for completing tasks—counts as a raffle and must be licensed. Raffle applications take about eight weeks to process, and RSOs must obtain their own licenses; MSU cannot assist.

Best practices include keeping gifts/prizes under $75, recording recipients’ names and emails for reimbursements from on-campus accounts, tracking gift card distribution, and documenting the use of donated items. RSOs are advised to ensure equitable prize distribution and consult their adviser when planning. A copy of the raffle license must accompany the Event Planning Form to confirm authorization.

Off-Campus Financial Accounts (link)

Registered Student Organizations are allowed to have off-campus financial accounts. MSU is not responsible for the management or liable for any misuse of these accounts.

RSOs will need an Employer Identification Number (EIN) to open an off-campus account of which MSU cannot assist in obtaining as this is completed by the IRS. EIN information must be passed to future leaders, as the RSO Office does not retain it.

The RSO Office does have a working relationship with MSUFCU that aids RSOs in creating accounts at the MSUFCU Offices located in the MSU Union and at 4825 Mt Hope Rd (corner of Farm and Mt Hope) as they have staff that are experienced working with RSOs as well as have access to Involve@State to review Responsible Party members.

RSOH