Cypress-Fairbanks Independent School DistrictBOOSTER CLUB GUIDELINES Choir Band Drill Team NFL Orchestra Sponsors Athletics Drama JROTC Project Prom Cheerleader FFA Cypress-Fairbanks Independent School District David Anthony, Ed.D. Superintendent Dear Parents: On behalf of the Cypress-Fairbanks Independent School District, I want to express my appreciation for your many hours of dedicated service in support of students involved in extra-curricular activities. Our partnership with Booster Clubs is an important part of our efforts for the students to achieve excellence in both extracurricular and co-curricular activities. The following guidelines will assist you in complying with District policies and guidelines, University Interscholastic League (UIL) guidelines, and state and federal regulatory guidelines governing Booster Clubs. Through parent support, our student groups are afforded many opportunities to develop and showcase their talents in the context of quality programs. The Board of Trustees and I thank you for your ongoing support of students in Cypress-Fairbanks Independent School District. Sincerely, David Anthony, Ed.D. Superintendent 10300 Jones Road, Houston, Texas 77065 281-897-4000 P. O. Box 692003 Houston, Texas 77269-2003 Contact List In addition to your Sponsor, other helpful contacts are provided below from school administration to other District personnel, State agencies, and Federal agencies: High Schools / Principals Cy-Fair High School 22602 Hempstead Highway Cypress, TX 77429 Cypress Creek High School 9815 Grant Road Houston, TX 77070 Cypress Falls High School 9811 Huffmeister Road Houston, TX 77095 Cypress Lakes High School 5750 Greenhouse Road Katy, TX 77449 Cypress Ranch High School 10700 Fry Road Cypress, TX 77433 Cypress Ridge High School 7900 N. Eldridge Parkway Houston, TX 77041 Cypress Springs High School 7909 Fry Road Houston, TX 77433 Cypress Woods High School 16825 Cypress Springs Rd. Cypress, TX 77429 Mike Smith, Principal Eileen Perrie, Secretary Phone: 281-897-4638 Fax: 281-517-6530 Jim Wells, Principal Mary Ann Guidry, Secretary Phone: 281-897-4215 Fax: 281-897-4193 Becky Denton, Principal Joy Ivey, Secretary Phone: 281-856-1017 Fax: 281-856-1445 Sarah Harty, Principal Donna Jo Strickler, Secretary Phone: 281-856-3800 Fax: 281-856-3808 Darlene Medford, Principal Tanya Pridgeon, Secretary Phone: 281-373-2300 Fax: 281-213-1976 Claudio Garcia, Principal Irene Herring, Secretary Phone: 281-807-8000 Fax: 281-807-8005 Barbara Weiman, Principal Toni Hernandez, Secretary Phone: 281-345-3007 Fax: 281-345-3010 Sue McGown, Principal Laura Stivers, Secretary Phone: 281-213-1810 Fax: 281-213-1827 ii 09/07/2010 Principal Delia Baker. Choir.net
[email protected]@cfisd. and Orchestra Larry Matysiak Director of Secondary Music Drama / Theater Arts Antwanette Hill Director of Instruction Facilities Use Kathy Newman Facilities Use. TX 77040 Langham Creek High School 17610 FM 529 Houston.net 281-897-4117 larry.net 281-463-5325 charles. and Records Manager Financial Reports and Fund-Raisers Marty Edwards Director of General Administration terry.net iii 09/07/2010
[email protected] List Jersey Village High School 7600 Solomon Street
[email protected]@cfisd. Secretary Phone: 713-896-3442 Fax: 713-896-3438 Cheryl
[email protected]@cfisd. Flyers. Secretary Phone: 281-463-5435 Fax: 713-463-3509 Other Important Phone Numbers District General and Financial Issues Carol Oman Director of Internal Audit Pat Stefan Internal Auditor III Athletics and Cheerleaders Larry Peil Director of Athletics Band.net 281-517-6367 281-807-8140 281-517-2178 (fax) antwanette. Drill Team.net 281-897-4111 281-517-6537 kathryn. TX 77095 Ralph Funk.net 281-897-4081 carol. Principal Charlotte Krysinski.
[email protected]@cfisd.state. Sales Tax Exemption.edu 512-471-5883 Sales Tax (Sales Tax Permit.scott@cfisd. Sales Tax Reports.net 281-894-3950 State Competitions and Rules University Interscholastic League (UIL) Incorporations Texas Secretary of State Raffles Texas Attorney General www.net 281-517-2123 pamela.net 281-897-4036 ami.html (includes Searchable Taxpayer Information Databases) 1-800-252-5555 iv 09/07/2010 .us 713-223-5886
[email protected]. and Franchise Tax) Texas Comptroller’s Office General Information www.us 512-463-5555 www. Planning & Community Relations Volunteers Pam Scott Director of Partners in Education david.net 281-856-1543 pamela.state.Contact List Other Important Phone Numbers Future Farmers of America (FFA) David Reynolds Coordinator of Industrial Tech & Agricultural Science National Forensics League (NFL) Ami Ruby Curriculum Coordinator for 9th – 12th Speech and Debate Other General Issues Pam Wells Associate Superintendent for Facilities.utexas.oag.sos.us/taxinfo/sales/index. irs.Contact List Other Important Phone Numbers Sales Tax (Continued) Texas Comptroller’s Office Exempt Organizations Department www.state. 34142 Federal IRS Exempt Status as a 501(c)(3) Organization and Tax Returns Internal Revenue Service (IRS) General Information www.tx.gov (Select Forms & Publications) 1-800-829-1040 1-877-829-5500 (toll-free) 1-800-829-3676 v 09/07/2010 .irs.gov (Select Charities & Non-Profits) Tax Forms & Publications www.us/taxinfo/exempt/index.html 1-800-531-5441 ext.cpa.gov Tax-exempt Organizations www.irs. .................................... 2.................................................................... University Interscholastic League (UIL) Booster Club Guidelines ............................................................................... 4.. Carry-Over Balances.........................................1 Booster Club Checklist........ 3....................................................1 5.... District Board Policy GE (Local)....... Federal Regulatory Information .......................................................................................................................3 7..........3 Incorporation of a Non-Profit Organization............................................................4 7........................................ Day-to-Day Responsibilities Day-to-Day Responsibilities Overview ............................... ii Introduction .......................... 4......................................... Booster Club Information Sheet ............................... Financial Report Information & Formats......................1 7...............................................................................................................................1 Life Cycle of a Public Charity .....2 6.Table of Contents Page # Letter from the Superintendent .............................4 7..............1 Booster Club Registration & Approval Form ..........................6 7.............................................................................7 6........ Review Report Information & Formats ............................................................................... 1.. 7.. Bank Accounts .....................17 09/07/2010 .... Accounting Procedures .............................................................................................................................................7 5...............................................12 5......................................................................3 7................................................................................................ Financial Aid Guidelines .............. 4................................................................................................................... Contributions / Donations .......................................................................................................... 3..... i Contact List ...............................................................................................6 Following the Rules Authoritative Guidelines Overview....................................................................2 5...............................................5 6...........................................................9 5..................................................... Taking Care of Business Taking Care of Business Overview .................................................................... Facilities Use..................................................1 Do I Really Want a Booster Club? Questions to Answer Before You Commit..................... State Regulatory Information ..................................................................................................3 Creating Your Own Identity Creating Your Own Identity Overview................................1 6.................................................. Members ...................................................................................1 A1.........................14 7.7 7........................................2 A1........................................................... Fund-Raisers for Individuals or Families............................14 7................... Raffles ............................................................................................ Insurance ............................ Financial Aid Guidelines.........16 A1.......................Table of Contents Page # Day-to-Day Responsibilities (continued) Flyers ....................................................................................................................20 7...............17 7................. B2......7 A1........................................... Notice to the Texas Comptroller of Change in Officers/Board Members.............................................. Notice to the Bank of Changes in Authorized Account Signers .........................................3 A1.................... Sales Tax............................................. Volunteers Hours ...................................10 7.............................19 7.................... Student Fines and Fees List ..........13 7..................................................................................................................................................20 A1............................................................................................................... Record Retention ..............12 A1............................................................ Paying and Reporting of Workers (District Employees or Others) ...............................1 Forms Authorization for Signer on PTO & Booster Club Bank Accounts.12 7....................... Membership Dues ..............................................11 7..............................................20 7..... Treasurer’s Report ..................................................................................................... Notice to the IRS of Change in Officers/Board Members............................................................................................................................................................... Appendix Booster Clubs Examples Articles of Association ....................20 Page 2 09/07/2010 ................................ Mailing Address.....................................11 7..................................................................................21 7.............................................................................................. District Examples Contribution Acknowledgment Form... Bylaws of a Corporation........................................................................................................................ Bylaws of an Association ............................................7 7........................................................................... Articles of Incorporation ....................................................................11 7.........1 Fund-Raising Activity Report ............................... Project Prom Incentive.. Fund-Raisers .......................................................................................................................................... Money Handling Procedures........10 7............ B1..................................19 A1....................................................... B2........................ ...........8 Examples Approval of Articles of Incorporation.... C1................................ C2............2 Internal Revenue Service (IRS) Helpful Information Application for Recognition of Exemption – Section 501(c)(3) ..... Acknowledgement of Your Application ..2 Taxpayer Tips: Common Errors Made by Exempt Organizations – Tips When Filing Form 990-EZ... Form 1023 – Application for Recognition of Exemption ...............1 Taxpayer Tips: Common Errors Made by Exempt Organizations – Tips When Filing Form 990 ....3 D2......................... D1........................ C1.....................................................................................................1 Texas Tax Exemptions for Nonprofit Organizations ............6 Sales & Use Tax Bulletin – School Fundraisers and Texas Sales Tax ................................... C1..................30 Page 3 09/07/2010 .............................................Table of Contents Page # State of Texas Helpful Information Texas Sales Tax – Frequently Asked Questions ................................ D1... Determination Letter ..1 Certificate of Incorporation............. D1............................3 Forms Texas Sales and Use Tax Exemption Certification ................................ C3................2 D2..............................................1 D2............................. C3......... D1................................................................ C2.......................... D2.............................................................................................................2 Texas Sales and Use Tax Permit ..........................3 Top Ten Reasons for Delays in Processing Exempt Organization Applications .........................................................................................................................4 Examples Employer Identification Number (EIN) Assignment Notice ... C2......................................1 Texas Sales and Use Tax Resale Certificate .... the Booster Club does not have the authority to decide the activities or trips in which the student group will participate. University Interscholastic League (UIL). it is a separate entity from the District. therefore. policies.A designated Sponsor of a student group serves as the liaison between the Booster Club and the District. effort. the Sponsor should work very closely with the Booster Club and provide guidance to the organization. Booster Clubs support a particular student group or program through a Sponsor. Therefore. In addition. the pertinent Principal or other appropriate Administrator (if the Booster Club is not located at a school) must approve various activities of both the student group and the related Booster Club. state. UIL guidelines. The Sponsor is a District employee who serves as the liaison between the Booster Club and the District.The Principal or Administrator is responsible for approving the activities of the student group and some activities of the related Booster Club. Sponsor / Liaison . Even though a Booster Club works very closely with the District. such as District policies and guidelines. The Booster Club works through the Sponsor to provide assistance for the planned activities of the student group. the Sponsor is responsible for the final decision with the Principal’s or Administrator’s approval. The Guidelines includes some items that must be followed by all Booster Clubs. a Sponsor. the District greatly appreciates the time. Support may be as simple as providing refreshments for a particular event or support may be as complex as raising money for an out-of-state competition. regulations. suggestions. Internal Audit is not an authority on specific accounting situations or tax-related issues concerning individual Booster Clubs. However.A Booster Club is responsible for supporting a student group.Introduction The Booster Club Guidelines were prepared to assist Booster Clubs in meeting District. Therefore. Booster Clubs are parent organizations established to promote school programs or complement student groups or activities. Important: The Internal Audit Department of Cypress-Fairbanks Independent School District prepared these Guidelines to assist Booster Clubs in following various policies and regulations. Other items include suggestions for improving your organization related to day-to-day activities. and financial support that the Booster Clubs provide to our students. the Sponsor shall approve all student / school-related activities of the Booster Club in accordance with Board Policy GE (Local). The Sponsor is responsible for determining the various activities and trips in which the student group will participate with the approval of the Principal or Administrator. and examples for Booster Clubs to follow. In addition. however. activity. and state and federal regulations. Principal or Administrator . laws. it includes checklists.1 08/01/2008 . 1. The Sponsor should not be considered an officer or member of the Booster Club. A Booster Club’s purpose may be to support a student group or program at a particular school or various student groups or programs at various schools. Students enrich their education and expand their horizons when they participate in school activities and programs. The main responsibilities of a Booster Club. under the supervision of the Principal or Administrator. and a Principal or Administrator are indicated below: Booster Club . The parents and the Booster Club may provide suggestions about particular activities. and federal requirements. or program. however. Booster Clubs should obtain competent independent counsel on accounting and tax matters related to their specific circumstances. 08/01/2008 .Included in this section: A comprehensive checklist that all Booster Clubs should complete. 25 7.11 5.3 6. 2. Provide the School Principal or Administrator (if the Booster Club is not located at a school) with the Booster Club’s constitution.2 – 6.Mailing Address .Name .Booster Club Checklist The following checklist serves as a guide to help ensure that your Booster Club has complied with the District’s Board Policies and guidelines and federal and state regulations governing Booster Clubs. State and Zip Code Insurance 4. and operating procedures when they are originated.1 09/07/2010 . event liability.Home Phone Number . Provide the District’s Director of Internal Audit and the School Principal or Administrator (if the Booster Club is not located at a school) with a list of the Booster Club officers at the beginning of each school year and as officers change. The Booster Club’s official mailing address is: Official Name PO Box / Street City. provide updated copies as changes are made.E-mail Address 2.Work Phone Number . 7. bylaws.4 3. and/or fidelity (bond) insurance coverage policies. The list should include: . The Booster Club should consider purchasing a general liability policy. information you document here will help future officers continue your compliance efforts.11 5. In addition. In addition. Page Reference General 1.15 5.Cell Phone Number .Office Held . 14 6.11 2.2 09/07/2010 .. and . taxfree” sales/auction days per calendar year. (See Checklist item #21.Name and phone number of the person(s) who will be handling the money for the fund-raiser.e. 5. indicate the “one-day. and place(s) of the activity. if not already provided on the Permission Request. tax-free” sales/auction that have been used or that are planned: Calendar Year Date / Fund-raiser Date / Fund-raiser Calendar Year Date / Fund-raiser Date / Fund-raiser 5. tax-free” sales days.5 7.8 7. The detailed fund-raising information should include: Purpose of the fund-raiser. For the fund-raisers planned for the current school year.Booster Club Checklist Page Reference Fund-Raisers 5. carnival) Date(s). Name and phone number of organization’s representative.3 5. If your Booster Club has received a tax-exemption from the Texas Comptroller’s Office. Name and phone number of person(s) in charge of the fund-raiser.5 7. 5.8 6. provide the Sponsor with detailed fund-raising information at least 30 days prior to the fund-raising event. time(s). In addition. Type of fund-raising activity (i. candy sale.) If you are entitled to the two “one-day. Name of the sponsoring organization. submit the Permission Request (first 2 pages) of the Fund-Raising Activity Report to the Sponsor and the Principal (or designee) or Administrator (if the Booster Club is not located at a school) for approval by September 30. your organization is entitled to two (2) “one-day. 5 5. a student’s ability to attend a trip cannot be based on raising a certain amount of money.1 2. discontinue this requirement. Do not use an individual’s social security number. and do not use the District’s EIN. For example.3 D2.19 – 5. The identification number used for the bank accounts is as follows: 5. 5. Determine the identification number used for the bank accounts.19 7. If your Club is currently requiring fund-raising.8 – 7. that person still receives an equal benefit from the revenues generated.20 7.9 Financial Matters General 9. Therefore.18 – 5. The Booster Club cannot use individual accounts to credit an individual for funds raised.4 – 5. The Booster Club’s Employee Identification Number (EIN) should be used.3 09/07/2010 . One member or student should not receive a larger benefit from fundraising than another. revenues should be recorded in a group account where all members or students have the same opportunity to benefit equally from the revenues. In addition.2 5. The Booster Club cannot require members or students to fund-raise or raise a certain amount. not individuals. The bank accounts used by the Booster Club include: Bank Name Account Number 10. discontinue this practice. If your Club is using individual accounts currently.Booster Club Checklist Page Reference 8. if a member or student chooses not to participate in the fund-raiser. Fund-raising is an opportunity to generate revenue for the Booster Club as a group. Update the authorized signers on your bank accounts as officers change. Determine whether your organization is in good standing with the IRS by calling the Exempt Organization Section of the IRS. 6. The current authorized signers include the following Booster Club officers: Name of Person Officer Position Held / District Employee? (Yes/No) 5.4 09/07/2010 .11 7.11 7.3 7.3 – 7. The written approval must be kept on file with the District’s internal auditor. except for the position of Treasurer.1 Example: June Bugg President | No | | | | IMPORTANT District employees may serve parent organizations as a general member or as a member of its executive board. District employees shall not serve in a capacity over the organization’s financial affairs.4 B2. This approval must be requested and received each school year. A District substitute or temporary worker may be a Treasurer or authorized signer on the bank account of a parent organization with written approval from the principal or supervisor where the organization is located and the associate superintendent for business services. 2. 