Transcript Booster Club 101 - Lewisville Independent School District

Thank you for attending
Booster Club Training
Contact Name: Rhonda Godbey
West Zone Leader
[email protected]
Booster Club 101
A training for Booster Clubs and Parent Groups
We Appreciate You
Training Requirements
Purpose of Training
• Requested from several
coaches as well as parents
• Uncomfortable situations
• Support of programs
• Protection for both parties
• Inauguration year. LISD
requires training each year.
Purpose of Booster Clubs
• Here for the children
• Extra-curricular activities
allow students to
participate in programs they
truly enjoy.
• Participation aids in
prevention of drugs,
dropping out, etc.
Why Booster Club training?
• “Although Texas ranks as the number-one state for
having its school districts misrepresented in
fundraising schemes, neither size nor climate zone
determines which districts are most apt to become
targets. It's all about the money.”
(Fundraisingforsports.com, 8/2006)
• Knowing this, we must be cognizant and avoid these pitfalls.
Role of Competition
• Lewisville ISD believes participation in
extra/co-curricular activities teaches that it is
a privilege and an honor to represent one’s
school. Students learn to win without
boasting and lose without bitterness.”
• In light of this mission statement, we as
educators and you as parents must support
the programs at all times whether winning or
losing.
Purpose of Booster Clubs
• In the Lewisville Independent School District (LISD),
we encourage the participation and involvement of
parents in the education of their children. One way
parents can be involved is through participation in
voluntary parent organizations such as Booster Clubs.
• Booster Clubs should be organized to help promote,
support, and improve the extra-curricular activities
of the schools in Lewisville ISD.
• The fund raising role of booster clubs is particularly
crucial in today’s economic climate.
Basic Requirements to Formation
• Must obtain written approval from the School Principal.
• Must be formed as a non profit charity with the purpose as
defined in the Internal Revenue Code section 501(c)3. This is
the only way to be recognized as an exempt charity.
• Get your sales and use tax permit. Booster Clubs are required to
pay state sales tax when purchasing taxable items and to collect
sales tax when selling taxable items subject to certain
exemptions. Apply to the State Comptroller of Public Accounts
requesting issuance of a sales tax number to be exempt.
• Annual budgets must be formulated and approved by the
membership, setting forth the fund raising projects and the
purpose for which the funds will be expended.
Basic Requirements to Formation
• It is recommended that Booster Clubs have proof
of liability insurance in place. ($300 a year)
Protects executive board and club.
• Obtain a post office box/permanent mailing
address.
• All checks require two officer signatures –
typically the Treasurer and President.
• A check and balance system must be in place
during fund raising. Reconciliation statements
must be used individually and with whole groups.
• Begin submitting timely audited financials yearly.
IRS and State Processes
• Once you are properly set up, you must maintain
good standing with the State of Texas and the
Federal Government. You must file your Sales and
Use Tax reports as well as your IRS Form 990’s.
• You must also have an internal yearly audit. The
Audit Report and the Financial Report must be
turned in to the Principal by September 1st of
each year.
• You may also want to refer to the Booster Club
Checklist.
Important Note:
• During any kind of fund raiser, coaches should
never collect the money. Booster club
members should always run the fund raiser
including the collection of funds.
Authoritative Guidelines
• Booster Clubs are governed by various entities:
1. Board Policies and guidelines that Booster Clubs
must follow (Board Policy GE Local). Also, the Booster Clubs
must follow the guidelines of the University Interscholastic
League (UIL), the State of Texas, and the Federal
Government, through the Internal Revenue Service (IRS).
Some state regulations relate to state sales tax while other
regulations involve becoming incorporated or involve the
holding of a raffle.
• Some guidelines may not necessarily apply to your
organization. For specific questions, you should contact
the appropriate governing body.
Authoritative Guidelines
• Board Policy GE Local:
http://pol.tasb.org/Policy/Search/384?filter=ge%
20local
• UIL Guidelines:
http://www.uiltexas.org/policy/booster-clubguidelines
• Lewisville ISD’s Booster Club Guidelines:
http://www.lisd.net/pdf/business/Booster_Club_
forms/Booster_Club_Guidelines_with_forms.pdf
IRS/Raffles
• Below is the link regarding the IRS and raffles:
http://www.irs.gov/pub/irstege/notice_1340.pdf
Responsibility
Booster Club officers in collaboration with LISD
sponsor/coach are solely responsible for ensuring
that their Booster Clubs are in compliance with all
regulations. The most important regulation is the
duty to comply and the duty to report. Therefore,
the District is not responsible for a Booster Club not
being in good standing with appropriate governing
bodies.
Internal Audits
This information is provided by the District’s Internal Audit
Department; however, Internal Audit is not an authority on specific
accounting situations or tax-related issues concerning individual
Booster Clubs. Therefore, Booster Clubs should obtain competent
independent counsel, such as a Certified Public Accountant (CPA) or
an attorney, to address accounting and tax matters related to their
specific circumstances. The cost of these services would be the
Booster Club’s responsibility. In addition, the IRS and the Texas State
Comptroller’s Office may be contacted for questions related to your
organization’s specific situation.
