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Successful officers Plan, Organize, and Communicate effectively!

• Officers should make sure group members are aware of SOFO policies and requirements BEFORE they make purchases! 
• Call us early on in your planning process and ask us about payment options given the activity. Give us a broad idea of what you would like to do so we can think of the best solution. 
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• Plan ahead and know your options: debit cards are available so that members of your group do not have to pay out-of-pocket, but are not to be used to reimburse or pay for payments that are contractual.
• Read emails from SOFO@northwestern.edu. SOFO sends emails to student organizations when there are problems with transaction requests and action is needed from the group. We also send emails regarding general information that student officers should know. Failure to read and, when necessary, respond to these emails may adversely affect a group if transactions are delayed as a result.

Officer Transitions

• SOFO can only conduct business with the Organization’s Treasurer and President after they have fully transitioned and attended SOFO training.

A reimbursement is a withdrawal from an organization’s account with the purpose of paying a person back for personal funds used to help facilitate a group activity. 

It should be noted that these reimbursements are not limited to officers of the organization. Non-administrative members may also be reimbursed for personal fund outlays as long as the expenditure is for an authorized group activity and has been approved by the group officers.

Before authorizing someone to spend personal funds, however, officers should inform the person of the restrictions and receipt requirements necessary for reimbursement. This is particularly important, because reimbursements may be rejected without proper documentation and charge specificity.

For federal income tax purposes, all people who provide services for a group can be paid directly by check and subsequently issued a Form 1099-MISC for tax purposes. Reimbursements will not be issued to group members who pay these individuals with their own money. (See Payments)

Documentation

Receipts Requirements:

• Receipts must be less than 85 days old — from purchase date to current date. 
• Receipts should be originals. (Photocopies, facsimiles, packing slips and vendor statements are not acceptable forms of documentation. Neither are handwritten receipts without proof of payment.)
• Receipts must show vendor contact information (name, address and phone number).
• Receipts must provide an itemized listing of the items purchased. (Signed credit card receipts, with the total purchase amount but without an itemization, are not acceptable forms of backup. This ensures that Illinois sales tax and purchases of alcohol or tobacco are not reimbursed.)
• Method of payment must be listed. (Credit card or Cash)
• Proof of payment. (If proof of payment cannot be retrieved and was paid by a credit card, a statement showing the charges as well as the person’s name who is getting reimbursed, will be sufficient.)
• SOFO cannot reimburse Illinois sales tax; °ÄÃÅÁùºÏ²Ê¿ª½±¼Ç¼ is exempt from Illinois sales tax
  • To obtain a tax exempt form, stop by our office prior to making a purchase and provide us with the name of the vendor, name of the person who will be purchasing, and date of purchase. Tax exempt forms may be used for organizational purposes only.
  • We WILL only reimburse IL sales tax at a restaurant if it was dine-in.

If a vendor’s receipting policy does not comply with the receipt requirements listed above, the purchaser should request that the vendor create a receipt on the company’s letterhead stationery. This letter should itemize the items purchased, specifying unit price and quantity sold. It should also state that the organization is exempt from paying Illinois sales tax. The words “PAID IN FULL” and the method of payment must be accompanied by the manager’s signature and title.

Cell phone usage is generally not reimbursable. 

Reimbursements & the Internet

The speed and convenience of on-line shopping can be very tempting, but care should be taken when choosing with whom you do business. Reimbursements will not be made for losses due to misrepresentation or fraud online.

Online Receipt Requirements:

The receipt requirements for online purchase reimbursements are the same. You should treat your order and shipping confirmation(s) as your receipt.

When funds due can be anticipated and documentation is available before the transaction is complete, a  “payment” is appropriate to pay for the requested goods or services. A payment can be in the form of a credit card payment made with the SOFO corporate card.  Payments may be used by student organizations to meet monetary obligations associated with invoices, club registrations, dues, services rendered or contractual agreements.

Documentation

Payment Invoice Requirements:

1. Original company invoices. (Statements, packing slips, sales orders, estimates, and faxes will not be accepted as backup. All invoice numbers should be included.)
2. Invoice must have the vendor contact information listed.
3. No IL sales tax. (Officers can obtain a tax exempt letter from SOFO)
4. Invoice is not paying for a contract. (Service/Rental/Individual Service) See Below.
5. Registration and Dues: Backup must include the original registration/dues form as well as the number and names of the members being registered.

