These guidelines are designed to assist Booster Club officers and their members with a basis for organizational and financial guidance.
STANDARDS FOR MEETING
ELECTION OF OFFICERS
Officers may be elected in a variety of methods (simple majority, secret ballot) in accordance with the organization’s bylaws. The election of officers should be from a slate of officers presented by the nominating committee. Recommendations may also be taken from the floor at the time of the vote in accordance with Roberts Rules of Order. At no time should officers be appointed without the input and approval of the membership.
President: The President shall be the chief executive officer of the club. It shall be his or her duty to preside at all meetings; to have general and active management of the business of the booster club; to see that all orders and resolutions are carried into effect; to executed all contracts, agreements, and other obligations and instruments in the name of the booster club. He or she shall have the general supervision and direction of the officers of the booster club and shall see that their duties are properly performed. He or she shall be ex-officio a member of all standing committees and shall have the general duties and powers of supervision and management usually vested in the office of president of a company.
Vice President: The vice-president acts as the president’s representative in his/her absence. They must remain familiar with the organization. The major duties include, but are not limited to, the following:
• Preside at meetings in the absence or inability of the president to serve;
Note: Larger booster organizations may find it necessary to elect several vice presidents with responsibility over differing areas. Such positions shall be clearly defined in the bylaws of the organization.
Secretary: The secretary shall attend all meetings of the booster club and the executive committee, if any. He or she shall act as clerk thereof and shall record all of the proceedings of such meetings in a book kept for that purpose. He or she shall give proper notice of meetings and shall perform such other duties as the executive board may from time to time prescribe or require. The major duties include, but are not limited to, the following:
• Report on any recommendations made by the executive board of the booster organization if such a governing board is defined by the bylaws;
Treasurer: The treasurer shall have custody of the funds and securities of the booster club and shall keep full and accurate accounts of receipts and disbursements in books belonging to the booster club and shall deposit all moneys and valuable effects in the name and to the credit of the booster club in such depositories as may be designated by the executive board. He or she shall disburse the funds of the booster club in such depositories as may be ordered by the executive board, executive committee or directors, taking proper vouchers for such disbursements, and shall render to the directors, whenever they may require it, an account of all his or her transactions as treasurer and the financial condition of the booster club at the regular meeting. He or she shall perform such other duties as the executive board may from time to time prescribe or require. The major duties include, but are not limited to, the following:
• Serve as chairperson of the Budget and Finance Committee if prescribed within the bylaws of the organization;
Note: Due to the increasing requirements placed on charitable organizations by the Internal Revenue Service, it is strongly recommended that the Treasurer have an accounting background.
President Elect: The president elect shall operate in the capacity of vice president, paying particular attention to the duties of the president. The following year the president elect will reside as president. He or she shall perform such other duties as the executive board may from time to time prescribe or require.
VP Public Relations: Responsibilities include media exposure, working liaison between coaching staffs and booster club, Administrative support liaison between the main boosters and all other booster clubs.
Media Relations Chairperson: Responsible for providing exposure and awareness of school functions (i.e. games, rally’s, special events). In charge of placing and securing various media advertisements. Develops and implements campaign to contact media reporters and staff to increase event attendance. In charge of arranging booster and club meetings for use of school facilities. Develops future media contact campaigns (i.e. e-mail, fax, etc.).
Newsletter Chairperson: Responsible for gathering articles and publishing the monthly newsletter.
Membership Chairperson: In charge of developing and implementing membership drives, media packets and promotional literature. Works to educate coaching staffs as to the value of the booster club.
VP Fundraising: Develops annual schedule of events, oversees all fundraising activities to insure they fall within the schools guidelines and that no two groups are in conflict or competition. Works to develop an alliance with local businesses to help fund annual events.
Corporate Relations Chairperson: Primary focus is to develop a working relationship with local companies. Develops and implements a “business awareness” packet that is given to local businesses to make aware of the boosters/school’s mission. Works with co-chairpersons to insure each event is successful.
Raffles Co-Chairperson: In charge of developing and overseeing the various club raffles. Works to insure no conflict between the various booster clubs and helps to implement policies and procedures for conducting raffles.
Golf Tournament Co-Chairperson: In charge of developing the tournament schedule, vendors, sponsors, and works with media relations co-chairperson for exposure of the even.
