I am the chairperson of my high school class' reunion committee and we need help with picking a bank account?

Question

I have read info on two options, and need some advice.

The first way to go would be to get a Tax ID number from the IRS since the reunion is a non-profit organization.

The second way to go would be to open an interest free business checking account; I was told that since the account would be opened using one person's SSN, that this is the best way to go as the IRS only looks for bank accounts that accrue interest and that's what they would hold the person accountable for on their taxes (and we don't want that to become an issue)...is that true?

Any suggestions you have would be great.

Thanks!

Anonymous · Accepted Answer

Go with the Tax ID. Ask your banker to help set it up. Normally you open it in the name of the class, not a specific reunion, since you will have reunions every 5 or 10 years. Also normally you make a little bit of "profit", which you keep in the account to use for postage, domain registration, printing, etc. for the next time.

(That is, you have a ball for your 10th in 2009. Come 2014, you'll need to send out 500 postcards to everyone telling them to save the date for the15th, and it is easier if you have "seed" money inthe account.)

Make sure at least two people who are not related by blood or marriage are on the account and authorized to sign checks.

Keep accurate records. If one of your classmates is a CPA, ask him/her to audit your books after the reunion. (Or to help keep them, even.)

====================================

Here is some advice you didn't ask for that I paste every chance I get, hoping no one else will fall victim to the World's Stupidest Disk Jockey.
(See http://www.tedpack.org/cvhs/whyvirt.html for details.)

The most important thing you can do to insure a good time is talk to the DJ before hand. The people who never left town and see each other every week at PTA, soccer practice, poker night etc. are going to want to dance. The ones who DID leave town and flew 1,500 miles to attend are going to want to catch up, and they are not going to want to shout over the music.

The ideal solution, if you can afford it, is to hire two rooms. Unless you are from Beverly Hills High, you won't be able to do that. Having the music "on" for 30 minutes, then off for 30 would be a reasonable compromise. Promise the DJ the same amount of money as if he played all night. Impress upon him the desire of half the audience to talk. Reunions are not the same as dances or concerts. People don't go to concerts to talk. They do go to reunions want to talk. Keep hammering that home to the DJ. If necessary, tattoo it on his forehead backwards and give him a mirror. Appoint a "Quiet time" monitor.

Tell people at the start of the affair what you are doing, so they know. Tell them that you know half of them will be unhappy during the music and half will be unhappy during the quiet time, and you can't please everyone. If you like, you can tell the joke about the mathematician who had one foot in a bucket of ice water and the other in a bucket of boiling water. He said "If you take the average, I'm comfortable".

I hear "It was a nice reunion, but the DJ ruined it" a dozen times a year from friends and family.

Anonymous · Answer

Go with the Tax ID for a non-profit.....Trust me on this one, once you put an individuals ss# on an account it implies ownership and God forbid there is ever an accounting problem, all hell will break loose.

I would also keep a very strict ledger.

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I am the chairperson of my high school class' reunion committee and we need help with picking a bank account?

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