Presentation on theme: "BOOSTER CLUBS Can’t Live With Them – Can’t Live Without Them."— Presentation transcript:
BOOSTER CLUBS Can’t Live With Them – Can’t Live Without Them
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
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
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
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
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
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.
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
CONSEQUENCES FOR BOOSTER CLUBS IN NON-COMPLIANCE Name cannot be associated with school system or school Can not use school premises to conduct fundraisers
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
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.
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.
DON’T LET THIS HAPPEN TO YOU, cont. Legal proceedings are in progress