BOOSTER CLUB BOOSTER CLUB TRAININGTRAINING

Department of AthleticsDepartment of Athletics

Temple Independent School Temple Independent School DistrictDistrict

Booster Club WebsiteBooster Club Website

www.tisd.org– Hover over “Parents”Hover over “Parents”– Select “Athletics”Select “Athletics”– Select “Booster Clubs”Select “Booster Clubs”

Board PolicyBoard Policy

GE LocalGE Local– The Board is responsible for the oversight The Board is responsible for the oversight

of the District including parent or booster of the District including parent or booster organizations that use the school name or organizations that use the school name or claim any connection with the school. The claim any connection with the school. The Board shall approve and recognize only Board shall approve and recognize only those organizations that meet established those organizations that meet established guidelines and, in the opinion of the Board, guidelines and, in the opinion of the Board, operate for the benefit of the school and operate for the benefit of the school and its studentsits students

Board PolicyBoard Policy

Required DataRequired Data– Purpose and operational guidelinesPurpose and operational guidelines

Constitution, Bylaws, goals, etcConstitution, Bylaws, goals, etc

– Constitution and guidelines for Constitution and guidelines for operationoperation

– List of officersList of officers– Financial goalsFinancial goals– Audit of all funds upon requestAudit of all funds upon request

Board Policy (cont)Board Policy (cont)

Specific GuidelinesSpecific Guidelines– Superintendent or principal has veto power over Superintendent or principal has veto power over

any action of the clubany action of the club– No authority to direct any school employee in any No authority to direct any school employee in any

of his or her dutiesof his or her duties– No authority to guide, direct, or establish No authority to guide, direct, or establish

guidelines for any school activityguidelines for any school activity– All individuals should be eligible for membershipAll individuals should be eligible for membership– Election of officers should be on a systemic basisElection of officers should be on a systemic basis– If Club disbands, ceases to operate all funds and If Club disbands, ceases to operate all funds and

property become the property of the Temple ISDproperty become the property of the Temple ISD

Board Policy (cont)Board Policy (cont)

Specific Guidelines (cont)Specific Guidelines (cont)– Clubs must abide by UIL Booster Clubs must abide by UIL Booster

Club GuidelinesClub Guidelines www.uil.utexas.edu www.templewildcats.tisd.org

– Club may be disbanded by the Club may be disbanded by the administration or Board if it does not administration or Board if it does not adhere to the established policies adhere to the established policies and regulationsand regulations

MeetingsMeetings

All actions of the booster club All actions of the booster club should be recorded in the should be recorded in the meeting minutesmeeting minutes

Meetings should take place on Meetings should take place on District premisesDistrict premises

Campus administrators must be Campus administrators must be invited to meetingsinvited to meetings– 72 hours notice and posting72 hours notice and posting

Internal Controls Internal Controls (Bank Accounts)(Bank Accounts)

Controls over bank accountsControls over bank accounts– Establish bank account & require Establish bank account & require

two signaturestwo signatures Recommend at least three signers on Recommend at least three signers on

bank signature cardbank signature card

– Review of bank statement and it’s Review of bank statement and it’s contents by independent party (non-contents by independent party (non-treasurer, non-signer) ***required treasurer, non-signer) ***required for fidelity bond***for fidelity bond***

Internal Controls Internal Controls (Bank Accounts)(Bank Accounts)

Controls over bank accountsControls over bank accounts– Review of bank statements (cont.)Review of bank statements (cont.)

Review front and back of check for Review front and back of check for proprietypropriety

Ensure # of cancelled checks match Ensure # of cancelled checks match number printed on bank statementnumber printed on bank statement

Compare disbursements to budget & Compare disbursements to budget & proper approval as documented in the proper approval as documented in the minutesminutes

Evaluate deposits for completenessEvaluate deposits for completeness

Internal Controls Internal Controls (Bank Accounts)(Bank Accounts)

Controls over bank accounts Controls over bank accounts (cont)(cont)– Bank reconciliations completed Bank reconciliations completed

within 30 dayswithin 30 days– Review and sign-off of bank Review and sign-off of bank

reconciliation by independent partyreconciliation by independent party

Internal Controls Internal Controls (Cash)(Cash) Controls over cash & receiptsControls over cash & receipts