12. Determine whether your organization is in good standing with the Texas Comptroller’s Office by calling their office.19 13. See Authorization for Signer on PTO & Booster Club Bank Accounts in the Appendix. including an authorized signer on the bank account.19 6.Booster Club Checklist Page Reference 11. District employees hired by the Booster Club must be paid directly by the Booster Club and not through the District. of each year. The Texas Comptroller’s Office determines how often the report needs to be filed and is subject to change. a report for the 2009-10 school year should be submitted by September 15.1 6.9 – 6.4 19.1 6. If 1099 forms are issued. 5. of each year along with the Financial Report. Issue 1099 forms to applicable individuals or businesses by January 31.4 6. The Booster Club files its Texas Sales Tax Report: Monthly Quarterly Seasonal (Semi-Annually) (Not available for new Booster Clubs) Annually 5.Booster Club Checklist Page Reference 14. including the Financial Report to the Sponsor.14 2. Note: Request a W-9 form from the individual or business before issuing them a check.3 7. 5. Provide a copy of the financial report and review report at a meeting that includes the Booster Club’s general membership by October 31 of each year. 5. and to the Director of General Administration by September 15. the School Principal or Administrator (if the Booster Club is not located at a school).11 7. 6. 16. send information to the IRS by February 28. For example.14 15. Provide a copy of the Booster Club Review Report that indicates the results of the review of the organization’s financial information.5 – 6.5 09/07/2010 .13 – 7.4 6. Provide a copy of the written Booster Club Financial Report for the applicable school year to the Sponsor.8 17. File the Booster Club’s Texas Sales Tax Reports as required. Present a written Treasurer’s Report at every meeting that includes the general membership. the School Principal or Administrator (if the Booster Club is not located at a school). 2010. of each year.16 18. and to the Director of General Administration by September 15.20 5. of each year. an exemption from Texas franchise tax was obtained from the Texas Comptroller’s Office: Yes No 2. The Booster Club has received a tax-exemption from the Texas Comptroller’s Office: Yes No 5.13 C2.6 09/07/2010 . each year. 990-EZ. 21.14 – 5.3 Reminder: Only those organizations with a tax-exemption from the Texas Comptroller’s Office are entitled to the two (2) “one-day. The return is due by the 15th day of the 5th month after the organization’s accounting period ends (due 4 ½ months after your official year-end).15 If the Booster Club is incorporated. Yes No 5. Determine whether your organization has obtained a Texas Sales Tax Permit. File the IRS Form 990.2 D1. If the Booster Club is incorporated. tax-free” sales/auction days.13 – 5.Booster Club Checklist Page Reference 20. Return of Organization Exempt from Income Tax. Determine whether your organization has obtained a tax-exemption from the Texas Comptroller’s Office. determine whether your organization has obtained an exemption from Texas franchise tax from the Texas Comptroller’s Office. The Booster Club’s sales tax permit number is________________________ 22.24 D1.14 5. Official Year-end: ____/____/____ Due Date for Return: ___/___/____ 5.23 – 5.3 State Regulatory Information The following items need to be done only once since the origination of the Booster Club. or 990-N. 23. As your Booster Club President or Treasurer changes. 26. give the applicable Booster Club Guidelines handbook to the new officer(s).11 D2. Application for Recognition of Exemption.36 5.2 6. User Fee for Tax-Exempt Organization Determination Letter Request.19 D2.30 – D2.29 5. Determine whether the Booster Club has received tax-exempt status as a public 501(c)(3) organization from the IRS. The Booster Club received its tax-exempt status as a public 501(c)(3) organization from the IRS: Yes No D2.1 If you have not applied for the tax-exempt status. you should receive an Acknowledgment of Your Request. If the IRS has approved the Clubs’ tax-exempt status. complete the IRS Form 1023. please refer to the applicable sections of this handbook.2 5.Booster Club Checklist Page Reference Federal Regulatory Information The following items need to be done only once since the origination of the Booster Club.18 – 5. 24.3 – D2. Submit these forms and the applicable fee to the IRS. If you have any questions concerning the above items.7 09/07/2010 . If you have applied for the tax-exempt status but you have not received your Determination Letter. Call the IRS to determine the status of your application. and the Form 8718. The EIN for the Booster Club is:___________________________________ 25. 2. a Determination Letter would have been received from the IRS. Obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). Included in this section: Questions to Answer Before You Commit Booster Club Registration & Approval Form 08/01/2008 . and federal regulations? (This includes submitting required information to the Texas Comptroller’s Office and the IRS. Have I spoken with other similar Booster Clubs to determine what benefits/problems they have experienced? 8. in writing. Have I read or will I read the rest of this handbook to discover my responsibilities once a Booster Club is formed? 7. Therefore. Parents may still support a student group as parents through fund-raisers and other activities in which the students are involved if the student group has a Student (agency) Activity Fund set up through the District. In addition. The appropriate School Principal or Administrator must approve. and paperwork to be in compliance with all District.1 09/07/2010 . (See Booster Club Registration & Approval Form in this section. however. All money generated would be considered the student group’s money and would benefit only that group of students.Questions to Answer Before You Commit Booster Clubs provide an important support function to student groups. Am I willing to perform the necessary research. Are there enough parents with time to commit to a Booster Club? 5. Interested parents should discuss these issues with each other as well as the Sponsor of the student group and the School Principal or Administrator (if the Booster Club is not located at a school).) 6. 1. Why do I want a Booster Club? 2. the District would be responsible for all of the accounting and legal responsibilities of the Student Activity Fund. Please remember that parents do not have to form a Booster Club to support a student group. The following are some questions to consider when deciding whether or not to form a Booster Club: 1. they also require a strong commitment from members to work properly. What can a Booster Club accomplish that cannot be achieved through the use of a Student Activity Fund? 3. the formation of a Booster Club before the Club takes any further action to create a unique identity. Have I spoken with the Sponsor to obtain support for the formation of a Booster Club? Once you have decided to form a Booster Club. UIL.) 3. You must then obtain the written approval of the School Principal or Administrator before proceeding with any other steps to create your identity as a Booster Club. deciding whether or not to form a Booster Club is a difficult decision that requires careful consideration of the pros and cons of formation. state. Do I have time to commit to a Booster Club? 4. training. some of these documents could be lost or misplaced. a Booster Club could lose their tax-exempt status. and your bank as you would if you used someone’s home address. Second. 2. you will save time since you will not have to update your address each year to the District. The District does not recommend using a home address since officers change frequently. the formation of the Booster Club must be approved in writing by the Principal: Athletics Band Cheerleader Choir Drama Drill Team FFA – Future Farmers of America NFL – National Forensics League (Debate) Orchestra Project Prom ROTC or JROTC (Junior ROTC) The formation of any other Booster Clubs must be approved by the Associate Superintendent for Facilities. and if the address changes frequently. Please understand the importance of maintaining a consistent mailing address for the Booster Club. Planning & Community Services and the Associate Superintendent for Human Resources and Student Services. 4. If the related school’s address is used as the Booster Club’s official address. Begin the process of creating your own identity with the State of Texas and the IRS.2 09/07/2010 . If these forms are not completed and returned to the IRS within a specific time period. The IRS mails forms and other correspondence to Booster Clubs periodically.Questions to Answer Before You Commit If you want to form one of the following types of Booster Clubs. therefore.e.) The IRS and the Texas Comptroller’s Office recommend that each Booster Club obtain a post office box (PO Box) or private mailing box (PMB) to use as the official mailing address of the Booster Club. it is better to get this step done first.. First. 3. the IRS. Send a copy of the written approval to Internal Audit to notify us of the new Booster Club. the Booster Club should be aware that it may not receive mail in a timely manner when the school is closed (i. Booster Clubs receive several important documents from these agencies throughout the year. summer vacation and some holidays). The address and box keys can be given easily to the new officers at the beginning of each new year. the Texas Secretary of State. the Texas Comptroller’s Office. 3. (You will need to list an official mailing address on several state and federal forms when creating your identity as a Booster Club. Establish the Booster Club’s mailing address. thereby also losing their tax-exemption with the State of Texas and possibly face fines and penalties. phone numbers. I understand that noncompliance with any District policy or criteria may result in the disbanding of the Booster Club by the Principal or the Administrator. I have read the Booster Club Guidelines thoroughly and agree to abide by the rules and guidelines it contains. Submitted by: / (President/Representative #1) / (Vice-President/Representative #2) / / Date / / Date / / (Treasurer/Representative #3) Date (Sponsor) Date For District Use Only Received by: Date Received: / / 3. I have included a current list of officers or representatives with names.Cypress-Fairbanks Independent School District Booster Club Registration & Approval Form To: (Principal’s or Administrator’s Name) Location: (School’s or Department’s Name) Name of Organization: Purpose of Organization: Student Group to be Supported: Faculty Sponsor for Club: Current Number of Parent Supporters: ______________ I agree with the following statements: I have spoken with the faculty member who will serve as the Sponsor of the Booster Club and have received their permission to submit this registration form. titles. and e-mail addresses with this registration form. mailing addresses.3 08/01/2008 . Please make copies of BOTH SIDES of this form for: The Sponsor The Principal or Administrator Internal Audit Department 3.4 08/01/2008 . (Principal’s or Administrator’s Name) _________________________________at _________________________________________ (Position) (School’s or Department’s Name) authorize ____________________________________________________ to conduct student and (Booster Club Name) organizational related activities for the benefit of ________________________________________ (Student Group) This registration approval is effective for the school year beginning ____________________ and (School Year) will continue until such time as the Booster Club no longer exists. (Principal’s or Administrator’s Name) ____________________________________ at _____________________________________ (Position) (School’s or Department’s Name) do not authorize ________________________________________ to become a Booster Club. (Booster