1. Booster Clubs and School Support Organizations Guidelines Training May 29, 2009

2. Welcome DeAnne Hatfield, RTSBA DeAnne Hatfield, RTSBA Executive Director of Business Services dhatfield@nisdtx.org 817-215-0041 Jerhea Nail Jerhea Nail Special Assistant to the Superintendent jnail@nisdtx.org 817-215-0144 Kitty Poehler Kitty Poehler Director of Personnel Services kpoehler@nisdtx.org 817-215-0071

3. Agenda Guidelines Guidelines Organization Organization State and Federal Reporting State and Federal Reporting Sales Tax Sales Tax Accounting for Transactions Accounting for Transactions Fund Raising Fund Raising Donations Donations Scholarship Programs Scholarship Programs District Services District Services

4. Guidelines UIL Booster Clubs UIL Booster Clubs School Support Organizations School Support Organizations Role of the Organization Role of the Organization

5. UIL Booster Club The UIL states that booster clubs are formed to help enrich the school’s participation in extracurricular activities. The UIL states that booster clubs are formed to help enrich the school’s participation in extracurricular activities. All meetings should be open to the public with prior notice given and meeting minutes kept. All meetings should be open to the public with prior notice given and meeting minutes kept. Fund Raising is a major part of the booster club activities. Fund Raising is a major part of the booster club activities. Funds collected must be used to support school activities. Funds collected must be used to support school activities. Fund Raising projects are subject to state laws and local school district guidelines and/or policies. Fund Raising projects are subject to state laws and local school district guidelines and/or policies. Non-Profit status should be obtained from the IRS. Non-Profit status should be obtained from the IRS. Since UIL rules regulate what UIL participants, sponsors and coaches may and may not accept, it is important the booster clubs are aware of these rules. Since UIL rules regulate what UIL participants, sponsors and coaches may and may not accept, it is important the booster clubs are aware of these rules. Please reference the UIL Parent Information Manual for more information on UIL guidelines for Booster Clubs at http://www.uil.utexas.edu/athletics/manuals/pdf/parent_information.pdf

6. School Support Organizations PTA is a nonprofit, democratic, voluntary organization whose membership is concerned with the welfare of children and youth and who are willing to uphold its basic policies and subscribe to its bylaws. PTA is a nonprofit, democratic, voluntary organization whose membership is concerned with the welfare of children and youth and who are willing to uphold its basic policies and subscribe to its bylaws. The mission of the PTA is: The mission of the PTA is: to support and speak on behalf of children and youth in the schools, in the community and before governmental agencies and other organizations that make decisions affecting children; to support and speak on behalf of children and youth in the schools, in the community and before governmental agencies and other organizations that make decisions affecting children; to assist parents in developing the skills they need to raise and protect their children; and to assist parents in developing the skills they need to raise and protect their children; and to encourage parent and public involvement in the public schools of this nation. to encourage parent and public involvement in the public schools of this nation.

7. Role of the Organization Booster Clubs and School Support Organizations shall organize and function Booster Clubs and School Support Organizations shall organize and function in a way that is consistent with the District’s philosophy and objectives in a way that is consistent with the District’s philosophy and objectives with adopted Board policies with adopted Board policies in accordance with UIL regulations as applicable in accordance with UIL regulations as applicable

8. Organization Bylaws Bylaws Officers Officers

9. Organization Bylaws Each booster/school support organization must maintain bylaws. Each booster/school support organization must maintain bylaws. Bylaws must be reviewed jointly by the school principal/designee and the organizations’ executive officers. Bylaws must be reviewed jointly by the school principal/designee and the organizations’ executive officers. The bylaws must address rules for membership in the organization, the fiscal year, and the structure and method to be used to elect officers. The bylaws must address rules for membership in the organization, the fiscal year, and the structure and method to be used to elect officers.

10. Organization Officers Below is a diagram indicating the minimum number of officers for a booster/school support organization. Below is a diagram indicating the minimum number of officers for a booster/school support organization. Typically officer election should be completed by May of each year so that training can be completed and officers in place for the start of the school year. Typically officer election should be completed by May of each year so that training can be completed and officers in place for the start of the school year. Larger organizations may elect several vice presidents with responsibility over different areas. Larger organizations may elect several vice presidents with responsibility over different areas. Due to the increasing requirement placed on charitable organizations by the IRS, it is strongly recommended that the Treasurer have an accounting background. Due to the increasing requirement placed on charitable organizations by the IRS, it is strongly recommended that the Treasurer have an accounting background. The transfer of records and audit of accounts should be completed by July 1 of each year. The transfer of records and audit of accounts should be completed by July 1 of each year. President SecretaryTreasurerParliamentarian Vice President

