University Accounting System: The best way to handle chapter cash flow is through the university accounting system, and the mechanics of this vary from institution to institution. The end result is that initiation fees come to the National Office in the form of a university check. Chapters may need to register as official student organizations in order to take advantage of this, and other benefits.
Chapter Bank Account: If there are no regulations barring it, the next best, and perhaps simplest, method is for the chapter to open its own non-interest-bearing checking account under the auspices of the chapter advisor. New members may then pay their initiation fees into the account and a single check may be drawn on it and sent to the National Office. The bank account also makes it convenient for chapters to deposit any chapter membership fees they may collect over and above the national initiation fee and to use these funds for their own programs, receptions, prizes, and so on. Grants to the chapters from the National Office (See the section on Chapter Activity Grants) would also be deposited in the account.
IF A CHAPTER DOES OPEN ITS OWN BANK ACCOUNT, THE NAME ON THE ACCOUNT MUST INCLUDE THE NAME OF THE CHAPTER, NOT SIMPLY "PI SIGMA ALPHA."
Remember that any interest a bank account earns will be reported to the IRS under whatever Taxpayer ID number was used to open the account, and the resulting paperwork burden for the chapter will almost certainly not be worth the amount of interest earned. Chapters should look for a bank offering a no-fee, no-interest checking account.
Chapter Advisor as Banker: When neither of these methods is possible or suitable, the chapter advisor may act as banker, collecting fees from the students and sending a personal check or Money Order to the National Office. This should be considered as a last-resort procedure for several reasons: it puts a personal burden on the individual chapter advisor instead of keeping the financial part of the advisor-student relationship at arm's length; it deprives the chapter members of a good opportunity to learn fiduciary responsibility and practice in managing the finances of an organization, however modest; it does not provide a structure for chapters to receive and spend grant money; it complicates record-keeping and reporting; and it does not bolster organizational continuity.
Money Order: The National Office is happy to accept money orders. As with checks, all initiation fees must be combined into a single money order.