Club Name) / Principal or Administrator’s Signature Date / The original form should be sent to a representative of the Booster Club shown on the front of this form. ____________________________________.Cypress-Fairbanks Independent School District Booster Club Registration & Approval Form APPROVAL OF BOOSTER CLUB: I. / Principal’s or Administrator’s Signature Date / DISAPPROVAL OF BOOSTER CLUB: I. _______________________________________. Included in this section: Creating Your Own Identity Overview Life Cycle of a Public Charity Incorporation of a Non-Profit Organization 04/02/01 . A membership drive should occur to let parents know about the booster club and when the first membership meeting will be held. The date the final document is signed by at least two officers or board members is considered the beginning date of the organization. use. At the first meeting. An association will prepare and sign an “Articles of Association” as an organizing document. have the general membership approve establishing the booster club and the booster club bylaws. Some blank forms and examples of completed forms and other information are included in the Appendix to assist you in completing the steps. skip to Step 4. (See the Incorporation of a Non-Profit Organization information. Draft the booster club’s bylaws as soon as possible. Helps shield the individuals governing and operating the nonprofit organization from liabilities incurred by the organization. file for incorporation with the Texas Secretary of State before proceeding with Step 4. A corporation will prepare and sign Form 202 (Certificate of Formation Nonprofit Corporation) to be filed with the Texas Secretary of State. this document will not be filed with the Texas Secretary of State. As a supplement to these pages. If an association. and franchise tax exemptions. 4. You should receive a copy of your certificate of formation from the Texas Secretary of State stamped with the date considered the beginning date the organization. the following short summary lists the necessary steps in the order in which they should be completed. After receiving an EIN and electing officers. Then elect officers in accordance with the bylaws. 7. Benefits of Incorporation: Formalize organization and provide standardized operating procedures through Articles of Incorporation and Bylaws. Decide if your Booster Club will be an association or a corporation and prepare the necessary organizing document. Both the IRS and State of Texas require that each Booster Club have an organizing document to establish the official formation of the organization. If a corporation. go to Step 3. however.Creating Your Own Identity Overview This section of the Guidelines provides detailed information related to applying for permits and exemptions you will need. the booster club can open a bank account.) 4.1 09/07/2010 . unless the individuals are negligent in their duties. 3. 5. For a corporation. In addition. 6. see the Life Cycle of a Public Charity immediately following this section. 2. You will submit this document along with the appropriate forms when applying for federal tax exemption as a public 501(c)(3) organization and when applying for state sales. Apply for an Employer Identification Number (EIN) with the IRS. 1. Put all of the documents related to these steps in a “Permanent File” in a safe place to be forwarded to the new officers each year. Make copies for several officers. 17.Creating Your Own Identity Overview 8. Apply for federal tax-exemption as a public 501(c)(3) organization with the IRS. excise. Pat yourself on the back for a job well done!! 4. 14. Apply for an exemption from Texas sales. If you are incorporated. You may also scan these documents and save to a CD. Send a copy of the Determination Letter to the Internal Audit Department. Apply for a Sales Tax Permit with the Texas State Comptroller’s Office. 16. 15. Receive a Determination Letter (approximately 4-6 months later) stating you are a public 501(c)(3) tax-exempt organization. 10. 12. Receive a Letter of Acknowledgement from the IRS indicating receipt of your application and payment.2 09/07/2010 . 9. Read “Top Ten Reasons for Delays in Processing Exempt Organization Applications” in the Appendix before you submit your application!! 11. and use tax with the Texas Comptroller’s Office. file for franchise tax-exemption with the Texas Comptroller’s Office. 13. Correspond with the IRS if your bylaws need to be modified or if the IRS needs additional information to complete your approval process. During its existence. to filing the required annual information returns. Therefore.gov/charities Organizations that meet the requirements of Internal Revenue Code section 501(c)(3) are exempt from federal income tax as charitable organizations.irs. The IRS provides information. The information documented below is subject to change by the IRS. guides. forms and publications on all of these subjects – they are available through this IRS Web site. explanations. In addition.Life Cycle of a Public Charity The following excerpts were downloaded from the IRS website. please go to www.3 09/07/2010 . contributions made to charitable organizations by individuals and corporations are deductible under Code section 170. for the most up-to-date version of this information.” The IRS web site includes examples of various documents found in the following sections. a public charity has numerous interactions with the IRS – from filing an application for recognition of tax-exempt status. to making changes in its mission and purpose. The illustration below provides an easy-to-use way of linking to the documents most charities will need as they proceed though the phases of their “life cycle. Starting Out Organizing Documents o o Required Provisions Sample Organizing Documents Governance and related topics Bylaws o State law requirements Employer Identification Number o Application Form o Online EIN Application Charitable Solicitation o Initial State Registration o Periodic State Reporting o State Charity Offices Help from the IRS Applying to IRS Requirements for Exemption Application Forms o Exemption Application Group exemption o User Fee o Power of Attorney o Disclosure of Applications 4. Life Cycle of a Non-Profit Charity IRS Processing o While You Wait o Rulings and Determination Letters o Advance Rulings . Tax-Exempt Status for Your Organization Required Filings Annual Exempt Organization Return o Requirements for Filing e-File for Exempt Organizations o e-Postcard for Small Exempt Organizations Unrelated Business Income Tax o Requirements for Filing Form 990-T Form 990-T instructions Form 990-W Estimated Tax o Exceptions and Exclusions o Publication 598.Publicly Supported Organizations Help from the IRS o Application Process Step by Step o Customer Account Services o Publication 4220. Applying for 501(c)(3) Tax-Exempt Status o Publication 557. Tax-Exempt Status for Your Organization Ongoing Compliance Jeopardizing Exemption o Inurement/Private Benefit o Intermediate Sanctions o Lobbying/Political Activity o Not Filing Annual Return or Notice Employment Taxes o Requirement to Pay o Exceptions and Exclusions o Worker Classification o Forms and Publications Retirement Plan Compliance 4. Compliance Guide for 501(c)(3) Public Charities o Publication 557. Tax on Unrelated Business Income for Exempt Organizations Help from the IRS o Customer Account Services o Publication 4221-PC.4 09/07/2010 . Charitable Contributions Substantiation and Disclosure Requirements Written acknowledgments Quid pro quo contributions Charity auctions o Noncash Contributions Donor ( Form 8283) Donee ( Form 8282) Publication 561.Life Cycle of a Non-Profit Charity Substantiation and Disclosure o Charitable Contributions Publication 1771. Tax-Exempt Status for Your Organization Significant Events Reporting Changes to IRS o Termination of Exempt Organization Private Letter Rulings and Determination Letters Audits of Exempt Organizations o Potential Examination Consequences o Examination Procedures o Power of Attorney Termination of an Exempt Organization Help from the IRS 4. Determining the Value of Donated Property Public Disclosure Requirements Help from the IRS o Customer Account Services o Publication 4221-PC. Compliance Guide for 501(c)(3) Public Charities o Publication 557.5 09/07/2010 . tx. Texas 78774-0100 (512) 463-4600 or (800) 252-1381 TDD: (800) 248-4099 or (512) 463-4621 4.state. The information documented below is subject to change by the Texas Secretary of State. Questions on exemption procedures should be addressed to: Comptroller of Public Accounts Tax Assistance Exempt Organizations Section Austin. if a duplicate copy of the document was provided for such purpose.001(5)].Incorporation of a Non-Profit Organization The following excerpts were downloaded from the Texas Secretary of State’s website. Section 22. Two copies of the Certificate of Formation should be submitted to the secretary of state for filing. directors. issue a certificate of formation and return the certificate and a stamped copy of the articles to the remitter.sos.6 09/07/2010 . The publication can be obtained from either the IRS or the Government Printing Office. please go to http://www. The filing fee for a non-profit corporation is $25. IRS Publication 557. or officers [BOC. If the articles conform to law. Therefore.00. TAX EXEMPTION Not all non-profit corporations are entitled to exemption from state or federal taxes. You should consult the Internal Revenue Service (IRS) prior to filing the articles to determine what provisions must be included in the articles for the corporation to be exempt from federal taxes. does not make such determinations. "Non-Profit corporation" means a corporation no part of the income of which is distributable to members. however. The secretary of state. titled "How to Apply for Recognition of Exemption for an Organization. A non-profit corporation may be exempt from the payment of state franchise taxes if its purposes fall within one of the exemptions listed in the Texas Tax Code. Subchapter B. The incorporator will need to order a “certified copy” of the certificate of formation to submit with the federal tax-exemption paperwork. the secretary of state will stamp the documents "filed"." describes the rules and procedures for non-profit organizations requesting exemption.us A non-profit corporation is created by filing certificate of formation with the secretary of state in accordance with the Texas Business Organizations Code (“BOC”). Chapter 171. for the most up-todate version of this information. Form 202 (Certificate of Formation for a Nonprofit Corporation) is available on the secretary of state website at http://www. Selection or completion of a form found on this web site is the responsibility of the user and the user's attorney. the designation of less than three directors. COMMON ERRORS CAUSING REJECTION OF A PROPOSED FILING Common errors include: 1. 2.shtml..Incorporation of a Non-Profit Organization ARTICLES OF INCORPORATION FOR A NON-PROFIT CORPORATION The secretary of state has promulgated Form 202 (Certificate of Formation for a Nonprofit Corporation) to meet statutory requirements and facilitate filings with the office. The articles should be signed by ALL the incorporators. consult your attorney. the person has committed an offense. The incorporator will need to order a “certified copy” of the certificate of formation to submit with the federal tax-exemption paperwork. 4. 