Memberships Paid by University Funds
| Effective: | 08/24/10 | Approved By: Senior Associate Vice President for Financial Affairs and Chief Financial Officer | |
| Revised: | 12/08/23 |
For Assistance Contact: Assistant Vice President for Supply Chain
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Purpose/Scope
This guideline describes requirements and procedures related to:
- The authorization of membership fees as an allowable expense using UTSA funds; and
- The administrative processes for documentation and payment of authorized membership dues.
Departments may establish more restrictive procedures with respect to memberships at the discretion of their department manager.
The information here is provided as a guide for understanding UTSA procedures. It is not intended as tax advice, nor does it guarantee any tax consequences to any employee.
Authority
IRS Publications:
University Guidelines
Table of Contents
- Overview
- Business and Professional Organization Memberships
- Memberships to Secure Periodicals and Online Access
- Warehouse Club Memberships
- Social, Private Club or Entertainment/Recreational Memberships
- List of Approved UTSA Institutional Memberships
- Processing Payments
A. Overview
As a public institution, UTSA must make the most efficient and effective use of funds entrusted to it by various constituencies and must be able to demonstrate compliance with applicable laws and rules. Membership expenditures by UTSA must support its institutional mission and must not be made for a private purpose.
Membership dues for lobbying organizations, including chambers of commerce, are disallowed.
B. Business and Professional Organization Memberships
Examples of business and professional organizations (i.e., organized for business purposes only) include the following:
- Those established to promote universities and colleges, such as accrediting agencies;
- Organizations of institutional service agencies and administrative officers;
- Professional organizations such as bar and accounting associations and state CPA societies;
- Scholarly societies; and
- Community organizations.
Institutional memberships in UTSA’s name should be obtained whenever possible, as these often allow participation by several or alternate employees. Individual memberships may be purchased only if particular circumstances warrant an exception based on an evaluation of the benefits to UTSA and the relationship to the job responsibilities of the employee who will be designated as the member. Under no circumstances should UTSA purchase more than one institutional membership in any organization (the List of Approved UTSA Institutional Memberships shows existing memberships).
Membership payments and reimbursements that allow an employee to perform their UTSA business duties generally are not included in that employee’s income.
Although allowable, the cost of UTSA's membership to business, technical and professional organizations must be approved by Post-Award Administration in the Office of Research Finance and Operations prior to being allocated as a direct cost of a sponsored program.
Department managers are delegated authority to approve the use of UTSA funds to join professional organizations that promote the advancement of education and research, enhance the professional standing of faculty and staff and/or facilitate favorable community relations. Departments are not obligated to pay for any individual membership related to a certification/license that is required for an employee’s job duties but can choose to do so, if funds are available.
When approving new or renewal memberships, the approving authority is responsible for evaluating the request to ensure that UTSA funds are not being used to join organizations that are duplicative in function and membership or to renew memberships that are no longer worthwhile, and for designating employees who will participate in the affairs of the organization concerned.
Memberships for students may be allowed if there is a quantifiable benefit to UTSA (e.g., discounted registration for a conference that UTSA is paying for the student to attend).
UTSA may not join any chamber of commerce and may not pay or reimburse employees for chamber of commerce memberships, per state rules.
C. Memberships to Secure Periodicals and Online Access
Departments may purchase a membership in an organization to secure its periodicals if the periodicals cannot otherwise be secured. UTSA, not the individual, will retain such periodicals, which must be made available to all department faculty, staff and students.
Although allowable, the cost of UTSA's subscriptions to business, professional and technical periodicals must be approved by Post-Award Administration in the Office of Research Finance and Operations prior to being allocated as a direct cost of a sponsored program.
D. Warehouse Club Memberships
Memberships to warehouse clubs that provide access to discounted goods may be reimbursed, however, the membership card should be used solely for institutional and not personal purchases.
E. Social, Private Club or Entertainment/Recreational Memberships
Social, private club or entertainment/recreational memberships (e.g., private dining clubs, country clubs, golf/athletic clubs, airline clubs) are generally not allowed. In rare circumstances, these memberships may be approved if the business purpose can be established and the president's approval is obtained in advance. The provost is authorized to approve these memberships for college and academic personnel. The senior vice president for Business Affairs (SVPBA) must approve any membership involving the president. The authority to approve social memberships cannot be delegated. This approval is obtained through completion of a Business Expense Form (BEF) or through an employment offer letter approved by the president or the University of Texas System Board of Regents.
