Transcript Booster Club/Parent Organization Guidelines

Booster Club/Parent
Organization Guidelines
AUGUST 2014
Parent Organizations
Board Policy GE(LOCAL) Relations with Parent
Organizations revised in May 2014
PTO’s, PTA’s, Booster Clubs
Responsibility of each organization to seek
professional legal and tax advice
District is not liable
AUGUST 2014
Parent Organizations should:
1. Be voluntary and provide unified support for the
school or student group supported
2. Encourage involvement by all parents
3. Comply with applicable UIL guidelines (page 27)
4. Comply with District administrative regulations
and Board Policies
5. Pay all taxes and other debts incurred by the
organization
AUGUST 2014
Parent Organizations should NOT:
1. Be involved in decision or policy making
activities for student group
2. Give anything to students without prior approval
from school administration
3. Give cash to any school employee to use at
his/her discretion
4. Contract an individual to work directly with
students without prior approval from the District
5. Use the District’s tax identification number
AUGUST 2014
Legal Formation
Articles of Incorporation: file with TX Secretary of State
By-laws (sample on page 10)
EIN (Employer Identification Number)
Application for federal tax exempt status – 501(c)(3)
IRS Form 1023 or 1023 EZ
Current filing fee of $400 or $850 depending on gross receipts
State tax-exempt status (franchise & sales tax)
Annual filing requirements: IRS Form 990 or Form 990-N
Failure to file for 3 years will result in loss of tax-exempt status
AUGUST 2014
District Requirements
 Each
year, submit the following to the
campus principal:
Registration and Approval Form (page 18)
By-laws
List of officers and contact information (page 19)
Annual Financial Report
Audit Committee’s Review Report
AUGUST 2014
Annual Financial Report and
Review Committee’s Report
Annual Financial Report must detail actual revenues and
expenditures for the year (sample on page 22)
Appoint an audit committee within the organization to
review the report and finances of the organization (Individuals
on the committee should be independent from the day-to-day financial
activities) sample review procedures on page 20
Objectives of the review should include:
Verifying accuracy of financial records
Ensuring cash balance is accurate
Determining that established procedures have been followed
Verifying that expenditures were properly approved
Ensuring that all revenue has been received, deposited and recorded
AUGUST 2014
Fundraising
Fundraising Application for Outside Organizations
required if activity will occur on District Property
[requires approval of campus principal, Athletic Director (if using stadium),
Athletic Coordinator (if athletic booster), and Internal Auditor]
Fundraising not allowed during school day
Tickets (raffle, BBQ, etc.) or sales brochures cannot be
distributed to students at school and students may not
sell or solicit for these groups
Student fundraising must be done through District
Student Activity Fund accounts
Food sales on campus must comply with Nutrition
Policy as applicable (must wait 30 minutes after the end of the
official school day)
AUGUST 2014
Concession Sales
Comply with applicable City of Mission Food
Handling certification requirements
Must provide Texas Driver’s license or Texas ID to
scan through Raptor System
Athletic Events (concession sales) – District will
issue ID badges to approved members
Approved fundraising application must be posted
at concession sale site
AUGUST 2014
Raffles
Only qualified nonprofit organizations may
conduct raffles
Must be 501(c)(3) organization (exempt from
federal income tax)
Unauthorized raffles are considered gambling
under the Texas Penal Code, may be subject to
Class A misdemeanor for conducting and Class C
misdemeanor for participating
Raffles may not be held on school property
AUGUST 2014
Individual Accounts
Monies of tax-exempt organizations must benefit a group
as a whole instead of benefiting individual members of a
group.
Benefits given by a tax-exempt organization cannot be
based on participation in a fundraiser or based on monies
raised individually.
If a member decides not to participate in a fundraiser, that
individual’s child cannot be excluded from benefiting from
the fundraiser and cannot be penalized in any way for not
participating.
AUGUST 2014
Finances
District employees are restricted from handling parent
organization funds during regular school hours or when
acting as an employee of the District.
A District employee shall not have signature authority over
a parent organization’s funds at the school at which the
employee works.
A member of a parent organization should have a child
enrolled at the campus served by the organization in order
to have signature authority over the organization’s funds.
Monies cannot be held or stored at the campus
AUGUST 2014
Recommended Financial Controls
Require two signatures on checks
Reconcile bank account monthly
Prepare a monthly Financial Report and present to general
membership
Issue receipts for money received, deposit timely, and
deposit directly into the organization’s bank account
Keep invoices and store receipts to support disbursements
Maintain permanent records on file, keep all other records
on file for at least seven years
AUGUST 2014
Important Websites
Mission CISD - www.mcisd.net
Home Page>About Us>District Departments>Student Activity>Files
UIL (University Interscholastic League)
www.uiltexas.org/policy/booster-club-guidelines
Internal Revenue Service
www.irs.gov/charities/nonprofits/index.html
www.irs.gov/formspubs/
http://epostcard.form990.org
Texas State Comptroller
www.window.state.tx.us/taxinfo/coasintr.html
Texas Secretary of State
www.sos.state.tx.us
AUGUST 2014
Questions?
AUGUST 2014