Food Event Co-Chairperson: Oversees event and works with VP of Fundraising to secure food, drinks, etc. Works with media chairperson to secure exposure.
VP Activities: Works to develop awareness of the various school activities and functions. Works with co-chairpersons to insure we are staffed so that no “one person” becomes overwhelmed with their respective duties. Develops a policy that will insure all activities receive equal exposure.
Concessions Chairperson: In charge of overseeing all concession events, inventory control, buying, and scheduling. Works with Public Relations to insure that all clubs are offered the opportunity to co-participate with concessions during the year. Makes sure concessions are stocked and open for all events. Performs annual audit at the end of the school year.
Clothing Chairperson: In charge of buying, inventory, design and product conformity. To oversee the selling of booster clothing at the maximum number of school events as possible (i.e. Freshman Orientation, Sports Clearance Night, Open House, Games).
VP Special Needs: Works to insure all groups and clubs are provided fair and equal opportunities. Works with the AD, coaching staffs and clubs to develop “wish lists” and implement plan of actions.
Parliamentarian: The primary duty of the parliamentarian is to advise the presiding officer on parliamentary law and matters of procedure when requested. The president or presiding officer of the organization alone has the power to make decisions or rule on a point of order. Thus, after the parliamentarian has given his advice, the presiding officer must make the ruling to the organization – he is not obligated to follow the recommendation of the parliamentarian. The parliamentarian should be thoroughly familiar with the bylaws and any standing rules of the group on which he serves. A copy of Roberts Rules of Order Newly Revised should be maintained by the organization and referenced as needed.
Special Committees: Special committees are created for a specific purpose and voted upon by the membership. The committee is automatically dissolved as soon as that purpose is accomplished and the committee report is made.
Nominating Committee: The nominating committee is formed from the organization’s membership each year. The purpose of the committee is to recommend various members of the organization for office in the coming year. The nominating committee should be charged with soliciting recommendations for officer positions within the organization. The committee should then contact the potential candidate directly to ascertain their willingness and desire to serve. The nominating committee should report back to the membership on their results so that elections may be held.
Audit Committee: At the end of the fiscal year, an audit of the booster club’s financial records should be conducted. The audit should be performed by someone who is independent from day-to-day financial activities. Ideally, this audit should be performed by a group of three individuals; however, if the membership size does not allow, the audit may be performed by two individuals. The primary objectives of the audit are to:
• Verify the accuracy of the Treasurer’s financial reports;
The audit committee shall make a report to the general membership upon completion of the audit. Any discrepancies noted shall be brought to the attention of the president of the organization and a resolution reached prior to presentation. All officers of the organization shall make records available as requested by the committee.
State and Federal Reporting
Application for State Registration
• Booster Clubs must file its articles of incorporation with the Secretary of State’s office as a non-profit association. Typically, an attorney licensed in the State completes the articles of incorporation. Further information may be obtained on the Secretary of State’s web.
• Each organization must file for an employer identification number on Form SS-4, Application for Employer Identification Number. It is possible to apply for an employer identification number via a telephone call. The employer identification number will be issued immediately by the Internal Revenue Service during the call process. However, the organization is still required to file a form SS-4 with the IRS.
• In most cases the booster club can apply for an exemption from sales and franchise tax from the Comptroller’s office. This is done by written request, which includes a description of activities, copies of articles and bylaws. The state may require you to wait until you have filed for Federal tax exemption before they will issue you this exemption. If this is the case you will need to file a copy of the IRS letter granting tax exemption at the time of your request.
Application for Federal Tax Exempt Status
• General instructions for federal tax exemption may be found in IRS Publication 557, Tax-Exempt Status for Your Organization.
• The booster organization must apply for exempt status on Form 1023, Application for Recognition of Exemption Under Section 501(c)(3).
• The application must be accompanied by Form 8718, User Fee for Exempt Organization Determination Letter Request, which provides a user fee to be paid to the Internal Revenue Service. Typically, this fee for groups whose yearly gross receipts average less than $10,000 is $400. For groups with gross receipts expected be average $10,000 or more the fee is $850.00.
• Each application must include a signed copy of the organization’s Articles of Incorporation filed with the state and an approved copy of the bylaws.
