1. BOOSTER CLUBS Can’t Live With Them – Can’t Live Without Them

2. Booster Clubs... An Enormous Resource  They provide valuable funding and organizational support for extracurricular activities  Participation in extracurricular activities teaches that it is an honor and privilege to represent one’s school

3. FISCAL RESPONSIBILITY  Funds raised in the name of the school district are public funds  Guidelines and practices governing booster clubs must be established  Decisions regarding best use of funds lie with the school administration

4. BEST PRACTICES  Verify that organizations purporting to be associated with the School District are operating legally Organized as a legal entity Possess a federal ID number Tax exemption determination letter on file Current with annual filings with IRS

5. BEST PRACTICES, cont.  Hold clubs financially accountable Provide written financial guidelines Require annual budgets to be submitted Require quarterly financial statements to school administration Open book policy

6. SUGGESTED FINANCIAL GUIDELINES  Documentation required for cash receipts and disbursements  Bank statements to be reconciled monthly  Two signatures required on checks  Price quote requirements same as other school purchases  Procedures to obtain approvals for fund raisers and other activities

7. GETTING YOUR HOUSE IN ORDER  Send a letter to all banks in your area requesting information on bank accounts using the School District’s federal ID #.  Query the IRS website www.irs.gov click on ‘charities and non-profits’ then on ‘search for charities’ to see if your clubs are listed as current with filings.www.irs.gov  Determine whether your state has any laws governing booster clubs.

8. GETTING YOUR HOUSE IN ORDER, cont.  Survey the school bookkeepers requesting: The name of any booster club associated with the school and the sport/activity they support The name and telephone number of an officer of the club The tax ID # The bank utilized The names on the signature card

9. CONSEQUENCES FOR BOOSTER CLUBS IN NON-COMPLIANCE  Name cannot be associated with school system or school  Can not use school premises to conduct fundraisers

10. Forms & Information  Website: www.irs.govwww.irs.gov  Publication 557 – Tax-Exempt Status for Your Organization  Form SS-4 Application for Federal Tax ID #  Form 1023 Application for Non-profit 501(c)(3)  Form 990

11. DON’T LET THIS HAPPEN TO YOU Monroe, LA – November 2006 – Parent volunteer allegedly diverts thousands of dollars from a booster club. Facts:  Club operated for eight years using a bank account under a name associated with the school but using a parent’s social security number.

12. DON’T LET THIS HAPPEN TO YOU, cont.  Club sponsored at least 23 dances over the course of six years for the school.  Records of tickets sales and expenses were incomplete.  Checks written to parent volunteer and deposited into personal account with no receipts to document the amounts.  Estimated $16,284 unaccounted for.

13. DON’T LET THIS HAPPEN TO YOU, cont.  Legal proceedings are in progress

14. DON’T LET THIS HAPPEN TO YOU, cont. 