1. Funding Source
Typically, such expenditures are paid from an Official Occasions cost center. Such memberships must not be paid with state funds (Educational and General), designated tuition, student fees or federal funds. Membership dues for country clubs or social or dining clubs/organizations are unallowable as costs of a federal grant or contract, per Uniform Guidance Part 200 Subpart E.
Payments for entertainment expenses incurred in connection with the use of a social membership are reimbursable in accordance with the procedures in the Business Related Hospitality and Entertainment Expenditures financial guideline.
2. Reporting Non-Business Use
Personal charges are the responsibility of the employee and should be remitted directly to the club.
If paid by UTSA, membership dues for any club organized for a social purpose must be included in an employee's income to the extent that the payment is for personal use (not related to a UTSA business purpose). In order for a portion of the club dues to be excluded from an employee's income as a working condition fringe benefit, the employee must substantiate and document the specific business purpose for that portion of the club dues. For each monthly statement, the employee must substantiate the business purpose of business-related charges and indicate any personal charges.
Dues related to personal use of the club will be included in the employee's income on a pro rata basis. If this is not done monthly, Payroll Services (Payroll) will request the information annually prior to the last month of the calendar year.
- Payroll will calculate the value of the employee's non-business use based on the information reported and inform the employee. The non-business use value will be treated as additional compensation to the employee, included in the employee's income and subject to tax withholding.
- If employment with UTSA terminates or the employee becomes ineligible to use the membership, any dues paid by UTSA related to non-business use must be reported by the employee to Payroll before the termination or ineligibility status becomes final.
F. List of Approved UTSA Institutional Memberships
Institutional memberships paid from central funds are processed by the Business Affairs Business Service Center on behalf of UTSA, as listed below:
NOTE: This list does not include institutional memberships paid from departmental funding.
- Academy of Medicine, Engineering and Science of Texas
- Alliance of Hispanic Serving Research Universities
- American Association of Hispanics in Higher Education (AAHHE)
- American Council on Education (ACE)
- Association of American Colleges and Universities (AAC&U)
- Association of Public & Land Grant Universities (APLU — formerly known as NASULGC)
- The Coalition of Urban Serving Universities (USU)
- College Board (entrance examinations)
- Council for Advancement and Support of Education (CASE)
- Council on Competitiveness
- Council of Public University Presidents and Chancellors (CPUPC)
- Engagement Scholarship Consortium
- Greater: SATX (formerly the San Antonio Economic Development Foundation)
- Hispanic Association of Colleges and Universities (HACU)
- National Association of College and University Business Officers (NACUBO)
- Presidents’ Alliance on Higher Education and Immigration
- San Antonio Museum of Art (SAMA)
- Society for College and University Planning (SCUP)
- Southern Association of Colleges and Schools (SACS)
- Texas Association of Chicanos in Higher Education (TACHE)
- Texas Diversity Council
- Voluntary System of Accountability (VSA)
G. Processing Payments
Payment for allowable institutional memberships should be made by UTSA directly to the association through established procedures. In some circumstances, reimbursement to the employee may be allowed upon proof of payment (invoice and/or detailed receipt).
1. Non-PO Payment Voucher
See the Disbursements and Travel Services (DTS) training website for instructions on processing Non-PO Payment Vouchers.
2. One Card
The One Card may be used for:- Business and professional organizations (Account ID 67101) when the organization allows payment by credit card; and/or
- Memberships that allow access to periodicals or online access (Account ID 63201) when the amount charged does not exceed $5,000 and/or other prescribed limits. Refer to the One Card Program financial guideline for more information.
The One Card should not be used for social club membership expenses; use a Non-PO Payment Voucher instead.
You must have prior approval to pay such dues, as indicated above. The completed BEF must be included in the supporting documentation attached to the Non-PO Payment Voucher before it will be approved for payment by DTS.
Related Forms
| Date | Description |
|---|---|
| 12/08/23 | Clarified the types of organizations that are disallowed. Added the San Antonio Museum of Art to the list of institutional memberships. |
| 02/07/23 | Clarified that UTSA is not allowed to join chambers of commerce (section B). |
| 10/06/22 | Updated the list of approved UTSA institutional memberships (section F) and department names (sections B and C). Editorial updates throughout. |
| 11/20/20 | Specified that departments are not obligated to pay for individual memberships (section B) and that approval for social memberships may be via employment offer letters (section E); updated department/position titles and references to the One Card; removed Centro Alliance, IUPLR and NASPA from the list of centrally-funded institutional memberships (section F); editorial updates throughout. |