Audit Committee
• LISD requires each club to establish an audit
committee to conduct an annual review of the
Financial Report. The treasurer cannot be on
this committee. The audit committee must
prepare a written Audit Committee Report
that communicates the results of the audit to
the members at the next regular meeting. See
Business Operating Guidelines for Booster
Clubs.
Irregularities in Audit
• Contact the treasurer for additional records or
information.
• Contact the President if matter cannot be
settled to the committee’s satisfaction; and
• Contact the Principal for further assistance.
Required Forms Submitted To Principal
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Booster Club/Organization Statement of Purpose
Booster Club/Organization Budget
Booster Club/Organization Annual Report
Permission to Collect Funds Form
Contribution Acknowledgement Form- Principal must submit to the
Distribution Center Manager for approval of donated items if $1,000, but
less than $50,000. Contributions of $50,000 or greater require Board
approval.
• Certificate – Treasurer must complete a Certificate which is submitted to
the Accounting Department. Accounting uses the Certificate to determine
if the materiality requirements are met.
• Audit Report
• Campus Based Improvements – Must submit to Executive Director of
Facility Services. Improvements greater than $50,000 require Board
approval.
IRS and State Processes
•
Obtain an EIN: Complete form SS-4 or complete form SS-4 online. www.irs.gov
(no fee) LISD’s Employer Identification Number should never be used for any
purpose.
•
With an EIN and bylaws, you may open a bank account.
•
Obtain a State Sales and Use Tax Permit. Form AP-201.
http://www.window.state.tx.us/taxinfo/taxforms/ap-201.pdf (no fee)
•
Contact the Secretary of State in order to become incorporated. This step is
strongly recommended. Complete form 202.
http://www.sos.state.tx.us/corp/forms/202_boc.pdf ($25 fee)
•
If you desire, complete Form 1023 in order to be recognized as an exempt
organization. http://www.irs.gov/pub/irs-pdf/f1023.pdf
Also complete the user fee, Form 8718/501(c)(3). ($400 - $850 fee)
•
Contact the State Comptrollers Office Exempt Organizations Department in order
to be recognized as exempt with the State. (no fee)
Special Notes:
• LISD forbids any student, regardless of grade,
from participating in door to door sales.
• Per the IRS – Booster Clubs cannot require
that members participate in a fund-raiser nor
require that each member raise a certain
amount. In addition, the IRS stipulates that a
member who does not participate in a fundraiser would be entitled to the same benefits
as those members who did participate.
UIL Special Notes:
• Booster clubs cannot give anything to students, including
awards. The school principal must give prior approval for
any banquet or get-together given for students.
• Unlike music and academic booster clubs, athletic booster
club funds shall not be used to support athletic camps,
clinics, private instruction or any activity outside of the
school (See UIL Link).
• Booster groups or individuals may donate money or
merchandise to the school with prior approval from the
principal. These kinds of donations are often made to
cover the cost of commercial transportation and to cover
costs of out-of-town meals. It would be a violation for
booster groups or individuals to pay for such costs directly.
Special Note:
Music Boosters
• Many music groups schedule educational field trips with
the approval of the School Board and building principal.
Principals are required to monitor the number of days
used for UIL absences. For these trips, specific
educational components must be included such as
performing for a music festival, an adjudicated contest or
a concert tour. Marching performances such as the
Macy’s Thanksgiving Day Parade or other similar
ceremonial appearances also qualify.
• However, educational components need not be limited
to performances. Concert attendance, visiting
university/conservatory music facilities and other music
related non-performing opportunities would be
appropriate if approved by the Board.
http://www.lisd.net/pdf/booster_forms/Booster_Statement_of_Purpose.pdf
http://www.lisd.net/pdf/booster_forms/Booster_Organization_Budget.pdf
http://www.lisd.net/pdf/booster_forms/Booster_Organization_Annual_Report.pdf
http://www.lisd.net/pdf/booster_forms/Fund_Raising_Application-%20Booster_Clubs_only.pdf
http://www.lisd.net/pdf/booster_forms/Contribution_Acknowledgement_form.pdf
http://www.lisd.net/pdf/booster_forms/Certificate.pdf
http://www.lisd.net/pdf/booster_forms/Booster_Audit_Report.pdf
Reference List
• Internal Revenue Service-Non Profit Section
1-877-829-5500
• Texas State Comptrollers Office-Exempt
Organizations 1-800-252-5555
• University Interscholastic League 1-512-471-5883
• Texas Secretary of State 1-512-463-5555
• Texas Attorney General www.oag.state.tx.us
Houston Office 1-713-223-5886
• LISD’s Business Operating Procedures