Booster Clubs
and
School Support Organizations
Guidelines Training
May 29, 2009
Welcome

DeAnne Hatfield, RTSBA
Executive Director of Business Services
dhatfield@nisdtx.org 817-215-0041

Jerhea Nail
Special Assistant to the Superintendent
jnail@nisdtx.org 817-215-0144

Kitty Poehler
Director of Personnel Services
kpoehler@nisdtx.org 817-215-0071
Agenda
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Guidelines
Organization
State and Federal Reporting
Sales Tax
Accounting for Transactions
Fund Raising
Donations
Scholarship Programs
District Services
Guidelines
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UIL Booster Clubs
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School Support Organizations
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Role of the Organization
UIL Booster Club
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The UIL states that booster
clubs are formed to help enrich
the school’s participation in
extracurricular activities.
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Fund Raising projects are
subject to state laws and local
school district guidelines and/or
policies.
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All meetings should be open to
the public with prior notice
given and meeting minutes
kept.
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Non-Profit status should be
obtained from the IRS.
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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.
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Fund Raising is a major part of
the booster club activities.
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Funds collected must be used
to support school activities.
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
School Support Organizations
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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.
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The mission of the PTA is:
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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;
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to assist parents in developing the skills they need to raise and protect
their children; and
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to encourage parent and public involvement in the public schools of this
nation.
Role of the Organization
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Booster Clubs and School Support Organizations
shall organize and function
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in a way that is consistent with the District’s
philosophy and objectives
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with adopted Board policies
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in accordance with UIL regulations as applicable
Organization
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Bylaws
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Officers
Organization Bylaws
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Each booster/school support organization must
maintain bylaws.
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Bylaws must be reviewed jointly by the school
principal/designee and the organizations’
executive officers.
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The bylaws must address rules for membership
in the organization, the fiscal year, and the
structure and method to be used to elect
officers.
Organization Officers
•
Below is a diagram indicating the minimum number of officers for a booster/school support
organization.
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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.
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Larger organizations may elect several vice presidents with responsibility over different
areas.
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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.
President
Vice President
Secretary
Treasurer
Parliamentarian
Liability Insurance
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Booster Clubs and School Support Organizations are independent;
therefore not covered by District insurance policies.
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General Liability – protects your organization if someone is injured at
event
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Accident Medical – provides medical coverage for risks specifically
excluded from the liability policy such as mechanical rides, school
buses, automobiles and water craft
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Bond – covers anyone entrusted with organization’s money
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Property – protects raffle merchandise, auction items and fundraising
supplies while in your possession
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Officers’ Liability – protects officers for any decision making
State and Federal Reporting
State and Federal Reporting
Application for Federal Tax Exempt Status
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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
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Each organization must file for an employer
identification number.
State and Federal Reporting
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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.
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The organization must apply for their own sales permit from the
Comptroller’s office.
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You must obtain sales and use tax permit if you are engaged in
business in Texas and you:
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Sell tangible personal property in Texas
Lease tangible personal property in Texas; or
Sell taxable services in Texas
Further information from the Comptroller’s office may be found at
www.window.state.tx.us
State and Federal Reporting
Annual Filing Requirements
Public Disclosure
•
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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.
More information can be obtained from Publication 598, Tax
on Unrelated Business Income of Exempt Organizations.
All non-profit organizations must
comply with the timelines and
established by the Texas Public
Information Act. Texas
Government Code Chapter 552.
Sales Tax
Sales Taxes
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Organization must provide a vendor with a valid signed exemption
certificate when claiming exempt status.
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The NISD exempt status can not be utilized by a booster/school support
organization. Each organization must apply and receive their own
exempt status.
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Items that become personal property of the student are not exempt.
Awards given to students by the organization are exempt.
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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.
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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.
Accounting for Transactions
Accounting for Transactions
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The membership of the organization should be provided with a
financial statement and bank reconciliation at a regular meeting at
least once per month.
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The financial statement should detail the budget to actual
expenditures and receipts.
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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.
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Cash receipts and disbursement reports should be available when
needed for the annual audit.
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District employees and individuals who actively coach or direct a UIL
Activity should NOT have control or signature authority over an
organization’s funds.
Cash Receipt and Petty Cash
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All cash collections for fees, dues, and fundraising must be
deposited upon receipt.
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All funds must be supported by some type of record documenting
the source, amount, and be available for audit purposes.
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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.
Bank Account
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To open bank account, the organization must obtain
Employer Identification Number (EIN) from the IRS
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Suggested that at least two (2) officers be signers
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Reconcile bank statement monthly
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District employee may not be the signer on
organization’s bank account
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District employee cannot serve as Treasurer
Bank Reconciliation and
Disbursement of Funds
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Each month the balance indicated on the statement shall be
reconciled to the account balance as of the last day of the month.
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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.
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A disbursement voucher should be completed for all expenditures
regardless of amount.
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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.
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.
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The 1099 form must be issued to qualified vendors by
January 31st for the previous calendar year.
More information for the appropriate 1099 forms can be found at www.irs.ustreas.gov
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.
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GASB 39 Information Form
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Submit to the District’s Financial Services Department no later
than August 1, annually
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Include financial records year ending June 30th
Fund Raising
Fund Raising
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What is a Fund Raiser?
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Planned – Scheduled – Anticipated
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Event
Activity
Product Sale
Service
All booster/school support organizations shall
complete and submit a fund raising application
and receive the approval of the campus principal
or designee.
Donations
Donations
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School district staff and students are discouraged from accepting
gifts of value.
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Students in UIL activities shall not accept gifts except as provided by
the UIL Constitution and Contest Rules.
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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.
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A gift that may impact a campus (i.e. facility, grounds,
infrastructure, technology, or curriculum) must have prior approval.
Scholarship Programs
Scholarship Programs
The District encourages scholarship
programs that benefit students
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Scholarships for a Graduating Senior
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Student Scholarships for Campus Related Activities
District Services
District Services
District services available to booster clubs/school
support organizations
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Printing services are available at the cost of the service
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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.
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Catering services are available through ARAMARK, the District Food
Service Provider.
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Armored Car Service is not available through the District.
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Employer Identification Number is not available through the District.
Summary
Tools for Success
Should….
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Be voluntary and provide unified
support for student activities of the
school.
Encourage involvement by all parents
of students participating in the
supported activity.
Hold public general meetings with
notice of the meeting given.
Have a campus administrator and/or
designee present at all meetings.
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.
Obtain the tax exempt status 501(C)(3)
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.
 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.
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Tools for Success
Should Not…
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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.
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 a member any gift without the
approval of club membership.
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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.
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.
Questions ?