– Deposits made daily for $250 or moreDeposits made daily for $250 or more– Receipts supported by documentationReceipts supported by documentation

Cash ReceiptCash Receipt Ticket sales recordTicket sales record Tabulation of moniesTabulation of monies

– Cash verified under dual controlCash verified under dual control At conclusion of fundraiser & when At conclusion of fundraiser & when

changing handschanging hands

Internal Controls Internal Controls (Cash)(Cash) Cash safeguarded at all timesCash safeguarded at all times Cash should NOT be maintained Cash should NOT be maintained

at member’s homeat member’s home– Deposit funds day of events – utilize Deposit funds day of events – utilize

night dropnight drop

Internal Controls Internal Controls (Disbursements)(Disbursements)

Controls over disbursementsControls over disbursements– Complete fundraiser applicationComplete fundraiser application– Checks supported by documentationChecks supported by documentation

InvoiceInvoice ReceiptReceipt Signed and authorized by President or Signed and authorized by President or

Vice PresidentVice President

– Checks should require a second Checks should require a second signature signature

Internal Controls Internal Controls (Disbursements)(Disbursements)

Controls over disbursements Controls over disbursements (cont.)(cont.)– Blank checks should not be issued – Blank checks should not be issued –

require reimbursementrequire reimbursement– Checks should not be made out to Checks should not be made out to

“cash”– make out to individual so “cash”– make out to individual so there is accountabilitythere is accountability

Internal Controls Internal Controls (Budget/Oversight)(Budget/Oversight) Budgetary and oversight controlBudgetary and oversight control

– Approval of budgetApproval of budget– Regular written financial reports to Regular written financial reports to

membership regularlymembership regularly At a minimumAt a minimum

– Bank account balanceBank account balance– Receipt & disbursement activity since last Receipt & disbursement activity since last

meetingmeeting– Comparison of budget vs actualComparison of budget vs actual

Internal Controls Internal Controls (Budget/Oversight)(Budget/Oversight) Budgetary and oversight controls Budgetary and oversight controls

– Complete a financial recap at end of Complete a financial recap at end of fundraiserfundraiser

– Audit by independent individuals Audit by independent individuals ***required for fidelity bond******required for fidelity bond***

Financial Controls Financial Controls ChecklistChecklist Posted to Booster Club websitePosted to Booster Club website Helps to evaluate what controls Helps to evaluate what controls

you have in place and what needs you have in place and what needs to improveto improve

Insurance CoverageInsurance Coverage

May or may not need depending May or may not need depending on size of organization and on size of organization and funding availabilityfunding availability

Liability insuranceLiability insurance– General liability – protects booster General liability – protects booster

club and membersclub and members– Officer’s liability – protects officers Officer’s liability – protects officers

for decisions madefor decisions made

Insurance Coverage Insurance Coverage (cont)(cont) Liability InsuranceLiability Insurance

– Business personal property – Business personal property – protects computers, fundraising protects computers, fundraising merchandise, etcmerchandise, etc

– Fidelity (bond) coverage – protects Fidelity (bond) coverage – protects funds from fraud, embezzlement, funds from fraud, embezzlement, robbery, and theftrobbery, and theft Must have certain financial controls in Must have certain financial controls in

place to qualify for fidelity coverageplace to qualify for fidelity coverage

Submission of Submission of Financials & Audit Financials & Audit ReportsReports Submission of financial reports Submission of financial reports

– Deadline January 31 for period Deadline January 31 for period ended Dec. 31ended Dec. 31

– Deadline July 31 for period ended Deadline July 31 for period ended June 30June 30

FundraisingFundraising

No longer allowed – violates IRS No longer allowed – violates IRS provisions:provisions:– Individual accountsIndividual accounts– Required participation in fundraisingRequired participation in fundraising– Required sales quotasRequired sales quotas

FundraisingFundraising

Booster clubs may have (school Booster clubs may have (school clubs may not):clubs may not):– Raffles – must be a 501(C) (3) Raffles – must be a 501(C) (3)

organizationorganization– Bingo – must be a 501(C) (3)Bingo – must be a 501(C) (3)

