Financial Update for PTOs and Booster...
23
Financial Update for PTOs and Booster Clubs Beaufort County School District September 30, 2014
Transcript of Financial Update for PTOs and Booster...
Financial Update for PTOs and
Booster Clubs Beaufort County School District
September 30, 2014
What Kind of PTO/Booster Club Parent are you?
The Ruler
2
Starting a PTO, PTA,
or Booster Club
3
Establishing a PTO or
Booster Club
1. Determine the name of the organization and its
fiscal year end
2. Obtain a Tax ID number (EIN)
• Easy to get on-line at www.irs.gov
• CANNOT USE THE SCHOOL DISTRICT EIN
3. Open a bank account
4
Establishing a PTO or
Booster Club continued…
4. Register with the Secretary of State
– www.scsos.com
• Articles of incorporation of a not-for-profit
organization (need required IRS language)
• Registration statement for Charitable Organizations
– Most PTA, PTO and Booster Club organizations
are exempt from registration but an Application
for Exemption from Registration must be filed
• Annual Financial Report (many PTO/PTA
organizations probably qualify for exemption-there is
a separate form to request exemption)
5
Establishing a PTO or
Booster Club
5. File for 501(c)(3) status –IRS form 1023
• Provides exemption from federal income tax
under 501©(3) of the Internal Revenue Code
• Benefit
• Donations are tax deductible
• Purchases are tax exempt
• Annual filing requirements (form 990)
6
Applying to be Tax Exempt
– https://www.youtube.com/watch?feature=player_
detailpage&v=-dcLKBlN8hM
7
Gross Receipts Application Annual form
990?
$5,000 or less none 990-N
$5,001-$50,000 1023-EZ (new) 990-N or 990-EZ
>$50,000 1023 990
Consequences of not filing
annually
• 3 consecutive years
• Revoke tax exempt status
• Donations are not tax deductible
• Must reapply for tax exempt status (form 1023)
• Pay application fee again ($400+)
Annual Filing Requirements
With Secretary of State
With IRS, for 501c3, via form 990
With School
9
General Issues
1. Elect officers
2. Establish Bylaws
3. Get Insurance
4. Establish a finance committee
10
Bylaws
• Booster Clubs should develop annual review policies to cover:
– How to obtain administrative approval before beginning projects
– How to plan and publicize meetings
– Bookkeeping and fund administration
– Election of officers
– Taking, distributing and filing minutes
– Transition of officers
– Public communication
– Proper interaction with staff
– A sportsmanship code governing behavior of members
– Plan to support the school, keeping educational goals at the forefront
11
Bylaws
Visit www.ptotoday.com, www.pta.org, or www.boosterclubs.org
12
Finance Committee
• Establish an annual budget
– Then present to full PTO for vote
• Obtain and use financial software (e.g. Excel or
QuickBooks)
• Establish financial policies and procedures
• Review annual financial reports
13
Spend Smart Elementary School
PTO Budget 2013-2014
2013-14 2013-14
Budget Actual
Income - Active Fundraising
Book Fair - Scholastic 5,500.00 6,000.00
Box Tops 2,800.00 2,000.00
Fall Festival 1,500.00 1,200.00
Spring Festival 2,500.00 2,500.00
Muffins for Moms 3,000.00 3,000.00
Doughnuts for Dads 500.00 520.00
Rubber Duck Regata 600.00 900.00
Pop Top Tabs 150.00 75.00
Coffee Cart Sales 250.00 100.00
Caring Coins 700.00 700.00
Spirit Wear 4,650.00 8,500.00
Misc. Fundraising 2,000.00 750.00
Daddy-Daughter Dance 1,000.00 600.00
Transfer to Spend Smart Elementary School 10,000.00 0.00
Sub-Total Active Fundraising 35,150.00 26,845.00
Expenses
5,500.00 600.00
Box Tops 2,800.00 600.00
Fall Festival 1,500.00 150.00
Spring Festival 2,500.00 200.00
Muffins for Moms 3,000.00 220.00
Doughnuts for Dads 500.00 100.00
Rubber Duck Regata 600.00 60.00
Pop Top Tabs 150.00 400.00
Coffee Cart Sales 250.00 640.00
Caring Coins 700.00 50.00
Spirit Wear 4,650.00 1,500.00
Misc. Fundraising 2,000.00 25.00
Daddy-Daughter Dance 1,000.00 1,500.00
Transfer to Spent Smart Elementary School 10,000.00 10,000.00
Sub-Total Expenses 35,150.00 16,045.00
0.00 10,800.00 14
Recommended Financial
Controls
• Develop and use a budget
• Perform audits annually
• Require two signatures on all checks
• Reconcile bank accounts monthly and review
• Prepare periodic financial reports
15
Recommended Financial
Controls
• No receipt, no reimbursement
• Use tickets or equivalent for reconciliation purposes
• Set up one cash point
• Deposit immediately or the next morning at the latest
16
Recommended Financial
Controls
• Bad checks
– Don’t order merchandise until deposits made
– Make sure they have name, address and phone number of
person signing check
– No post-dated or pre-dated checks
17
Fundraising
• Notify the Principal
• Must comply with District Policies:
– District Wellness Policy when involving food during school day
– Insurance (when applicable)
– Building Modification Approval
18
Raffles
• Illegal in the State of South Carolina
• Section 33-57-120 SC Code of Laws
• Legislators passed the bill
• State Referendum on Nov 4th, 2014 ballot
• Signed by Governor
19
Raffles
• Must have filed with Secretary of State (SCSOS)
• Must be a tax exempt organization
• Submit annual raffle form with $50 fee to SCSOS
• May hold up to 4 raffles per year
• 90% of net receipts of raffle must be spent on charitable
purpose
• Search on “Raffles in South Carolina”
• Vote of November 4th
Website
• This presentation is available on the District’s
website
– Parents& Students
• PTAs, PTOs, and Booster Clubs
21
Contacts
Tonya Crosby, CPA
Financial Services Officer
Email: [email protected]
Phone: (843) 322-2397
22
Reggie Murphy, CPA
Director of Internal Controls
Email: [email protected]
Phone: (843) 322-2369
We Appreciate You
