account . However , please keep in mind , that the person whose number is being used is personally responsible for paying taxes on the additional interest income reported by the bank to the IRS . The neighborhood association may want to reimburse the secretary or treasurer for this expense .
3 . The Secretary of your neighborhood association along with anyone else who will be signing on the account must sign signature cards . You will then also need the Chairperson or President ’ s signature ( or another designated officer of the corporation ).
4 . If you are a not-for-profit corporation , you must provide a copy of the Articles of Incorporation stamped “ Filed ” by the State of Texas to the bank . If you are not a corporation , bring a copy of your bylaws and a copy of the minutes of your first meeting . You will also be required to identify the names and positions of people who are authorized to conduct business on behalf of the organization .
5 . The bank will provide a card with wording for a resolution authorizing the bank account . The board of the incorporated neighborhood association or the general membership of an unincorporated association must adopt the resolution .
6 . Not all non-profit organizations receive waivers of the bank service charge . Banks may waive or reduce service charges to organizations that provide a necessary public service . The decision to waive the charge is at the discretion of the individual bank .
7 . Personal identification , such as a Texas driver ’ s license or U . S . passport , is required to open any type of account .
8 . Determine your association ’ s type of account . If you are a nonprofit organization and are eligible for a nonprofit account , there may be no charge or a reduced fee for the service the bank is offering . However , you may not be able to choose the type of account you would like . If your association is required to pay for an account , you can choose any account you would like , depending on your association ’ s needs .
BOOKKEEPING
Regardless of the amount of money your organization has , it is important that you keep track of whatever money does come into or go out from your organization . It is a good idea to have an accountant or bookkeeper help you set up a set of books from the start . Then let someone who feels comfortable with numbers and figures take on bookkeeping responsibilities . The sooner your system is set up , the easier it is to keep accurate financial records .
The following system is recommended to help keep your group ’ s records accurate . This is a double entry system . The system provides a record of all money received and where it came from , and all the money paid out and the purpose for which it was utilized .
I . Cash Receipts and Cash Disbursements All money coming into or going out from the organization should be recorded daily ( or whenever you have something to record ). These transactions are recorded in a format called a journal .
Neighborhood Organizational Handbook – Arlington , Texas 15