Specific rules apply to bothSpecific rules apply to both

ScholarshipsScholarships

Checks written to university (not Checks written to university (not student, after receipt/invoice student, after receipt/invoice provided – prefer funnel through provided – prefer funnel through campus for better trackingcampus for better tracking

Consult principal and/or counselor Consult principal and/or counselor for helpfor help

Scholarships – should be small Scholarships – should be small portion of budgetportion of budget

Benefits of Becoming a Benefits of Becoming a 501(c)(3)501(c)(3) Tax BenefitsTax Benefits

– Revenues raised by organization are Revenues raised by organization are generally not taxablegenerally not taxable

– Contributions to 501(c)(3) are tax Contributions to 501(c)(3) are tax deductible by the contributordeductible by the contributor

– Can qualify for sales tax exemption Can qualify for sales tax exemption through State of Texasthrough State of Texas

– Ability to hold raffles and conduct Ability to hold raffles and conduct bingobingo

Benefits of Becoming a Benefits of Becoming a 501(c)(3)501(c)(3) Legal BenefitsLegal Benefits

– Potential for reduced individual Potential for reduced individual liability from incorporation (should liability from incorporation (should obtain legal advice regarding legal obtain legal advice regarding legal liability and insurance protection)liability and insurance protection)

Obtaining 501(c)(3) Obtaining 501(c)(3) Part 1Part 1 File certificate of formation as a File certificate of formation as a

nonprofit association with Texas nonprofit association with Texas Secretary of StateSecretary of State

Obtain employer identification # via Obtain employer identification # via Application for Employer Identification Application for Employer Identification Number, Form SS-4 – Done online – IRS Number, Form SS-4 – Done online – IRS

Complete Application for Recognition Complete Application for Recognition of Exemption Under 501(c)(3) of of Exemption Under 501(c)(3) of Internal Revenue Code, Form 1023Internal Revenue Code, Form 1023

Obtaining 501(c)(3) Obtaining 501(c)(3) Part 2Part 2 Include user fee of $400 or $850 (depending Include user fee of $400 or $850 (depending

on whether average annual revenues are on whether average annual revenues are less than or greater than $10,000)less than or greater than $10,000)

Form 1023 not required if gross receipts Form 1023 not required if gross receipts <$5,000 per yr. (may still be recommended)<$5,000 per yr. (may still be recommended)

Upon approval, receive Determination Letter Upon approval, receive Determination Letter stating effective date of tax-exempt status stating effective date of tax-exempt status (cannot represent as tax-exempt until then)(cannot represent as tax-exempt until then)

Obtaining 501(c)(3) Obtaining 501(c)(3) Part 3Part 3 IRS Publication 557, Tax Exempt IRS Publication 557, Tax Exempt

Status for Your Organization, Status for Your Organization, covers the rules and procedures covers the rules and procedures for organizations that seek for organizations that seek recognition of exemption from recognition of exemption from federal income taxfederal income tax

IRS – Form 990 (part 1)IRS – Form 990 (part 1)

Due 4 ½ months after year end (May 15Due 4 ½ months after year end (May 15thth if using if using calendar year)calendar year)

Schedule A required to be included with 990 filingSchedule A required to be included with 990 filing Can file Form 990-EZ instead if gross receipts are Can file Form 990-EZ instead if gross receipts are

below the following threshold amounts:below the following threshold amounts:– $100,000 for years beginning before 2008$100,000 for years beginning before 2008– $1,000,000 for years beginning in 2008$1,000,000 for years beginning in 2008– $500,000 for years beginning in 2009$500,000 for years beginning in 2009– $200,000 for years beginning after 2009$200,000 for years beginning after 2009

Can file Form 990-N instead if gross receipts are Can file Form 990-N instead if gross receipts are below $25,000below $25,000

IRS – Form 990 (part 2)IRS – Form 990 (part 2)

For years beginning after January 1, 2008, For years beginning after January 1, 2008, Form 990 overhauled, eligibility for 990-Form 990 overhauled, eligibility for 990-EZ expanded.EZ expanded.