• Upon acceptance by the Internal Revenue Service of the organization’s exempt status, a determination letter will be sent as evidence of approval. The letter should be kept in a safe, permanent place as it will be used time and again to prove the organization’s exempt status.
• Further information may be found on the IRS web site, at http://www.irs.ustreas.gov.
Annual Filing Requirements
Every booster organization exempt from federal income tax under section 501(a) is required to determine the type of annual filing, Return of Organization Exempt from Income Tax.
Organizations with gross receipts during a year totaling $25,000 or less may qualify for the shorter version of the form, Form 990-EZ.
Even though booster clubs are recognized as tax exempt, they may be liable for tax on the portion of income deemed to be unrelated business income (“UBI”). UBI is income from a trade or business activity, regularly carried on that is not substantially related to the charitable, education or other purposes that are the basis for the organization’s exemption. An organization that has $1,000 or more gross income from UBI must file Form 990-T, Exempt Organization Business Income Tax Return. This form is filed in addition to Form 990 or 990-EZ and is required regardless of the level of the income received. More information can be obtained from Publication 598, Tax on Unrelated Business Income of Exempt Organizations.
A nonprofit organization must provide copies on request of its original application for tax exemption, including any supporting documents filed by the organization in support of its application, plus any letter document issued by the IRS in connection with the application. In addition, the organization must provide copies of its annual IRS information returns for the past three years, including all schedules and attachments. When a request for information is made in person, the booster organization is required to furnish the requested information immediately under IRS guidelines. If the request is in writing, the documents must be furnished within 30 days from the date of the request.
Organizations are exempt from the above requirements if they have made the documents widely available, such as posting them on a web site, or if it can be demonstrated that the requests are part of a harassment campaign. If the organization elects to post the information on a web site, specific IRS criteria must be followed which produces an exact reproduction of the information – HTML format is not acceptable.
Accounting for Transactions
Method of Accounting
There are a wide variety of computerized accounting packages available to assist your booster club in accurate financial reporting – manual record keeping is not the recommended method of reporting. Rather, each booster club should adopt an accounting package or computerized accounting method to be used for several fiscal years. Establishing records in a spreadsheet format is perfectly acceptable, although somewhat cumbersome. It is preferable to adopt an accounting package for long-term use. The packages chosen should be reviewed on a biannual basis for effectiveness and accuracy of financial reporting. Packages should also be evaluated based upon their ease of use and overall cost, both financial and training, to the organization.
At a minimum, the membership should be provided with a financial statement and bank reconciliation at each meeting. The financial statement should detail the budget to actual expenditures and receipts. Cash receipts and disbursement reports should be available for review when needed or at the annual audit.
Cash Receipt Procedures
All cash collections received by the booster club for fees, dues, fund raising, etc. must be deposited upon receipt. All funds must be supported by some type of record documenting the source and amount of funds (tabulation of monies collected form, cash receipt form, ticket sales record, etc.). Such documentation shall be readily available for audit purposes.
Deposits shall be made daily if the total receipts on hand exceed $250. If daily receipts are less than $250, deposits shall be made within one week even if the receipts for all days combined are less than $250.
Bank deposits should be prepared as follows to ensure the integrity of the financial reporting:
1) Separate all currency and coins by denomination and carefully count and record it in the appropriate section of the bank deposit form.
Each booster club may maintain a petty cash account. Strict controls must be maintained by keeping petty cash in a locked box accessible by only the treasurer and one other officer. PLEASE NOTE: Control of the petty cash account by a school district employee is usually not allowed. The petty cash funds should be used for emergency purchases only. All other purchases should be made with a booster club check.
Upon receipt of the monthly bank statement, the balance indicated on the statement shall be reconciled to the bank account balance in the general ledger as of the last day of the month.
To complete the General Ledger side of the reconciliation form, perform the following:
• Indicate cash account ending balance from the general ledger.
Compare the adjusted bank balance to the adjusted cash balance to make sure that they are in agreement. If they are not, the reconciliation is NOT complete. Examine the prior month’s reconciliation to ascertain that all items have been posted and/or corrected.
If at all possible, a computerized reconciliation program should be used in conjunction with the booster club’s financial package.
