Booster Club 101 - Lewisville Independent School District

Report
Booster Club 101
A training for Booster Clubs and Parent Groups
We Appreciate You
Why Training Requirements?
1. Requested by coaches and parents
2. Avoid uncomfortable situation due to
lack of knowledge
3. Support for both programs/groups
4. Protection for both parties
Purpose of Booster Clubs
1. We are all here for the success of
our children.
2. Extra-curricular activities allow
students to participate in programs
they truly enjoy.
3. 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.
Why Booster Club Training?
• Often, a friend nominates another friend to
share the joy of being a booster club officer.
Many times individuals enter the roles
without expectations of the legal
requirements to fulfill the roles.
• Training is designed to better educate those of
you who obtained a leadership role in the
booster club.
Role of Competition
• UIL Booster Club Guidelines begin with a
statement regarding competition,
“Participation 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,
we encourage the involvement of parents in
the education of their children. Parents can
be involved through participation in voluntary
parent organizations such as Booster Clubs.
• Booster Clubs should be organized to help
promote, support, and improve the extracurricular activities of the schools.
• The fund raising role of booster clubs is
particularly crucial in today’s economic
climate.
Purpose of Booster Clubs
• Booster clubs must always work
collaboratively with the head coach or lead
sponsor in the organization.
• Booster clubs support the goals of the
particular program or organization.
• Booster clubs are not independent operations.
Forming a New Booster Club
Forming a Booster Club
• 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.
Forming a Booster Club
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.
Forming a Booster Club
• Get a 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.
Forming a Booster Club
• It is recommended that Booster Clubs have
proof of liability insurance in place.
(approximately $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.
Forming a Booster Club
• A checks and balance system must be in place
during fund raising. Reconciliation statements
must be used individually and with whole
groups.
• Students should not be selling pass cards door
to door.
• Begin submitting timely audited financials
yearly.
Booster Club Forms
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Budget
Annual Report
Fund Raising Application
Contribution Acknowledgment Form
Certificate
Audit Report
Statement of Purpose
• Link to forms http://www.lisd.net/apps/pages/index.jsp?uREC_ID
=129237&type=d&pREC_ID=481548
IRS/State Information
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.
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. Link provided on athletic website.
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.
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 AP201.http://www.window.state.tx.us/taxinfo/taxforms
/ap-201.pdf (no fee)
IRS and State Processes
• 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)
UIL Requirements
UIL Guidelines for Roles of Booster Clubs
Booster Clubs should develop and annually review policies to cover the
following:
o how to obtain administrative approval before beginning projects
o how to plan and publicize meetings;
o bookkeeping and fund administration including process to obtain
superintendent’s approval prior to raising or spending funds;
o election of officers;
o taking, distributing and filing minutes;
o public communication;
o proper interaction with fine arts directors and academic and athletic
coaches;
o a sportsmanship code governing behavior of booster club members and
fans at contests, treatment of officials, guests, judges, etc.;
o plans to support the school regardless of success in competition, keeping
the educational goals of competition at the forefront of all policies.
Authoritative Guidelines
Authoritative Guidelines
• Booster Clubs and Parent Groups represent
the school they support. It is necessary to
follow the guidelines set forth in federal and
state law as well as UIL and district guidelines.
• Training is done to protect our parents,
patrons, and most importantly, our students.
All laws and district policies must be followed.
Authoritative Guidelines
• Booster Clubs are governed by various
entities. The School District has 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.
Authoritative Guidelines
• The UIL Booster Club Guidelines do not
necessarily include all rules that may apply to
your organization. For specific questions, you
should contact the UIL directly.
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
Authoritative Guidelines
The required federal regulatory information discussed does not
include all laws or rules that may apply to your particular situation.
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.
Authoritative Guidelines
Booster Club officers are solely responsible for
ensuring that their Booster Club is in compliance
with all federal 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 all
federal agencies. However, the District has provided
the following information that includes steps Booster
Clubs should take to comply with federal tax
regulations.
Required Forms to Principal
Required Forms Submitted To Principal
• Booster Club/Organization Statement of
Purpose
• Booster Club/Organization Budget
• Booster Club/Organization Annual Report
• Permission to Collect Funds Form
• Contribution Acknowledgement FormPrincipal 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.
Required Forms Submitted To Principal
• 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.
LISD Special Information
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.
• It is the recommendation of the school district
that individuals not hold debit cards. This
includes the coaches or sponsors who
represent the group Booster Club is
supporting.
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.
Special Note:
• 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).
Special Note:
• 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.
Special Note:
Music Boosters
• However, educational components need not
be limited to performances. Concert
attendance, visiting university/conservatory
music facilities and other music related nonperforming opportunities would be
appropriate if approved by the Board.
References
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 1-512-4715883
• 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
District Contacts
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Tim Ford (Athletics) 469-713-5209
Jan Lowrey (Athletics) 469-713-5209
Cristie Liles (Athletics, Cheer) 469-713-5209
Bill Watson (F. Arts, Drill Team) 972-350-4715
Rhonda Godbey (West Zone) 972-350-4737

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