Unrelated business income tax – may be Unrelated business income tax – may be liable (income from trade/business that is liable (income from trade/business that is regularly carried on and not substantially regularly carried on and not substantially related to charitable purpose for which related to charitable purpose for which established)established)– Example 1: advertising vs sponsorship Example 1: advertising vs sponsorship

incomeincome

IRS – Form 990 IRS – Form 990 (part 3)(part 3) IRS Publication 598 – Tax on IRS Publication 598 – Tax on

Unrelated Business Income of the Unrelated Business Income of the Exempt OrganizationExempt Organization

Public disclosure – what is required: Public disclosure – what is required: Application for Tax Exemption, Application for Tax Exemption, Form 1023; Determination Letter; Form 1023; Determination Letter; Annual Form 990 (last three years)Annual Form 990 (last three years)

www.guidestar.orgwww.guidestar.org

Tax Exempt Status Tax Exempt Status Do’s & Don’tsDo’s & Don’ts Activities must benefit the group as a whole instead Activities must benefit the group as a whole instead

of benefiting individual members of a groupof benefiting individual members of a group Cannot use individual accounts to benefit only Cannot use individual accounts to benefit only

certain individuals with revenues raisedcertain individuals with revenues raised Cannot require a person to participate in Cannot require a person to participate in

fundraising. Can have certain criteria met for fundraising. Can have certain criteria met for member to receive benefit – attendance at member to receive benefit – attendance at meetings, events, etc. – but not fundraisingmeetings, events, etc. – but not fundraising– Benefits reduction must not affect student only parent Benefits reduction must not affect student only parent

member – not voting rights, no eligibility for officer electionsmember – not voting rights, no eligibility for officer elections Cannot require that a certain amount be raised or Cannot require that a certain amount be raised or

sold per personsold per person

Other Compliance Other Compliance (part 1)(part 1) Other IRS IssuesOther IRS Issues

– 1099 reporting – all payments for services 1099 reporting – all payments for services of $600 or greater made to an individual of $600 or greater made to an individual or unincorporated business reported on or unincorporated business reported on 1099 on or before Jan. 311099 on or before Jan. 31stst of following of following yearyear

Should have IRS form W-9 completed by Should have IRS form W-9 completed by provider at the time of service to obtain provider at the time of service to obtain information neededinformation needed

Other Compliance Other Compliance (part 2)(part 2) Texas issuesTexas issues

– Exemption from sales tax and Exemption from sales tax and franchise tax – State Comptroller’s franchise tax – State Comptroller’s officeoffice Done separately and in addition to IRS Done separately and in addition to IRS

tax-exemptiontax-exemption Must be 501(c)(3) to qualifyMust be 501(c)(3) to qualify

– Texas Application for ExemptionTexas Application for Exemption

Other ComplianceOther Compliance(part 3)(part 3) Purchases by ClubPurchases by Club

– Sales tax permit – sales tax exemption applies to Sales tax permit – sales tax exemption applies to purchase, lease or rent of taxable items that are purchase, lease or rent of taxable items that are necessary to organization’s exempt functions, but not necessary to organization’s exempt functions, but not salessales

– Provide exemption certificate at time of purchaseProvide exemption certificate at time of purchase Cannot use tax-free items for personal benefitCannot use tax-free items for personal benefit Items which become the personal property of individuals are not Items which become the personal property of individuals are not

exempt from taxexempt from tax

Sales by ClubSales by Club Must obtain sales tax permit to collect and remit sales tax on Must obtain sales tax permit to collect and remit sales tax on

taxable salestaxable sales Two tax free sales per year – qualifying organizations only (501(c)Two tax free sales per year – qualifying organizations only (501(c)

(3))(3)) If resale of items, provide re-sale tax exemption form to vendor at If resale of items, provide re-sale tax exemption form to vendor at

time of purchasetime of purchase

Club’s Permanent Club’s Permanent RecordsRecords IRS Determination LetterIRS Determination Letter IRS Application for ExemptionIRS Application for Exemption Annual Form 990’sAnnual Form 990’s Employer Identification Number Employer Identification Number

(EIN), Form SS-4(EIN), Form SS-4 Exemption letter from State Exemption letter from State

ComptrollerComptroller