11. Liability Insurance Booster Clubs and School Support Organizations are independent; therefore not covered by District insurance policies. Booster Clubs and School Support Organizations are independent; therefore not covered by District insurance policies. General Liability – protects your organization if someone is injured at event General Liability – protects your organization if someone is injured at event Accident Medical – provides medical coverage for risks specifically excluded from the liability policy such as mechanical rides, school buses, automobiles and water craft Accident Medical – provides medical coverage for risks specifically excluded from the liability policy such as mechanical rides, school buses, automobiles and water craft Bond – covers anyone entrusted with organization’s money Bond – covers anyone entrusted with organization’s money Property – protects raffle merchandise, auction items and fundraising supplies while in your possession Property – protects raffle merchandise, auction items and fundraising supplies while in your possession Officers’ Liability – protects officers for any decision making Officers’ Liability – protects officers for any decision making

12. State and Federal Reporting

13. State and Federal Reporting Application for Federal Tax Exempt Status All booster/school support organizations should apply for Federal Tax Exempt Status on Form 1023, Application for Recognition of Exemption Under Section 501(c)(3). All booster/school support organizations should apply for Federal Tax Exempt Status on Form 1023, Application for Recognition of Exemption Under Section 501(c)(3). (General instructions and information can be found in IRS Publication 557, Tax-Exempt Status for your Organization.) Further information may be obtained at www.irs.ustreas.gov under Application for State Tax Exempt Status www.irs.ustreas.gov Each organization must file for an employer identification number. Each organization must file for an employer identification number.

14. State and Federal Reporting Each organization must submit a copy of the determination letter issued by the IRS with regard to it’s exempt status. This letter is required annually as proof of the organization’s exempt status. Each organization must submit a copy of the determination letter issued by the IRS with regard to it’s exempt status. This letter is required annually as proof of the organization’s exempt status. The organization must apply for their own sales permit from the Comptroller’s office. The organization must apply for their own sales permit from the Comptroller’s office. You must obtain sales and use tax permit if you are engaged in business in Texas and you: You must obtain sales and use tax permit if you are engaged in business in Texas and you: Sell tangible personal property in Texas Sell tangible personal property in Texas Lease tangible personal property in Texas; or Lease tangible personal property in Texas; or Sell taxable services in Texas Sell taxable services in Texas Further information from the Comptroller’s office may be found at www.window.state.tx.us Further information from the Comptroller’s office may be found at www.window.state.tx.us www.window.state.tx.us

15. State and Federal Reporting Annual Filing Requirements All booster/school support organization exempt from federal taxes under 501(C)(3) must determine the necessity for filing Form 990, Return of Organization Exempt from Income Tax. All booster/school support organization exempt from federal taxes under 501(C)(3) must determine the necessity for filing Form 990, Return of Organization Exempt from Income Tax. An organization recognized as tax exempt may be liable for tax on income deemed unrelated business. An organization recognized as tax exempt may be liable for tax on income deemed unrelated business. More information can be obtained from Publication 598, Tax on Unrelated Business Income of Exempt Organizations. Public Disclosure All non-profit organizations must comply with the timelines and established by the Texas Public Information Act. Texas Government Code Chapter 552. All non-profit organizations must comply with the timelines and established by the Texas Public Information Act. Texas Government Code Chapter 552.

16. Sales Tax

17. Sales Taxes Organization must provide a vendor with a valid signed exemption certificate when claiming exempt status. Organization must provide a vendor with a valid signed exemption certificate when claiming exempt status. The NISD exempt status can not be utilized by a booster/school support organization. Each organization must apply and receive their own exempt status. The NISD exempt status can not be utilized by a booster/school support organization. Each organization must apply and receive their own exempt status. Items that become personal property of the student are not exempt. Awards given to students by the organization are exempt. Items that become personal property of the student are not exempt. Awards given to students by the organization are exempt. Individual members of the teams, band, etc may not claim exemption from the sales tax on meals they purchase while on a school trip. Only meals contracted by the organization are exempt from sales tax. Individual members of the teams, band, etc may not claim exemption from the sales tax on meals they purchase while on a school trip. Only meals contracted by the organization are exempt from sales tax. Organization shall collect and remit sales tax on all taxable items. When imposing sales tax, the organization may add the tax to the sale item or absorb it into the selling price. Organization shall collect and remit sales tax on all taxable items. When imposing sales tax, the organization may add the tax to the sale item or absorb it into the selling price.

