Registered Campus Organization Accounting

During the 2021-22 academic year, SEAL began the process of phasing out the RCO accounting services and management of RCO Trustee accounts (also known as OSL trustee accounts). In order for RCOs to complete this process: 

1. Fill out an Accounting Request form and select “Closing Account,”
   • For balances under $250, a personal check can be written to one of the approved RCO officers on Shoreline* or to an organization account name off-site. *Note: Checks cannot be made out to yourself.
   • For balances over $250, the check must be written out to an organization (i.e. organization account name, regional/national parent organization, or campus-affiliated department if applicable).
2. After the Accounting Request has been submitted, it enters the workflow. Once the workflow has been completed, a DocuSign form (sample below) will be sent out via email to the submitter and an additional approved RCO officer as listed on Shoreline for approval.
   • Both will agree that the funds are organizational funds and should be used accordingly. 
   • The DocuSign form must be completed within 5 business days upon receipt or the request will be canceled. 
3. The check will be processed and the RCO trustee account will be closed. Checks will be distributed via the method selected on the request form. *Note: If a printed check request indicates a large sum (i.e. $1000+) we ask that a representative be prepared to pick up the check in person.

Sample DocuSign Form:

I, _____________________ and _____________________, Registered Campus Organization (RCO) officers as listed on Shoreline for _____________________,  understand the following:

• I am aware that I am personally liable for the organization's finances. As an officer, I will be billed personally through BA/RC for any shortages or delinquent funds that may be incurred after funds are moved out of my RCO Trustee Account. 
• I do not believe that there are any outstanding bills that need to be paid from my RCO Trustee Account, and if bills are assessed then I will be billed personally.
• I must use university-granted funds as intended by the department in line with university procedures.  
• In order to close my RCO Trustee Account one of the following conditions must be met: 
• For account balances under $250, a check can be written to one of the approved RCO officers on Shoreline* or to an organization account name. *Note: Checks cannot be made out to yourself and legal names must be used for the payee information.
• Account balances over $250, and the check must be written out to an organization (i.e. organization account name, regional/national parent organization, or campus-affiliated department if applicable). *Note: The Organization Name must match what is one the bank account (or banks will not accept the check)
• Documentation of a bank account in the name of the RCO/regional/national organization may be requested for balances over $250 if it was not previously supplied in the Accounting Request Form on Shoreline.
• Funds in your RCO Trustee Account are restricted to the organization's use only and may not be used for personal benefit.
• The processing time for completing this transaction is dependent upon both individuals completing the DocuSign form. 
• Student Engagement & Leadership is not responsible or liable for lost checks or the misuse of organizational funds. 
• I understand I must be logged in and a verified UCSB affiliate to complete this form.

I certify that I am an officer for this RCO, I understand my responsibility as outlined above and I authorize this account closure. 

Name: _______________    Signature: ____________________    Date: __________________

Name: _______________    Signature: ____________________    Date: __________________

You will receive a notification once your accounting request has been processed via Shoreline.

Processing Time: 14 business days
Mailing Time: 7-14 business days

Prior to agreeing to support an RCO, SEAL recommends departments use Shoreline to confirm that the organization has completed annual registration requirements with SEAL. If the RCO completed these requirements, it will populate in the group search bar. It is also recommended that the department has a conversation internally with business officers to develop a workflow process to support RCO events. SEAL is able to offer suggestions, but the ultimate decision will remain with the department. 

Once a process has been determined and the department is ready to move forward and receive funds formerly housed within the RCO trustee account, SEAL will help facilitate moving the funds to the department. Checks will be made out to the applicable payee as determined by the department for the business team to deposit.

For additional guidance and/or if the department would like additional guidance on how to co-sponsor an RCO event please reach out to Financial Analyst Krystalyn Llanes at krystalyn_llanes@ucsb.edu.