2. The offense is a Class A misdemeanor. “Forming a Nonprofit Tax-Exempt Corporation in Texas” published by the 2010 Texas C-Bar is available on the secretary of state website.tx.us/corp/forms_boc. Use of this form is permissive. failure to state that the corporation is a non-profit corporation. EXECUTION REQUIREMENTS AND FEE 1.shtml and can also be completed on-line through SOSDirect. If you have specific legal questions.sos. 4. failure to properly execute the documents.7 09/07/2010 . This publication explains the basic steps in forming a nonprofit corporation and obtaining tax-exempt status from the state of Texas and the federal government. If a person signs a document which the person knows is false in any material respect with the intent that the document be delivered to the secretary of state to be filed on behalf of a corporation.tx.state. Two copies of Form 202 should be submitted to the secretary of state. or 3. There is a $25 filing fee for all non-profit corporations 5. 3. The certified copy may be ordered simultaneously with the filing of the certificate of formation for approximately $1 per page. The forms and information provided by the secretary of state are not intended to provide legal advice or to substitute for the advice of an attorney.us/corp/nonprofit_org.sos. http://www.state. or delete a statement that by its alteration. sealed. or alter provisions of the articles of incorporation using Form 403 (Certificate of Correction). A corporation may amend its articles of incorporation to correct only those statements that contains an inaccurate or erroneous statement. There is a $15 filing fee. 2. addition or deletion would have caused the secretary of state to determine that the filing instrument did not conform to the requirements of applicable law at the time of filing. If you have specific legal questions. delete. consult your attorney. the filing instrument is considered to have been corrected on the date the certificate of correction is filed.sos.8 09/07/2010 .us/corp/forms_boc.tx. Form 403 (Certificate of Correction) is available on the secretary of state website at http://www. Selection or completion of a form found on this web site is the responsibility of the user and the user's attorney. The certificate of correction must be signed by a person authorized to sign the certificate of formation. After the secretary of state files the certificate of correction. EXECUTION REQUIREMENTS AND FEE 1. add.Incorporation of a Non-Profit Organization ARTICLES OF AMENDMENT FOR A NON-PROFIT CORPORATION Articles of amendment may be filed to add. The offense is a Class A misdemeanor. was defectively or erroneously signed. A certificate of correction may not alter. acknowledged or verified. the person has committed an offense. The forms and information provided by the secretary of state are not intended to provide legal advice or to substitute for the advice of an attorney.shtml and can also be completed on-line through SOSDirect. If a person signs a document which the person knows is false in any material respect with the intent that the document be delivered to the secretary of state to be filed on behalf of a corporation. the governing law authorizes or requires to be included in the original filing instrument.state. 4. the filing instrument is considered to have been corrected on the date of the original filing except where a person is adversely affected by the correction. 3. Included in this section: Authoritative Guidelines Overview District Board Policy GE (Local) University Interscholastic League (UIL) Booster Club Guidelines State Regulatory Information Federal Regulatory Information 08/01/2008 . Therefore. however.Authoritative Guidelines Overview Booster Clubs are governed by various entities. 5. In addition. The cost of these services would be the Booster Club’s responsibility. IMPORTANT Booster Club officers are solely responsible for ensuring that their Booster Club is in compliance with District policies and guidelines. The state and federal regulatory information included in this section 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. such as a Certified Public Accountant (CPA) or an attorney. The School District has Board Policies and guidelines that must be followed by Booster Clubs. to address accounting and tax matters related to their specific circumstances. as well as guidelines that the School Principal or Administrator (if the Booster Club is not located at a school) may implement. and regulations. you should contact UIL directly. guidelines. and the federal government. is not responsible for a Booster Club not complying with the various policies. through the IRS. including any District employee. Booster Clubs should obtain competent independent counsel. Therefore. and state and federal regulations. Relations with Parents or Parents’ Organizations UIL Booster Club Guidelines State Regulatory Information Federal Regulatory Information The UIL Booster Club Guidelines do not necessarily include all rules that may apply to your organization. Internal Audit is not an authority on specific accounting situations or tax-related issues concerning individual Booster Clubs. UIL guidelines. the State of Texas. the District. Some state regulations relate to state sales tax while other regulations involve becoming incorporated or involve the holding of a raffle.1 08/01/2008 . The following information is included in this section: District Board Policy GE (Local). Also. For specific questions. the Booster Clubs must follow the guidelines of the University Interscholastic League (UIL). the IRS and the Texas State Comptroller’s Office may be contacted for questions related to your organization’s specific situation. SUPERINTENDENT’S DESIGNEE FORMATION All parent or community organizations must obtain a unique tax identification number . The Superintendent’s designee for overseeing the activities of parent and community organizations is the principal of the campus where the organization functions. and Have the authority to disallow the continued association of any school program with a parent or community organization that has been judged by the principal to be disruptive to the educational activities or goals of the program or group. Approve the formation of any such organization. 3.Employer Identification Number (EIN). The organization must apply for its tax-exempt status by filing a properly completed and executed Form 1023 with the IRS within 27 months from the end of the month in which it was organized as required by the IRS. As the responsible District employee. booster clubs.2 09/09/2008 . 4. 5. Such organizations may not use the District’s tax identification number. Receive a copy of the organizing documents and bylaws of such organizations. 2. Submit the organization’s EIN and a copy of the IRS’s Determination Letter to the District’s internal auditor. If an organization loses its public 501(c)(3) tax-exempt status or if this tax-exempt status expires.District Board Policy GE (Local) PARENTS OR COMMUNITY ORGANIZATIONS Parent or community organizations may be formed to promote the school program or to complement a particular student group or activity. Examples of parent or community organizations include PTOs. All PTOs and booster clubs must: 1. the organization must take the necessary steps to regain the tax-exempt status as a public 501(c)(3) organization within one year from the date of notification from the IRS of the loss of exemption or within one year from the tax-exempt expiration date. Ensure that an organization’s sole function is to support the educational activities of the designated program area. A parent or community organization may not represent the District nor bind the District or any of its employees to a third party with whom the organization may conduct business. the principal shall: 1. Obtain federal tax-exempt status as a public 501(c)(3) charitable organization by applying for and obtaining a Determination Letter from the Internal Revenue Service (IRS) that states the organization is tax-exempt from federal taxes. and volunteer groups. 2. The treasurer of the organization should prepare the financial report. 4. Additional activities should be submitted at least 30 days prior to the event. and revise such lists as officers change during the school year. The written approval must be kept on file with the District’s internal auditor. AUTHORIZED SIGNERS District employees may serve parent organizations as a general member or as a member of its executive board. File lists of officers of the respective organizations with the school principal and internal audit at the beginning of each school year. the treasurer must present a written treasurer’s report of the money received and expended since the last report. District employees shall not serve in a capacity over the organization’s financial affairs. File lists of organization activities for the coming year with the principal at a date established by the principal. 5. Work with such organizations to establish approved goals and student support activities for the respective organizations. The designated faculty sponsor acting as the liaison shall: 1. between any parent group formed in connection with a student group and the District. to aid in the development of the master calendar for the school. under the supervision of the principal. The financial report and related financial information must be reviewed by either an organizational review committee or by an independent reviewer 5. 3. FINANCES At each PTO and booster club meeting that includes its general membership. Appropriate written approval from the principal or supervisor where the organization is located and the associate superintendent for business services must be received before a District substitute or temporary worker may be a Treasurer or authorized signer on the bank account of a parent organization. Approve all student/school-related activities of such organizations. 2. This approval must be requested and received each school year.3 09/09/2008 . including an authorized signer on the bank account. Each PTO and booster club must prepare a written report of actual revenues and expenditures (financial report) for the school year. Assist in setting the budgets of such organizations and ensuring that expenditures of such organizations are in direct support of the goals of the designated programs. except for the position of Treasurer.Board Policy GE (Local) LIAISON The designated faculty sponsor of a student activity area shall serve as the liaison. not individuals. or the student activity area must receive an equal opportunity to benefit from the fund-raising activities.4 09/09/2008 . the sponsored student group. FUND-RAISING All community/school support organization fund-raising efforts shall be within federal. Therefore. CPA). If an organizational review committee is used. Each PTO and booster club must present the financial report and review report at a meeting that includes its general membership by October 31 of each year. Benefits given by a parent organization cannot be distributed based on participation in a fund-raiser or based on revenues individually generated in a fund-raiser. the sponsored student group. or the Sponsor. according to the IRS. tax-exempt organizations may not require people to participate in fund-raisers. Booster clubs must submit the annual financial report and review report to their sponsor. If the 15th falls on a weekend or holiday. the due date would be the next working day following the weekend or holiday.e. Comply with administrative regulations and Board policy when offering money/gifts to the District [see CDC]. a person cannot be denied the opportunity to receive a benefit because of lack of participation in a fund-raiser or because a specified amount of 5. regardless of whether or not a person participated in the fund-raising activities. individual accounts that credit individuals for their fund-raising efforts may not be used. PTOs must submit the annual financial report and review report to the Principal at their school by September 15 of each year. at least one reviewer should not be an officer. related to an officer. [See GKB] According to the IRS. revenues generated from fund-raising activities by tax-exempt organizations should benefit the organization. Therefore. and District guidelines and shall be for the purpose of supporting the school program or group activity for which the organization was formed. the due date would be the next working day following the weekend or holiday. If the 15th falls on a weekend or holiday. or student activity area as a whole. The finances of each PTO and booster club must be handled prudently and ethically including the payment of all taxes and other debts incurred by the organization and the issuance of receipts for all money received. All members of the organization. their principal.Board Policy GE (Local) (i. The financial report and review report will not be audited by the district. state. In addition. and the Director of General Administration by September 15 of each year. e. Name of sponsoring organization and representative. time(s). 