Disbursement of Funds
All requests for disbursement must be made from established budget line items. If a request exceeds the budget or is for an item not previously included in the budget process, a vote of the membership must be taken prior to expenditure. Direct payments and gifts to employees and alcoholic purchases are not permitted uses of booster funds.
A disbursement voucher should be completed for all expenditures regardless of the amount. The appropriate supporting documentation (invoices, receipts) should then be attached to the disbursement form and filed in check number order. At no time should a check be issued without the appropriate supporting documentation.
Internal Revenue Service guidelines require that all payments for services in excess of $600.00 made to an individual or company by a booster club be reported on a form 1099 on an annual basis. The booster club should secure an IRS form W-9 from the provider at the time of service to ensure that the booster club has an accurate record of the tax payer identification number. The booster club must then issue a form 1099 to all qualifying vendors performed in the calendar year by January 31st. The following guidelines can be used to determine if reporting is required:
• Risk of profit of loss – Independent contractors realize a profit or sustain a loss based on their success in performing the work or service.
The Internal Revenue Service web site should be accessed for appropriate 1099 reporting requirements and forms at http://www.irs.ustreas.gov.
Taxable Status of Purchases
• A booster club must provide the vendor with a valid signed exemption certificate when claiming state sales tax exempt status. Exemption certificates do not require numbers to be valid nor is the vendor required by law to honor the exemption.
Collection and Remittance of Sales Taxes
The booster club shall collect sales tax on all taxable sales according to their State tax.
Taxable Status of Sales
Booster clubs need not collect sales tax on the following:
• Admission tickets;
Sales tax should be filed in accordance with the State Comptroller’s guidelines (typically on an annual basis). Further information can be found on your State Comptroller’s web site.
General Fundraising Policies
The IRS has a strict rule against private inurnment – the transfer of any of an organization’s assets to, or for the benefit of, an individual for a nonexempt purpose. Therefore, individuals may not control any fundraising accounts set-up in their name, nor may they withdraw funds from the “accounts” to use as they wish. The tax-exempt organization must at all times determine how its funds, even funds credited to an individual with respect to their fundraising efforts, are used. And, all funds must be used for the organization’s tax-exempt purposes.
The IRS also prohibits earmarking of contributions. You cannot make a tax-deductible contribution to a tax-exempt organization and earmark or designate the funds donated for the support of a specific individual. If you could, parents could make tax-deductible contributions that they earmarked to pay for specific expenses of their own child.
• Each ticket must indicate the name and address of the organization, name of an officer, price of the ticket and a description of each prize valued at $10 or more. For prizes valued in excess of $10,000, check with your state gambling regulations to insure compliance;
A booster club should review all applicable state and federal regulations for bingo. Detailed rules may be obtained from the State Lottery Commission by requesting a copy of the States Bingo Act, the Charitable Bingo Rules and Bingo Operations Manual. In most all cases a Charitable Bingo may not be advertised prior to actually receiving a license from your state. You will need to review the state requirements, which traditionally include the maximum number of events allowed per year.
• The game must be open to the public;
DONATIONS TO STUDENTS: Booster Clubs are discouraged from giving gifts to students and those engaged in extracurricular activities. Depending upon the student’s status providing a gift may be a violation of the state or collegiate regulations.
DONATIONS TO BOOSTER CLUBS: To be deductible as a charitable contribution, a payment to a booster club must be a gift. A gift to a booster club is a payment of money or transfer of property without receipt of adequate consideration, and must be done so with a true donation intent. Generally Accepted Accounting Principles require that the asset be recorded at its fair market value at the time of the donation.
The NBCTC encourages scholarship programs which meet the following criteria:
• The application process must be clearly communicated, and the application forms must be readily available to all potential applicants and their parent and/or guardian.
Discounted Bulk Mail
To be eligible for the minimum rate per piece, the booster club should apply to the local post office for a nonprofit permit by providing the postmaster with the following:
• A copy of the Internal Revenue Service exemption ruling;
When mailing by bulk third class, there must be no less than 200 pieces, which must be identical in size, weight, number of enclosures and content. The pieces must be pre-sorted by zip code and bundled with an identifying label on each bundle. In order to ensure compliance with bulk mail regulations, it is recommended that you have the local post office review all the pieces prior to printing to make sure that the organization meets all the requirements for bulk mailing.
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