18. Accounting for Transactions

19. The membership of the organization should be provided with a financial statement and bank reconciliation at a regular meeting at least once per month. The membership of the organization should be provided with a financial statement and bank reconciliation at a regular meeting at least once per month. The financial statement should detail the budget to actual expenditures and receipts. The financial statement should detail the budget to actual expenditures and receipts. Choose a computerized accounting package to assist your organization in accurate record keeping. Adopt a package that can be used for several fiscal years. Avoid manual record keeping for this type of reporting. Choose a computerized accounting package to assist your organization in accurate record keeping. Adopt a package that can be used for several fiscal years. Avoid manual record keeping for this type of reporting. Cash receipts and disbursement reports should be available when needed for the annual audit. Cash receipts and disbursement reports should be available when needed for the annual audit. District employees and individuals who actively coach or direct a UIL Activity should NOT have control or signature authority over an organization’s funds. District employees and individuals who actively coach or direct a UIL Activity should NOT have control or signature authority over an organization’s funds.

20. Cash Receipt and Petty Cash All cash collections for fees, dues, and fundraising must be deposited upon receipt. All cash collections for fees, dues, and fundraising must be deposited upon receipt. All funds must be supported by some type of record documenting the source, amount, and be available for audit purposes. All funds must be supported by some type of record documenting the source, amount, and be available for audit purposes. Booster/support organization funds will not be stored in the school vault or collected by a District employee. Booster/support organization funds will not be stored in the school vault or collected by a District employee. A petty cash account may be kept by the organization. Only the Treasurer and one other officer of the organization should have access to it. A district employee cannot be in control of this account. It should be used for emergency purchases only. A petty cash account may be kept by the organization. Only the Treasurer and one other officer of the organization should have access to it. A district employee cannot be in control of this account. It should be used for emergency purchases only.

21. Bank Account To open bank account, the organization must obtain Employer Identification Number (EIN) from the IRS To open bank account, the organization must obtain Employer Identification Number (EIN) from the IRS Suggested that at least two (2) officers be signers Suggested that at least two (2) officers be signers Reconcile bank statement monthly Reconcile bank statement monthly District employee may not be the signer on organization’s bank account District employee may not be the signer on organization’s bank account District employee cannot serve as Treasurer District employee cannot serve as Treasurer

22. Bank Reconciliation and Disbursement of Funds Each month the balance indicated on the statement shall be reconciled to the account balance as of the last day of the month. Each month the balance indicated on the statement shall be reconciled to the account balance as of the last day of the month. All disbursement requests must be made from established budget line items. If a request exceeds or is not a line item in the budget, then a vote of the membership must be taken before the expenditure of the funds. All disbursement requests must be made from established budget line items. If a request exceeds or is not a line item in the budget, then a vote of the membership must be taken before the expenditure of the funds. A disbursement voucher should be completed for all expenditures regardless of amount. A disbursement voucher should be completed for all expenditures regardless of amount. Booster/school support organizations may not contribute funds in an effort to increase the personnel allocations and/or stipends of a particular program without the express written approval of the appropriate Assistant Superintendent. Booster/school support organizations may not contribute funds in an effort to increase the personnel allocations and/or stipends of a particular program without the express written approval of the appropriate Assistant Superintendent.

23. 1099 Requirements The Internal Revenue Service guidelines require that all payments for services that exceed $600.00 made to an individual must be reported on a 1099 annually. The organization should secure an IRS W-9 Form from the provider at the time of service to ensure that an accurate record of the tax payer identification number is kept. The organization should secure an IRS W-9 Form from the provider at the time of service to ensure that an accurate record of the tax payer identification number is kept. The 1099 form must be issued to qualified vendors by January 31 st for the previous calendar year. The 1099 form must be issued to qualified vendors by January 31 st for the previous calendar year. More information for the appropriate 1099 forms can be found at www.irs.ustreas.gov More information for the appropriate 1099 forms can be found at www.irs.ustreas.govwww.irs.ustreas.gov

24. GASB 39 Requirements The Governmental Accounting Standards Board Statement #39 requires school districts to consider financial activities of all parent teacher organizations, booster clubs, foundations and other fund raising entities for inclusion in the district’s financial statements. GASB 39 Information Form GASB 39 Information Form Submit to the District’s Financial Services Department no later than August 1, annually Submit to the District’s Financial Services Department no later than August 1, annually Include financial records year ending June 30th Include financial records year ending June 30th

25. Fund Raising

26. What is a Fund Raiser? What is a Fund Raiser? Planned – Scheduled – Anticipated Planned – Scheduled – Anticipated Event Event Activity Activity Product Sale Product Sale Service Service All booster/school support organizations shall complete and submit a fund raising application and receive the approval of the campus principal or designee. All booster/school support organizations shall complete and submit a fund raising application and receive the approval of the campus principal or designee.