Scholarship Payments

Organizations wishing to award scholarships should work with the NU Financial Aid office.  Keep in mind that scholarships are financial assistance intended to support educational activities within a formal educational program. 

If a group wishes to provide financial support for other purposes, the support is not considered a scholarship.  In such cases, the group will need:

• A voucher, marked as a Payment transaction, with the recipient and the academic institution that the recipient is attending listed on the PAY line.
• A memorandum must be typed that formally names the recipient and the amount of the assistance. The memo should also include a description of the purpose of the financial assistance, the method used to determine the amount of the funding, and be signed by both officers and the group’s advisor.
• If the recipient is employed by the University, a Special Pay/DCFS or Additional Pay form.  The forms must be signed and dated in black ink.  Forms with specialized fonts instead of signatures will not be accepted.
• If the recipient is not employed by the University, a W-9 signed and dated within the calendar year that the payment is to be made.  W-9 forms must be signed and dated in black ink.  Forms with specialized fonts instead of signatures will not be accepted.  Since W-9s may contain Social Security Numbers, they should be treated with great care and not transmitted in an unsecured digital format nor across unsecured servers.

Questions regarding this policy should be directed to SOFO or the NU Financial Aid office. Scholarships are considered a component of financial aid and must be reported to the Financial Aid Office at the recipient’s college.

Contract Payments

A contract is used for payments for services identifying terms and conditions, personal services provided by an individual who is not employed by °ÄÃÅÁùºÏ²Ê¿ª½±¼Ç¼, as well as rentals. Contracts must be completed in ink and should be submitted to SOFO prior to services being provided. Student officers may not sign contracts. To do so would make the officers personally responsible for fulfilling the terms of the contract and remove the University from having any responsibility/liability with respect to the same. 

(See Contracts section)

The Student Organizations & Activities (SOA) website has sample letters, terms and additional information to assist you through the contract process.

• Contract - An agreement with specific terms between two or more persons or entities in which there is a promise to do something in return for a valuable benefit known as consideration. 
  • Note: If an invoice involves terms and conditions it is considered a contract and should be reviewed and signed by a University Official.
• Contract rider - An attachment to the original contract that clarifies the additional terms of the agreement. Used for °ÄÃÅÁùºÏ²Ê¿ª½±¼Ç¼ specific terms.

All ASG-recognized student groups are required to abide by the contract procedures of SOA. All other groups, seeking guidance with respect to contracts, should read the following procedures and contact SOA for further assistance at (847) 491-2350.

Important Please Read

• Students are not allowed to sign contracts. Any student who signs a contract will be financially responsible for paying the amount agreed in he document. The university is not legally obligated to pay any contract not signed by an authorized university official.
• If a student organization member signs a contract, the organization has committed financial misconduct.
• Allow three weeks to complete the contract procedure.
• Your organization cannot publicize, sell tickets or make travel arrangements until both parties sign the contracts.
• Start planning early.

Contract Guidelines

Because a contract is between the University and the person(s) contracted, there are five preliminary items to keep in mind:

1. Students may not sign contracts.
2. An authorized University Official must sign all contracts. (This individual is not the groups advisor)
3. Personal funds should never be used to pay for contracted services. Under no circumstances will they be reimbursed.
4. All contracts for individuals must be accompanied by a pen-to-paper signed and dated W-9.
5. A contract rider is need for any on-campus event.

A Contract Should Be Used For:

• Services provided by individuals. A contract must be used even if the person is not compensated for their appearance, performance, or service.
• Any service provided by a company that involves terms and conditions.
• Renting an off-campus venue for an event.
• Renting a vehicle for students. (Limo, U-Haul)
• To purchase group tickets for off-campus events or shows (Broadway in Chicago, Great America, Chicago Cubs, Dave and Busters).
• Outside caterer, sound/light company, security firm, ambulance service, and equipment rented for the event.
• A corporate sponsorship.
• Middle agent agreement to pay a “finders fee” in securing the act for the school.
• A co-promoter agreement when a promoter co-produces a concert with the school.

When booking speakers, artists and other performers, there is a specific contract approval that must be followed. The process was developed to provide legal and financial protection to student organizations in their efforts to sponsor student activity events.

The following guidelines are not legal advice and should not be the sole source of your knowledge concerning the use of contracts. If you or your organization has any legal questions concerning contracts, please contact your advisor or Student Organizations & Activities for additional assistance.

Guidance on Contributions Related to Student Organizations (PDF)