Transcript BOOSTER CLUB TRAINING

BOOSTER CLUB
TRAINING
Department of Athletics
Temple Independent School
District
Booster Club Website

www.tisd.org
– Hover over “Parents”
– Select “Athletics”
– Select “Booster Clubs”
Board Policy

GE Local
– The Board is responsible for the oversight of the
District including parent or booster organizations
that use the school name or claim any
connection with the school. The Board shall
approve and recognize only those organizations
that meet established guidelines and, in the
opinion of the Board, operate for the benefit of
the school and its students
Board Policy
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Required Data
– Purpose and operational guidelines
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Constitution, Bylaws, goals, etc
– Constitution and guidelines for operation
– List of officers
– Financial goals
– Audit of all funds upon request
Board Policy (cont)

Specific Guidelines
– Superintendent or principal has veto power over any
action of the club
– No authority to direct any school employee in any of his or
her duties
– No authority to guide, direct, or establish guidelines for
any school activity
– All individuals should be eligible for membership
– Election of officers should be on a systemic basis
– If Club disbands, ceases to operate all funds and property
become the property of the Temple ISD
Board Policy (cont)

Specific Guidelines (cont)
– Clubs must abide by UIL Booster Club
Guidelines
www.uil.utexas.edu
 www.templewildcats.tisd.org

– Club may be disbanded by the
administration or Board if it does not
adhere to the established policies and
regulations
Meetings
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All actions of the booster club should
be recorded in the meeting minutes
Meetings should take place on District
premises
Campus administrators must be invited
to meetings
– 72 hours notice and posting
Internal Controls
(Bank Accounts)
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Controls over bank accounts
– Establish bank account & require two
signatures
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Recommend at least three signers on bank
signature card
– Review of bank statement and it’s
contents by independent party (nontreasurer, non-signer) ***required for
fidelity bond***
Internal Controls
(Bank Accounts)

Controls over bank accounts
– Review of bank statements (cont.)
Review front and back of check for propriety
 Ensure # of cancelled checks match number
printed on bank statement
 Compare disbursements to budget & proper
approval as documented in the minutes
 Evaluate deposits for completeness
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Internal Controls
(Bank Accounts)

Controls over bank accounts (cont)
– Bank reconciliations completed within 30
days
– Review and sign-off of bank reconciliation
by independent party
Internal Controls (Cash)
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Controls over cash & receipts
– Deposits made daily for $250 or more
– Receipts supported by documentation
Cash Receipt
 Ticket sales record
 Tabulation of monies
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– Cash verified under dual control
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At conclusion of fundraiser & when changing
hands
Internal Controls (Cash)
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Cash safeguarded at all times
Cash should NOT be maintained at
member’s home
– Deposit funds day of events – utilize night
drop
Internal Controls
(Disbursements)
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Controls over disbursements
– Complete fundraiser application
– Checks supported by documentation
Invoice
 Receipt
 Signed and authorized by President or Vice
President
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– Checks should require a second signature
Internal Controls
(Disbursements)

Controls over disbursements (cont.)
– Blank checks should not be issued –
require reimbursement
– Checks should not be made out to
“cash”– make out to individual so there is
accountability
Internal Controls
(Budget/Oversight)

Budgetary and oversight control
– Approval of budget
– Regular written financial reports to
membership regularly
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At a minimum
– Bank account balance
– Receipt & disbursement activity since last meeting
– Comparison of budget vs actual
Internal Controls
(Budget/Oversight)
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Budgetary and oversight controls
– Complete a financial recap at end of
fundraiser
– Audit by independent individuals
***required for fidelity bond***
Financial Controls
Checklist
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Posted to Booster Club website
Helps to evaluate what controls you
have in place and what needs to
improve
Insurance Coverage
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May or may not need depending on
size of organization and funding
availability
Liability insurance
– General liability – protects booster club
and members
– Officer’s liability – protects officers for
decisions made
Insurance Coverage
(cont)
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Liability Insurance
– Business personal property – protects
computers, fundraising merchandise, etc
– Fidelity (bond) coverage – protects funds
from fraud, embezzlement, robbery, and
theft
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Must have certain financial controls in place
to qualify for fidelity coverage
Submission of Financials
& Audit Reports
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Submission of financial reports
– Deadline January 31 for period ended
Dec. 31
– Deadline July 31 for period ended June
30
Fundraising