Registered Campus Organizations (RCO) are NOT legally authorized to use the University’s name (UCSB), TAX ID, or other information to open an off campus bank account. When considering RCO financial needs, think about: 

• A plan for continuous access from year to year (the need to return to the bank to transition officers).
• Who has access to transactions/funds, and if there are internal structures in place to hold people accountable.
• How comprehensive records for each organization, including documentation for transactions, is stored and passed down from leader to leader.
• Accounts could be audited to ensure integrity.

Your organization may consider working with a financial institution of your choice off-campus. Work with a banker (not a teller) directly to explore your options and find the option that best suits your organizational operation's needs. Your organization is responsible for all the tax filings and liability and can become a registered entity with the IRS (https://www.irs.gov/). 

When choosing a bank, here are some things that are important to consider: 

• Accessibility & Convenience | Where are local branches/locations, how is the customer support, where are available ATMs, etc.
• Fees | What are the startup costs, are there minimum balances requirements, does they charge transaction fees, etc. 
• Ease of Access for Multiple Users | Are there online banking restrictions, what does activating debit card(s) look like, etc. 

UC Santa Barbara, Student Engagement & Leadership cannot legally provide fiscal advising. Please use the information above to explore your financial planning.

Here is a brief step-by-step example of what one RCO did to open an off-campus account. 

1. The RCO obtained an EIN with the IRS to open an account with a national bank. An electronic copy was available instantaneously and a paper hardcopy took about 4 weeks. *Note: When making the “legal name” for the organization, no RCO can use “UCSB” in the name (ex. Vietnamese Student Association at Santa Barbara).
2. A set of bylaws for the RCO is required by the bank. This must be titled as “Bylaws of _______” for the bank to accept it and also must have the signatures of four (4) officers. 
3. One officer of the organization must be the person to open and remain as the main person on the account, known as the account secretary. This is a financial term and does not require that the RCO Secretary be this person. Other officers are able to be added to manage account activity. A government-issued ID and social security number were required to open the account. *Note: Many RCO Presidents function as the account "secretary" for banking purposes. It is recommended that multiple officers are signatories on the account.
4. Once the account is opened, pay attention to any applicable minimum balances/maintenance fees for the account. For example, this business checking account required a minimum daily balance of $2,000 to not incur account maintenance fees. 
5. If the owner(s) of the account are graduating and/or leaving the organization, be sure to coordinate with the bank and applicable officers to ensure that the ownership of the account is transitioned properly.  

Most banks require a tax identification number to open a bank account with them. RCOs are NOT legally authorized to use the University’s name (UCSB), TAX ID, or other information for banking or tax purposes. 

Applying for an EIN:
To establish an organization's bank account, receive funds from businesses, and/or accept donations your RCO may be asked to provide an EIN (Employer Identification Number) or TIN (Tax Identification Number/Tax ID). Student organizations are not eligible to use the University of California, Santa Barbara tax ID number for the purpose of setting up a student organization bank account or accepting donations. It is recommended that the organization apply for an Employer Identification Number (EIN) from the IRS for use.

Important Notes

• When making the “legal name” for the organization, no RCO should use “UCSB” in the name (ex. RCO name at UCSB or UCSB’s RCO Name).
• When choosing the business entity type, review definitions of business identity directly on the application. If applicable, also view "Additional Types, Including Tax-Exempt and Governmental Organizations."
• Once the RCO has applied for an EIN, the submitter will receive an electronic confirmation immediately upon submission. Make sure to save the EIN, as well as all the documentation that comes with it and keep it with other organizational important documents for reference.
• RCO officers are responsible for ensuring that proper state and federal tax filings are made on behalf of the organization, where applicable.
• RCO officers are responsible for updating the IRS with Change of Address information or Responsible Party information.
• If the owner(s) of the account are graduating and/or leaving the organization, be sure to coordinate with the bank and applicable officers to ensure that the ownership of the account is transitioned properly.  

RCOs may choose to apply for tax-exempt status under IRS Section 501(c)(3).