Consortium Finances

6.1 Fiscal Agent

National Student Exchange is incorporated in the State of Iowa. The president of the corporation is authorized to execute and deliver activities related to the corporation.

6.2 Fiscal Responsibility

The annual consortium budget is prepared by the President subject to approval by the NSE Council. The President is responsible for sound fiscal management of National Student Exchange funds. The President issues an annual report which contains information regarding consortium financial status as well as the achievements and progress of the program. Fiscal reports will be submitted to appropriate state and federal agencies.

6.3 Nonprofit Status

National Student Exchange is recognized as a not-for-profit, tax exempt corporation under IRS code 501(c)(3) and is incorporated in the State of Iowa as a nonprofit corporation. No part of net earnings shall be distributable to members or officers.

6.4 Fiscal Year

The fiscal year is July 1 through June 30.

6.5 Dissolution of the National Student Exchange

The National Student Exchange may be dissolved by an affirmative vote of two-thirds (2/3) of the members. Such dissolution must be approved no later than January 1 to be effective at the completion of the fiscal year. In the event of dissolution, the assets of the consortium shall be applied and distributed in accordance with Amendment I of the Articles of Incorporation on file in the Ames office.

6.6 Source of Funds

Revenue sources originate primarily from application fees assessed to students applying for participation (2/3 of the revenue) and annual institutional membership fees (1/3 of the revenue). Additional revenue comes from registration fees for NSE's annual conference.

6.6.1 Annual Institutional Membership Fees

6.6.1.1 Amount

The amount of the annual institutional membership fee is determined by the NSE Council.

6.6.1.2 Payment Deadline: July 1

The National Student Exchange bills the institution by May 1 for payment of institutional membership fees. These fees are due July 1 and are nonrefundable in whole or in part.

6.6.1.3 Late Payment Penalty

Institutional membership fees not received by August 1 are subject to payment of a late fee penalty of $100. Fees outstanding as of September 1 are subject to an additional penalty fee of $120. If fees have not been paid by October 1, the institution's membership is subject to termination.

6.6.1.4 Termination of Membership for Nonpayment of Membership Fees

Any institution which has not paid its institutional membership fee by October 1 is subject to having its membership terminated. Membership termination does not abrogate the responsibility of the contracting institution or NSE to provide benefits in accordance with the NSE Terms of Participation and this NSE Handbook for exchanges begun prior to such termination and for exchanges subsequent to termination but which were negotiated prior to termination of the NSE Membership Agreement. Membership termination does not abrogate the responsibility of the contracting institution to pay outstanding membership fees and late payment penalties.

6.6.2 Application Fees Assessed to Students

Applying for Exchange

6.6.2.1 Policy

Each student applying for participation in the National Student Exchange is assessed a nonrefundable application fee for each campus placement per academic year. Application fees are due regardless of placement, acceptance of placement, or subsequent withdrawal after placement.

A fee will be charged for each student application for each campus placement per academic year. A student application fee will not be collected for a term change or a fall to spring extension at the same campus during the same academic year.

6.6.2.2 Amount

The amount of the application fee assessed by the campus to students applying for participation usually exceeds the amount due to the National Student Exchange. The amount of the application fee is determined by the individual member campus.

6.6.2.2.1 Amount Due NSE

The amount of the application fee due to the consortium is determined by the NSE Council.

6.6.2.2.2 Amount Assessed by the Campus

Most member campuses assess a student application fee higher than that required by the consortium. The average fee is generally $50-75 more than the fee required by the National Student Exchange and usage is determined by each campus. Common uses include, but are not limited to, the following:

hosting activities for incoming or outgoing students
administering the campus NSE program
paying all or part of the annual institutional membership fee
assisting with expenses related to attendance at the annual conference

6.6.2.3 Collection on the Campus

Application fees are assessed to all outgoing students submitting applications for exchange. Fees are owed regardless of placement, acceptance of placement, or subsequent withdrawal after placement, and are due to NSE Headquarters by March 31 or December 31. Application fees should be collected by the home campus throughout the year and maintained in a campus account. Student applicants can also pay the fee online directly to National Student Exchange.

6.6.2.4 Payments Due to NSE: April 15 and December 31

Student application fees are due to NSE at the conclusion of each placement cycle. Application fees for priority placements collected December 1 until the March for placements that occur at the March Priority Placement Event will be billed directly following the conference and due by April 15. Direct placements that occur after the March Priority Placement Event and conclude November 30 will be billed December 1 and due by December 31. Application fees are nonrefundable in whole or in part.

6.6.2.5 Payment

NSE provides a twice annual invoice for collection of student application fees. Campus may pay with a single institutional check covering all fees for applications submitted during the billing period or pay online with an institutional credit card.

6.6.2.6 Late Payment Penalty

Student Application Fees not received within 30 days of billing are subject to payment of a late fee penalty of 10 percent of the total owed. An additional 5 percent of the cumulative total is due monthly at 60 and 90 days after which time the institution membership is subject to termination.

6.6.2.7 Termination of Membership for Non Payment of Student Application Fees

Any institution which has not paid its student application fees by 90 days after billing is subject to membership termination. Membership termination does not abrogate the responsibility of the contracting institution or NSE to provide benefits in accordance with the NSE Terms of Participation and NSE Handbook for exchanges begun prior to such termination and for exchanges subsequent to termination but which were negotiated prior to termination. Membership termination does not abrogate the responsibility of the contracting institution to pay outstanding student application fees and late payment penalties.

The National Student Exchange is incorporated as a not-for-profit corporation in the state of Iowa. The incorporator is the consortium. Members of the Council serve as directors.