5. 2. Therefore. All such activities require the approval of the designated sponsor(s) and the principal. carnival. and place(s) of the activity.. the student may then receive a benefit that others do not receive. a student who meets the financial hardship criteria may have the full amount of his/her trip paid by the organization. NOTICE OF FUNDRAISING ACTIVITIES A parent or community organization desiring to conduct a fund-raising activity for a school program shall submit the following information to the designated faculty sponsor on the appropriate District/campus form at least 30 days prior to the event: 1. the financial hardship criteria should be applied consistently to all recipients. they shall notify the principal of their plans. data lines.). In the event that students pay a designated amount to attend a trip. Name and phone number of the organization’s representative. An organization may establish written criteria for giving certain benefits to an individual with a financial hardship. Name and phone number of the person(s) in charge of the fundraiser. plumbing. Type of fund-raising activity (i. etc. The approval and cost of any facility 5. FINANCIAL HARDSHIP CRITERIA Purpose of the fund-raiser. In consultation with the Superintendent or designee. Name and phone number of the person(s) who shall be handling the money for the fund-raiser. 6. the criteria for financial hardship should not change to allow a particular individual to meet the criteria. and the criteria must be established prior to a financial hardship situation arising. If a student meets the written criteria. However.Board Policy GE (Local) revenue was not raised. including computer hardware and software. candy sale. 3. the principal shall determine the type or brand of equipment to buy to ensure compatibility with current District equipment and with current facility specifications such as electrical. 4. PURCHASES FOR THE SCHOOL Before parent groups or other groups working with the school purchase equipment for the schools. Date(s). etc. Such a benefit is an approved exception by the IRS to having all members receive an equal opportunity to benefit from fund-raising activities.5 09/09/2008 . A person can not be penalized in any way for not fund-raising. 7. Careful consideration should be given to limiting the number of major fund-raising activities involving students. 5. 6. Comply with all UIL guidelines. All applicable facility usage fees may apply in accordance with GKD administrative regulations. Encourage involvement by all parents of students participating in the supported activity. 3. drill team. Submit a copy of current adopted bylaws and operating procedures to the principal. Be voluntary and provide unified support for student activities of the school. USE OF SCHOOL FACILITIES District-affiliated school-support PTOs or booster organizations may use District facilities with prior approval of the appropriate administrator.or policy-making activities for a student group. Bonfires shall be prohibited as school-related activities. and in accordance with UIL guidelines as applicable. band. Not be involved in decision. 7.. District booster clubs shall: 1. BONFIRES BOOSTER ORGANIZATIONS 5.e. athletics.Board Policy GE (Local) modifications needed should be considered before approving the equipment purchase. i. choir. within adopted Board policies. Have no authority in directing or influencing District employees in the administration of duties. All other parent groups may use District facilities in accordance with policy GKD. 2. School-related booster organizations shall organize and function in a way that is consistent with the District’s philosophy and objectives.6 09/09/2008 . Be limited to a single club/organization for each area of student activity. etc. 4. utexas. for the most up-to-date version of this information. Hopper Director of Secondary Music Curriculum Coordinator for 9th – 12th Speech & Debate Director/Secondary Special Programs & Services 281-894-3980 281-463-5325 281-897-4042 281-856-1543 281-897-1326 University Interscholastic League (UIL) www. please go to the UIL’s website at www.University Interscholastic League (UIL) Booster Club Guidelines The following guidelines were downloaded from the UIL’s website.edu/policy/booster_clubs. The information documented below is subject to change by the UIL. please contact: Athletics: Drama: Music: NFL: JROTC: Larry Peil Antwanette Hill Larry Matysiak Ami Ruby Judy Reidy Director of Athletics Director of Instruction.uil.edu (Select Booster Club Guidelines) 512-471-5883 5. Therefore.uil/utexas.7 09/07/2010 .html If you have questions concerning UIL guidelines. *election of officers (suggestion: one president. The fundraising role of booster clubs is particularly crucial in today’s economic climate. Plus. school district personnel and student participants. academic or athletic.| GENERAL GUIDELINES | The role of competition Participation teaches that it is a privilege and an honor to represent one’s school. *how to plan and publicize meetings. Booster clubs must recognize this authority and work within a framework prescribed by the school administration. Students learn to win without boasting and to lose without bitterness. The superintendent is solely responsible for the entire UIL program. fine arts. events and personnel are under the jurisdiction of the superintendent. Artistic commitment and a desire to excel are traits found in music participants. Physical training and good health habits are essential to the best athletes. competition is fun! Role of the Superintendent Member schools make UIL rules and determine policies regarding penalties to schools. organizations (including the booster club). *bookkeeping and fund administration including process to obtain superintendent’s approval prior to raising or spending funds.presidents: one vice 5. one treasurer. Self-motivation and intellectual curiosity are essential to the best academic participants. Leadership and citizenship experiences through school activities help prepare students for a useful and wholesome life. All school activities. Interscholastic competition is a fine way to encourage youngsters to enrich their education and expand their horizons. and three vice . . Written Policies Booster clubs should develop and annually review policies to cover: *how to obtain administrative approval before beginning projects. Role of Booster Clubs Neighborhood patrons form booster clubs to help enrich the school’s participation in extracurricular activities. booster clubs should exist to enrich students’ involvement in extracurricular activities without endangering their eligibility.8 Updated July 2010 University Interscholastic League Booster Club Guidelines Be they music. one secretary. a coach can’t receive more money if a team or individual qualifies to region or state. not just members of the booster club. money go to outside promoters. distributing and filing minutes. *Booster groups or individuals may donate money or merchandise to the school with prior approval of the administration. *Sales campaigns should be planned carefully to insure that the projects provide dollar value for items sold. keeping the educational goals of competition at the forefront of all policies. private instruction or any activity outside of the school. fixed at the beginning of the year. treatment of officials. Otherwise donations are often more rewarding than letting the major part of the Updated July 2010 $ . directing or sponsoring UIL activities. including petty cash or miscellaneous discretionary funds. rules for participation. *Individuals who actively coach or direct a UIL activity should serve in an advisory capacity to the booster club and should not have control or signature authority over booster club funds. guests.. | ATHLETIC BOOSTERS | Club restrictions Booster clubs cannot give anything to students. The $500 limit is cumulative for a calendar year and is not specific to any one particular gift. All fans. *public communication. *The district may pay a stipend. athletic booster club funds shall not be used to support athletic camps. The penalty to a student-athlete is forfeiture of varsity 5. including awards. *Coaches and directors of UIL academics. should be aware of this rule. *Unlike music and academic booster clubs. etc. judges. but cash or other valuable consideration must be given to the school to use at its discretion. Nonprofit or tax-exempt status may be obtained from the Internal Revenue Service. clinics. *Booster clubs do not have authority to direct the duties of a school district employee. *a sportsmanship code governing behavior of booster club members and fans at contests. and that most of the money raised stays at home. Check t with school administrators before giving t s anything anyth to a student. It affects the entire community. *proper interaction with fine arts directors and academic and athletic coaches through the lines of authority as established by the school board. *Community-wide sales campaigns should be coordinated through the school administration to minimize simultaneous sales campaigns. athletics and fine arts may not accept more than $500 in money. *taking. Coaches wish-lists should have received prior approval from school administration before submission to boosters. *Minutes should be taken at each meeting and kept on file at the school. *School administration should apprise booster clubs of all school activities. The scheduling of contests.9 | CLUB FINANCES | Fundraising | Spending | Stipends | Gifts to Coaches Money given to a school cannot be earmarked for any particular expense. These kinds of donations are often made to cover the cost of commercial transportation and to cover costs for out-of-town meals. *Fund-raising projects are subject to state law. school sponsor or coach. *Fund-raising activities should support the educational goals of the school and should not exploit students. and *plans to support the school regardless of success in competition. *Individuals should be informed of the seriousness of violating the athletic amateur rule. The amount of the stipend can’t depend on the success of a team or individual. It would be a violation for booster groups or individuals to pay for such costs directly.president to oversee fall. Activities and projects should be investigated carefully before committing the school’s support. *Funds are to be used to support school activities. All meetings should be open to the public. as part of the annual employment contract. To provide