No longer allowed – violates IRS
provisions:
– Individual accounts
– Required participation in fundraising
– Required sales quotas
Fundraising
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Booster clubs may have (school clubs
may not):
– Raffles – must be a 501(C) (3)
organization
– Bingo – must be a 501(C) (3)
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Specific rules apply to both
Scholarships
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Checks written to university (not
student, after receipt/invoice provided
– prefer funnel through campus for
better tracking
Consult principal and/or counselor for
help
Scholarships – should be small portion
of budget
Benefits of Becoming a
501(c)(3)
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Tax Benefits
– Revenues raised by organization are
generally not taxable
– Contributions to 501(c)(3) are tax
deductible by the contributor
– Can qualify for sales tax exemption
through State of Texas
– Ability to hold raffles and conduct bingo
Benefits of Becoming a
501(c)(3)
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Legal Benefits
– Potential for reduced individual liability
from incorporation (should obtain legal
advice regarding legal liability and
insurance protection)
Obtaining 501(c)(3)
Part 1
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File certificate of formation as a nonprofit
association with Texas Secretary of State
Obtain employer identification # via
Application for Employer Identification
Number, Form SS-4 – Done online – IRS
Complete Application for Recognition of
Exemption Under 501(c)(3) of Internal
Revenue Code, Form 1023
Obtaining 501(c)(3)
Part 2
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Include user fee of $400 or $850
(depending on whether average annual
revenues are less than or greater than
$10,000)
Form 1023 not required if gross receipts
<$5,000 per yr. (may still be recommended)
Upon approval, receive Determination Letter
stating effective date of tax-exempt status
(cannot represent as tax-exempt until then)
Obtaining 501(c)(3)
Part 3
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IRS Publication 557, Tax Exempt
Status for Your Organization, covers
the rules and procedures for
organizations that seek recognition of
exemption from federal income tax
IRS – Form 990 (part 1)

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Due 4 ½ months after year end (May 15th if using
calendar year)
Schedule A required to be included with 990 filing
Can file Form 990-EZ instead if gross receipts are
below the following threshold amounts:
–
–
–
–
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$100,000 for years beginning before 2008
$1,000,000 for years beginning in 2008
$500,000 for years beginning in 2009
$200,000 for years beginning after 2009
Can file Form 990-N instead if gross receipts are
below $25,000
IRS – Form 990 (part 2)
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For years beginning after January 1, 2008,
Form 990 overhauled, eligibility for 990-EZ
expanded.
Unrelated business income tax – may be
liable (income from trade/business that is
regularly carried on and not substantially
related to charitable purpose for which
established)
– Example 1: advertising vs sponsorship
income
IRS – Form 990
(part 3)
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IRS Publication 598 – Tax on
Unrelated Business Income of the
Exempt Organization
Public disclosure – what is required:
Application for Tax Exemption, Form
1023; Determination Letter; Annual
Form 990 (last three years)
www.guidestar.org
Tax Exempt Status
Do’s & Don’ts
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Activities must benefit the group as a whole instead of
benefiting individual members of a group
Cannot use individual accounts to benefit only certain
individuals with revenues raised
Cannot require a person to participate in fundraising.
Can have certain criteria met for member to receive
benefit – attendance at meetings, events, etc. – but not
fundraising
– Benefits reduction must not affect student only parent member –
not voting rights, no eligibility for officer elections

Cannot require that a certain amount be raised or sold
per person
Other Compliance
(part 1)
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Other IRS Issues
– 1099 reporting – all payments for services of
$600 or greater made to an individual or
unincorporated business reported on 1099 on or
before Jan. 31st of following year
Should have IRS form W-9 completed by provider
at the time of service to obtain information needed
Other Compliance
(part 2)

Texas issues
– Exemption from sales tax and franchise
tax – State Comptroller’s office
Done separately and in addition to IRS taxexemption
 Must be 501(c)(3) to qualify
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– Texas Application for Exemption
Other Compliance
(part 3)
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Purchases by Club
– Sales tax permit – sales tax exemption applies to
purchase, lease or rent of taxable items that are necessary
to organization’s exempt functions, but not sales
– Provide exemption certificate at time of purchase
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Cannot use tax-free items for personal benefit
Items which become the personal property of individuals are not
exempt from tax
Sales by Club
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Must obtain sales tax permit to collect and remit sales tax on taxable
sales
Two tax free sales per year – qualifying organizations only
(501(c)(3))
If resale of items, provide re-sale tax exemption form to vendor at
time of purchase
Club’s Permanent
Records
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IRS Determination Letter
IRS Application for Exemption
Annual Form 990’s
Employer Identification Number (EIN),
Form SS-4
Exemption letter from State
Comptroller