Financial Policies and Guidelines
Outside Bank Account Policy 2002

The Treasurer of MIT announced that as of July 1, 2002 all funds collected on behalf of the institute (including money for student groups, departments, labs and centers) must be managed internal to MIT.

Student organizations exist and have the ability to fund raise and solicit donations because they are a fundamental part of the programmatic aspects of the Institute as a whole. Student organizations that are recognized by MIT are given the autonomy and responsibility to spend their funds as the organization sees fit (providing they do not break Institute policy). All funds and organization records/receipts are held within a secured area in the Student Activities Finance Office (SAFO). In addition to SAFO, only the 6 financial signatories listed by the student organization have access to the information.

It should be noted, however, that all student organization funds are Institute funds, authorized for particular student activities, and can not be deposited in non-MIT accounts. MIT is a Massachusetts General Laws Chapter 180 charitable corporation and, as such, is subject to oversight by the Attorney General's office in several areas including the use of a MIT's funds consistent with its educational and charitable mission. This includes those funds granted for use by the Institute to student organizations on an annual basis, funds that have been raised by the respective student organizations as a result of individual fundraising efforts, fees that may have been charged for membership, revenue received from running organized events and through any other means. These funds are to be used by student organizations and their students while at the Institute, and only for approved MIT educational and related purposes, and not for non-MIT activities. Any unused funds will remain with the Institute.

Some organization leaders have talked about the possibility of separately incorporating their organizations. This is not something MIT will support. Organizations may not use the MIT name or Tax ID number in doing so. They may not represent themselves as being an MIT activity or being in any way affiliated with, or part of, MIT in any way. There would have to be a clear distinction between the business of the corporation and the business of a student organization (should it still exist on campus). The business of the corporation must have a greater audience/participation than simply MIT. Student organization funds may not go directly to the outside entity. Free use of MIT facilities or any MIT administrative services are not available to support unaffiliated activities. Support for such unaffiliated organizations must come solely from sources such as income from events conducted off the MIT campus, membership dues and gifts solicited from donors (which would be tax deductible to donors only if the organization applied for and maintained separate tax-exempt 501(c) 3 status under the US Internal Revenue code), none of which may be presented as in any way as connected to or affiliated with MIT.

In addition, such entities require annual filing and reporting of Federal and State taxes (including the filing of 1099's for payments to individuals), submission of annual reports to the state, and filing other records with the state. This would be the sole responsibility of the organization and MIT would not offer any support or advising with regards to these requirements.