27. Donations

28. Donations School district staff and students are discouraged from accepting gifts of value. School district staff and students are discouraged from accepting gifts of value. Students in UIL activities shall not accept gifts except as provided by the UIL Constitution and Contest Rules. Students in UIL activities shall not accept gifts except as provided by the UIL Constitution and Contest Rules. Donations to the District shall become the sole property of the District not the accepting organization. Please see Policy CDC (LOCAL) for NISD criteria for gifts. Donations to the District shall become the sole property of the District not the accepting organization. Please see Policy CDC (LOCAL) for NISD criteria for gifts. A gift that may impact a campus (i.e. facility, grounds, infrastructure, technology, or curriculum) must have prior approval. A gift that may impact a campus (i.e. facility, grounds, infrastructure, technology, or curriculum) must have prior approval.

29. Scholarship Programs

30. The District encourages scholarship programs that benefit students Scholarships for a Graduating Senior Scholarships for a Graduating Senior Student Scholarships for Campus Related Activities Student Scholarships for Campus Related Activities

31. District Services

32. District services available to booster clubs/school support organizations Printing services are available at the cost of the service Printing services are available at the cost of the service First Class mailing is also available. The organization will be billed on a monthly basis for usage. Bulk mailing cannot be processed by the District. First Class mailing is also available. The organization will be billed on a monthly basis for usage. Bulk mailing cannot be processed by the District. Catering services are available through ARAMARK, the District Food Service Provider. Catering services are available through ARAMARK, the District Food Service Provider. Armored Car Service is not available through the District. Armored Car Service is not available through the District. Employer Identification Number is not available through the District. Employer Identification Number is not available through the District.

33. Summary

34. Tools for Success Should…. Be voluntary and provide unified support for student activities of the school. Be voluntary and provide unified support for student activities of the school. Encourage involvement by all parents of students participating in the supported activity. Encourage involvement by all parents of students participating in the supported activity. Hold public general meetings with notice of the meeting given. Hold public general meetings with notice of the meeting given. Have a campus administrator and/or designee present at all meetings. Have a campus administrator and/or designee present at all meetings. Obtain approval of the principal or designee for all fundraising activities. Obtain approval of the principal or designee for all fundraising activities. Submit a copy of audited financial report to the principal no later than August 1 following the end of the fiscal year. Submit a copy of audited financial report to the principal no later than August 1 following the end of the fiscal year. Obtain the tax exempt status 501(C)(3) Obtain the tax exempt status 501(C)(3) Obtain Employer Identification Number (EIN) Obtain Employer Identification Number (EIN) Submit contact information of current officers and authorized bank account signers to principal or designee. Two signatures are required on all checks. Submit contact information of current officers and authorized bank account signers to principal or designee. Two signatures are required on all checks. Provide adequate insurance coverage for activities conducted on school premises. Provide adequate insurance coverage for activities conducted on school premises. Submit IRS determination letter and GASB 39 information form annually to the District’s Finance Department no later than August 1. Submit IRS determination letter and GASB 39 information form annually to the District’s Finance Department no later than August 1.

35. Tools for Success Should Not… Have authority in directing or influencing District employees in the administration of duties. Have authority in directing or influencing District employees in the administration of duties. Be involved in decision or policy making activities for a student group. Be involved in decision or policy making activities for a student group. Give employee gift or cash in excess of UIL guidelines in recognition of, or appreciation for coaching, directing or sponsoring student activities. Give employee gift or cash in excess of UIL guidelines in recognition of, or appreciation for coaching, directing or sponsoring student activities. Give anything to students without prior approval from the school administration. Give anything to students without prior approval from the school administration. Give a member any gift without the approval of club membership. Give a member any gift without the approval of club membership. Employ or pay any member for services rendered with the organizations funds. Employ or pay any member for services rendered with the organizations funds. Sign contracts or pay expenses directly from the organization accounts for any arrangements for student travel associated with the organization without prior approval of the principal. Sign contracts or pay expenses directly from the organization accounts for any arrangements for student travel associated with the organization without prior approval of the principal. Use the District’s Tax Identification Number as the organization’s identification number. Use the District’s Tax Identification Number as the organization’s identification number. Use the District’s sales permit number as the organization’s sales permit number. Use the District’s sales permit number as the organization’s sales permit number.

36. Questions ?