Student Group Finance

Financial Management  

Student Groups are given authority and responsibility to spend funds as they see fit within the confines of state and federal laws. 

Policy on The Payment of Bills Owed by Student Groups to University Departments  

1. Payment in advance: Student Groups ordinarily are expected to pay in advance for services provided by University departments. 
2. Charges: Should the Student Group not be able to afford advance payments, the Student Group may be permitted to charge for services provided by University departments only with the written permission of the Student Center staff. It is understood that in providing such permission, the Student Center staff does not guarantee payment but does certify the ability of the Student Group to pay. In cases where this ability is in doubt, student or alumni guarantors will be required to sign a contract with the University, which will hold them individually liable for any debt incurred. In the case of student guarantors, any amount overdue by 60 days will be placed on their term bills. Alumni guarantors will be required for charges that are likely to exceed $500. In those cases, the alumni guarantors will be asked to provide a certified check to the University, which will be held as security against the Student Group’s debt. 
3. Guarantors: Guarantors will be asked to sign the following agreement:  
   1. To whom it may concern: We individually assume responsibility for all expenses incurred by [Student Group]. In regard to University bills, we acknowledge that we understand the University policy that students will not be permitted to register for the fall or spring term until all debts are paid. In addition, a student otherwise entitled to receive their degree will not receive it until all debts are paid to the University.  
4. Annual Registration: Student Groups will not be permitted to renew annually unless all debts are paid, or an agreement is made with the approval of the Student Center Staff, setting forth a schedule for the Student Group’s payment of its debts.   

Relation to Outside Organizations, Contracting, and Sponsorship  

Student Groups must maintain local autonomy. This means that they must have no institutional connection with outside organizations and that Harvard University and Harvard Griffin GSAS require Student Groups to maintain local autonomy, having no institutional connections with outside organizations. All Student Group policy decisions must be made by the Student Group alone without obligation to any outside organization.  

Moreover, non-Harvard groups may not sponsor events at Harvard by using Student Groups as a vehicle to appear on campus, gain access to Harvard spaces, or represent a partnership with the University.  

If a Student Group should sign a contract or agreement with a non-Harvard entity, the group can sign ONLY on behalf of the Student Groups. Student Groups DO NOT have authority to sign contracts on behalf of Harvard University or Harvard Griffin GSAS. If a Student Group fails to meet its contractual obligations, neither Harvard University nor Harvard Griffin GSAS will assume those obligations. 

It is recommended that Student Groups require that any contract entered into by the Student Group be signed by two members, one of which should be an officer in the Student Group. 

To make this clear to third parties, any contract signed by a Student Group must bear the full name of the Student Group and must state the following:  

“The parties hereto agree and understand that neither Harvard University nor the Harvard Griffin GSAS is a party to this contract and neither is responsible under any circumstances for performing any obligation of this contract.”    

Student Groups should be cautious about cosponsoring on-campus events with external or unrecognized organizations (e.g., nonprofit organizations, businesses, independent contractors) and should be thoughtful about collaborating with unrecognized Student Groups on campus. Any employment recruitment events should be coordinated in conjunction with the Mignone Center for Career Success (see Events with Employers).  

Honoraria  

Student Groups may offer Honoraria to guests who perform a service for the group. One important factor is whether the recipient of the Honoria is a foreign individual. If so, Student Groups should consult the Harvard University Honorarium Policy for Foreign Individuals, tax information from the Office of the Controller, and policy information from FAS Financial Policy Office. 

Gift Policy  

Harvard University has a strict gift policy for employees that Student Groups need to follow when giving gifts to faculty or staff. See the Gift and Celebratory Events for Employees and Nonemployees on the Financial Policy Office website and the Gift Taxability Table. 

Separation of Personal and Group Funds  

Student Groups must keep their funds separate from the personal funds of their officers or members. Student Groups are not allowed to use a personal checking or savings account for Student Group funds. Funds should be deposited in a checking or savings account in the name of the Student Group.  

Bank Accounts  

To receive funds from Harvard University (including the GSC), Student Groups need a Student Group bank account.   

Student Group bank accounts must be at the Harvard Federal Credit Union. To open an account, a group will need a Tax Employer Identification Number (EIN) issued by the Internal Revenue Service (IRS). See this news article on Student Group banking. 

Student Groups that lose their recognized status may lose the funds in their Student Group bank account. Massachusetts law requires that after three years, unclaimed property needs to be reported and remit to the Commonwealth.    

Student Group Salaries  

Earnings of any Student Groups should not be given to individual members. Some Student Groups pay members for services performed by those members. Student Groups wishing to pay or provide other forms of remuneration to individual members must first receive approval from staff at the Student Center at Harvard Griffin GSAS. Payment is expected to conform to the going wage in student employment, although special consideration may be given to Student Group leaders.  

Fundraising  

Student Groups need the permission of the Student Center staff to conduct fundraising in any form. This includes raising funds from alumni or other individuals, businesses or corporations, foundations, government grants and contracts, and special events (on or off campus). Before making an appointment with the Student Center staff about fundraising ideas, Student Groups must develop a project budget for the specific program or event they are planning. Project budgets should include both projected expenses and income.  

Please note: Harvard Griffin GSAS and Harvard University coordinate and limit solicitation of alumni and certain corporations and foundations for funds to support basic needs of the University, and these should not be assumed to be an easy source of funding. Any request for funds from alumni, Harvard Griffin GSAS, or Harvard Federal Credit Union, and certain corporations and foundations requires prior approval from the Student Center staff.  

Please keep in mind the following guidelines as it pertains to fundraising:  

• The purpose for which the funds are raised must be consistent with the purpose of the recognized Student Group. 
• Funds must be used for the specific event or purpose for which they were raised.  
• Funds should be given directly to the Student Groups.  
• It is generally better to receive in-kind donations than funds. 

Request to Review Student Group Finances  

While Student Groups are responsible for their own finances and for keeping their own financial records, under the conditions of Registration, Student Groups may be asked to present its financial reports to the Student Center staff.    

Student Groups should consult the Harvard University Risk Management & Audit Services for best practices.