such funding for non-school activities would violate UIL rules and the public trust through which funds are earned. *Booster clubs should apprise school administrators of all club activities. *Periodic financial statements itemizing all receipts and expenditures should be made to the general club membership and kept on file at the school. In other words. Schools must give prior approval for any banquet or get-together given for students. Booster clubs may make recommendations. methods of earning letters and all other criteria dealing with inter-school programs are under the jurisdiction of the local school administration. winter and spring sports). product or service from any source in recognition of or appreciation for coaching. Relationship with the school The superintendent or a designee who does not coach or direct a UIL contest has approval authority over booster clubs and should be invited to all meetings. Academics has no amateur rule. A purely recreational trip to Six Flags 5. With prior administrative approval. provided the funds are given to the school without designation to buy jackets for particular students and the school determines criteria for awarding the jackets. If the school does not pay for meals. parties provided by parents or other students strictly for an athletic team Local school district superintendents continue to have the discretion to allow student athletes to accept small “goodie bags” that contain candy. Booster Clubs may raise money to provide an annual banquet for academic participants and coaches. you may also: *Purchase equipment for programs such as computers or software for yearbook or computer science. Journalism participants may work for a newspaper and be paid. Other. Booster club funds may be used to provide food and refreshments for students on these trips. Banquet favors or gifts are considered valuable consideration and are subject to the Awards and Amateur Rules if they are given to a student athlete at any time. snacks or snack foods during or after practices. booster clubs should not give gifts or awards to students for their participation in UIL contests that count toward district. which states that athletes cannot accept money or valuable consideration for participating in a UIL sport or for allowing their names to be used in promoting a product. School athletic teams may be given postseason meals if approved by the school. . small ‘goodie bags’ that contain candy. that is not given to all other students. School booster clubs may raise money to purchase letter jackets. 3. *Parties for athletes are governed by the following State Executive Committee interpretation of Section 441 of the UIL Constitution & Contest Rules.10 Updated July 2010 Official Interpretation of the UIL Athletic Amateur Rule. etc. Student athletes are prohibited from accepting valuable consideration for participation in school athletics . Students should pay admission fees during school field trips. | ACADEMIC BOOSTERS | The rules for athletics are different than the rules for academics and music. wearable. Athletes are restricted by the Athletic Amateur Rule. as a general practice. *Homemade “spirit signs” made from paper and normal supplies a student purchases for school use may be placed on the students’ lockers or in their yards. plastic. 2. must be returned after the season. but may not accept anything. Actors may work summer stock and be paid. Athletes or athletic teams may be recognized at these functions. other than food items. *Organize and chaperone trips and assist with expenses for travel to academic competitions or educational trips such as journalism conventions or speech tournaments. UIL academic students are restricted by the Awards Rule. salable or consumable. Parents may purchase anything they wish for their own child but may not provide food for their child’s teammates unless approved by the school. school athletic teams and athletes may be invited to and may attend functions where free admission is offered. include but are not limited to: 1. Trinkets and food items cannot be attached. 2. if approved by the school.athletic eligibility in the sport for which the violation occurred for one calendar year from the date of the violation. *The school may provide meals for contests held away from the home school. section 441 of the UIL Constitution and Contest Rules: (a) VALUABLE CONSIDERATION SCHOOL TEAMS AND ATHLETES MAY ACCEPT: 1. cookies or other items that have no intrinsic value and are not considered valuable consideration. or where refreshments and/or meals are served. So. Yard signs made of commercial quality wood. the individual parents need to purchase their own child’s food. meals. The school may also provide supplies for games and practices and transportation for school field trips. plan or service related to a UIL contest. Students may win calculators and software for participating in invitational math contests. If approved by the school. Local school districts superintendents have the discretion to allow student athletes to accept.anything that is not given or offered to the entire student body on the same basis that it is given or offered to an athlete. Parents may purchase jackets for their own children provided the school designates the student as being qualified to receive the jacket. if not purchased or made by the individual player’s parent. School athletic teams may be given preseason meals. cookies or other items that have no intrinsic value and are not considered valuable consideration. from their fellow students. Valuable consideration is defined as tangible or intangible property or service including anything that is usable. region or state standing. Post-Season. (b) ADDITIONAL VALUABLE CONSIDERATION THAT SCHOOL TEAMS AND ATHLETES MAY ACCEPT Examples of additional items deemed allowable under this interpretation if approved by the school. Pre-Season. Therefore. educational components need not be limited to performances. Concert attendance. *Have a chain of command for communication with the administration. recruit corporate donors. and live by those standards yourself. raise money for scholarships and arrange for tutors and professional trainers to work with students. on the other hand. journalism or math/ science. For such trips. *Many music groups schedule educational field trips with the approval of the local school administration and under local school district policies.uil. an adjudicated contest or a concert tour.utexas. Selection could be based on grade point average or the student’s selection of high school courses. *Some music booster clubs assist with expenses for travel to various music-related activities such as UIL contests and performances at away athletic events. All students meeting the conditions for scholarship assistance should be notified and eligible for financial assistance. such awards should be approved and administrated by the local school district in accordance with school district policies. uphold the law and respect authority. Marching performances such as the Macy’s Thanksgiving Day Parade. *Delegate authority to the school. Don’t have unrealistic expectations. whether they cover UIL academic competition in general or specific programs such as theatre. Don’t criticize. non-performing opportunities would also be appropriate if approved by the local school district. *Allow your children to live their own lives. the following guidelines apply to Music Booster Club activities. *A recreational trip.Over Texas would not meet the definition of an educational field trip and could be considered a violation of the Awards Rule. speech/debate. *Be aware of capabilities and limitations of young people. *Set standards by which you expect children to conduct themselves. Coaches and Fine Arts directors *Be sure your booster club wish list has been approved by your supervisor before it goes to the booster club. *Booster Clubs may also fund scholarships for private Updated July 2010 Work with the administration *Positive and direct communication can prevent most problems. Such financial support violates no UIL rules provided that it is approved and coordinated by the local school district. limitations established in athletics intended to ensure compliance with the Athletic Amateur Rule do not apply to music programs and related activities. specific educational components must be included such as performing for a music festival. *Help your children and their friends develop integrity through the intensity of competitive activity. *Have an officer meet with the school administration regularly. What You Can Do: Parents *Remember: The classroom comes first! *Help conduct fair and equitable competition: adhere to rules. *Involve your staff with your booster club. *Be involved in areas in which your own child is not involved. *Understand that your advisory role to the boosters is without vote. Funds should be monitored to ensure that they are expended for camp or workshop purposes. In order to protect all music students’ eligibility. | MUSIC BOOSTERS | In addition to the general procedures outlined. Let the booster club know who your staff is and what duties they perform. *Attend the booster club meetings and/or know what the club is doing.11 . thus contributing to school unity and spirit. Respect their decisions. *Remember that officials are human. *Fund academic workshop scholarships provided selection of the recipients is not based solely on their success in interscholastic competition. Keep the superintendent informed of all activities. *Support other programs within your district. Students receiving the benefits of a purely recreational trip would likely be in violation of the Awards Rule. *Show respect to the opponents of your children. organize fund-raising efforts. *Clear all activities through your administration. would not meet the definition of an educational field trip as provided in Section 480 of the UIL Constitution and Contest Rules.edu 5. *Praise. www. However. lessons and summer music camps provided the selection of the recipients is not based on success in interscholastic competition. *Be mindful of the fact that there is no Music Amateur Rule. *The awarding of patches. T-shirts or other items for achievement in interscholastic competition would be subject to the UIL Awards Rule. *Invite administrators to all booster club meetings. *Make your request to the club benefit as many students as possible. then support its decisions. *Make sure your local administration has a copy of all club publications. *Meet with parents regularly and make them aware of relevant rules. visiting university/conservatory music facilities and other music related. A great need exists for parental involvement and support. *Run tournaments. Urge others to do the same. We wish we had more academic booster clubs. the Rose Bowl Parade or other similar ceremonial appearances also qualify. *Work with your administration to determine what your club can provide. Funds for such activities should be carefully monitored to ensure that they are expended for educational rather than recreational activities. ...................... is not responsible for a Booster Club not being in good standing with all state agencies....15 5... Franchise Tax ....................12 09/07/2010 ...... however. This information is organized as follows: Page Obtaining a Texas Sales Tax Permit .... these steps are only general guidelines and do not ensure that a Booster Club will remain in compliance with all state tax regulations.................. Reporting Requirements......................................................................................... 5........................ General State Regulatory Information Booster Club officers are solely responsible for ensuring that their Booster Club is in compliance with all state regulations......... However.................... Steps have been documented to aid a Booster Club in abiding by the regulations....... Therefore. Qualifying for Exemption from Texas Sales and Use Tax... not specific or all-inclusive....... Change in Address .............................. Therefore... information to Booster Clubs regarding state tax regulations................................................State Regulatory Information This section has been prepared to provide general.................... This counsel may include a Certified Public Accountant (CPA) or an attorney.................................13 5............................................... the District has provided the following information that includes detailed steps Booster Clubs should take to comply with state tax regulations..14 5... the District....14 5....... Further Questions? .................. Each Booster Club should strive to remain in good standing with all state agencies.............................13 5. including any District employee........................ each Booster Club is responsible for obtaining its own competent independent counsel on accounting and tax matters related to its specific circumstances.15 5........................ The cost of these services would be the Booster Club's responsibility. or person must apply for a Sales Tax Permit. To determine if your Booster Club has a permit you may use the searchable Taxpayer Information Database at www.tx. some Booster Clubs sell services that may be taxable. 2. A Texas Sales Tax Permit will be issued to the Booster Club along with a Sales Tax Permit Number. or 3. Booster Clubs may obtain a Texas Sales Tax Permit by submitting the completed applications to the Texas Comptroller’s Office. Booster Clubs should obtain a Texas Sales Tax Permit if you intend to sells goods or taxable services in Texas. The permit numbers beginning with a "3" are assigned by the Comptroller’s Office. a company.us. The sales and use tax exemption allows approved organizations an exemption from sales tax when purchasing items to further the organization’s exempt purpose.tx. The sale of goods does include fund-raisers. See Appendix for additional information from Texas Comptroller’s Office. Qualifying for Exemption from Texas Sales and Use Tax To apply for exemption based on the federal exempt status. you may also do an Exempt Organization Search to verify if your Booster Club is exempt.window. T-shirt sales.us/taxinfo/exempt.tx.State Regulatory Information Obtaining a Texas Sales Tax Permit To sell any taxable items within the State of Texas.13 09/07/2010 . The Texas Sales Tax Permit Number has 11 digits and begins with a 1. complete application AP-204. This exemption process is separate and in addition to applying for federal tax-exemption from the IRS. Note: Go to the Texas Comptroller of Public Accounts website at www.state.us/taxinfo/exempt. Booster Clubs cannot use the District's Sales Tax Permit Number.window. On this webpage. organization. such as candy sales. 5. Those permit numbers beginning with a "2" are based on a person's social security number. this exemption allows the approved Booster Club to make sales tax-exempt purchases of items intended for resale for a fund-raiser. and sales of other items.state.window. Therefore. The permit numbers beginning with a "1" are based on an entity's EIN.state. You must apply on-line for the Texas Sales Tax Permit. In addition. See website at www. The Texas Comptroller’s Office will generally communicate changes in filing requirements to the Booster Clubs in writing. tax-free” sales or auctions per calendar year. etc. The amount of anticipated sales tax payments affects the frequency of reporting. The vendor should remit the applicable sales tax to the Texas Comptroller’s Office. candles. but cookie dough is exempt from sales tax by law. or annually. A fund-raiser qualifies for the “one-day. are subject to sales tax when sold on days other than the two (2) “one-day. In addition. the frequency of reporting can also change. therefore. Failure to do 5. If you plan to hold a catalog fund-raiser. taxfree” sales or auctions per calendar year. This reporting frequency is no longer available for new Booster Clubs. The frequency of filing the sales tax report is determined by the Texas Comptroller’s Office. tax-free” sale/auction if all items are to be delivered on one day. The sales tax reports may be due monthly. Franchise Tax Every profit and nonprofit corporation in Texas must file all franchise tax reports and public information reports with appropriate payment until the Comptroller’s office has granted tax exemption. Remember: You must be granted the exemption first to be entitled to the two (2) “one-day. must collect sales tax for items sold that are taxable. tax-free” sales per calendar year. For instance. tax-free” sale/auction days.State Regulatory Information The Booster Clubs with the exemption are entitled to two (2) “one-day. Since sales tax payments may vary from year to year. Your booster club is considered an agent of the vendor and. the Texas Comptroller’s Office will generally mail the required reporting form and information to organizations that have obtained a Sales Tax Permit. Each "one-day" sale/auction may not exceed 24 consecutive hours. Some Booster Clubs have reports due on a seasonal basis (semiannually). cups. gift wrap is taxable. Reporting Requirements The Texas Comptroller’s Office requires that Booster Clubs file at least one sales tax report per calendar year. and CANNOT be considered as one of your two (2) “one-day. All catalog fund-raisers are considered taxable. Sales of items such as T-shirts.14 09/07/2010 . quarterly. tax must be collected for those items in the fund-raiser that are taxable. State Regulatory Information so will cause the loss of corporate privileges as well as the forfeiture of charter by the Texas Secretary of State. Although a nonprofit corporation that is exempt from federal income tax under Internal Revenue Code 501(c)(3) is exempt from franchise tax. the exemption is not automatically granted. Booster Clubs must apply for exemption with the Texas Comptroller’s Office based on the federal exempt status. the Texas Comptroller’s Office recommends that each Booster Club obtain its own post office box (PO Box) or private mailing box (PMB) to be used for official Booster Club mail.tx. For additional franchise tax information. 34142 5.15 09/07/2010 .us. immediately notify the Texas Comptroller’s Office. Further Questions? Texas Comptroller’s Office Austin Office Exempt Organizations Department 1-800-252-5555 (toll-free) 1-800-531-5441 ext. under Franchise Tax. To avoid frequent mailing address changes. Booster Clubs that have received their Determination Letter from the IRS granting 501(c)(3) tax exemption may also request exemption from the Texas franchise tax through the Texas Comptroller’s Office.state.window. Change in Address If the mailing address for the Booster Club changes. In addition. Failure to do so may result in important correspondence being lost. the post office box address and keys can be given easily to the new officers at the beginning of each new year. go to the Texas Comptroller’s Office website at www. tx.state.tx.tx.state.window.State Regulatory Information Website addresses Texas Comptroller’s Office Sales Tax Information Exempt Organizations www.window.window.16 09/07/2010 .us www.us/taxinfo/exempt 5.us/taxinfo/exempt www.state. ........... However...........21 5....23 5........... the District has provided the following information that includes detailed steps Booster Clubs should take to comply with federal tax regulations....................................... Change in Address........... Becoming a Public 501(c)(3) Tax-Exempt Organization... Why Do I Want To Be a Public 501(c)(3)?.......23 5.......... 5..............................17 09/07/2010 ........ information to Booster Clubs regarding federal tax regulations......... Therefore.......Federal Regulatory Information This section has been prepared to provide general............. Further Questions?. The cost of these services would be the Booster Club's responsibility.......irs.. each Booster Club is responsible for obtaining its own competent independent counsel on accounting and tax matters related to its specific circumstances.25 5............20 5............................... the District........... not specific or all-inclusive........................ Why Do I Want To Be Tax-Exempt? ............... these steps are only general guidelines and do not ensure that a Booster Club will remain in compliance with all federal tax regulations........ General Federal Regulatory Information Booster Club officers are solely responsible for ensuring that their Booster Club is in compliance with all federal regulations........................21 5.......................................................... including any District employee..................................................................... This information is organized as follows: Page Obtaining an Employer Identification Number ............. 5.. is not responsible for a Booster Club not being in good standing with all federal agencies...................... Steps have been documented to aid a Booster Club in abiding by the regulations......... Advance Ruling Period (Temporary Tax-Exempt Status) .... Each Booster Club should strive to remain in good standing with all federal agencies.......... This counsel may include a Certified Public Accountant (CPA) or an attorney........19 5..................25 For more details...................gov/charities.............................. see Life Cycle of a Public Charity on the IRS website at www.... Therefore.................... however.......................................... Applying for Public 501(c)(3) Tax-Exempt Status.....18 5........ Filing Requirements for Tax-Exempt Organizations.. including the Internal Revenue Service (IRS)................... Note: No fee is required for obtaining an EIN. Booster Clubs can not use the District's EIN. PA 19255 The processing timeframe for an EIN application received by mail is four weeks. The EIN will be issued to the individual over the telephone. 4. Likewise. All organizations must first apply for an EIN to be recognized as a unique entity and then apply for tax-exempt status. Since Booster Clubs are separate entities from the District. Applying by Phone Call Business & Specialty Tax Line at (800) 829-4933.Federal Regulatory Information Obtaining an Employer Identification Number Every organization must have an employer identification number. 2. A fax will be sent back with the EIN within four (4) business days. IMPORTANT An organization is not automatically considered tax-exempt by acquiring an EIN. EIN Operation Philadelphia. and an EIN is issued immediately. the mere fact that an entity is organized as a non-profit organization does not indicate that it is exempt from federal tax. 5. Booster Clubs may obtain an EIN by: 1. The employer identification number is a unique number that identifies the organization to the Internal Revenue Service. Applying by Fax Fax the completed Form SS-4 application to (859) 669-5760. 3. Applying by Mail Mail the completed Form SS-4 to: IRS Attn.18 09/07/2010 . even if it will not have employees. Appling Online Once the application is completed. the information is validated during the online session. all members of the student group sponsored are to be treated equally and receive the same opportunity to benefit from the Booster Club’s assistance. Therefore. Taxes are not paid to the IRS for revenues raised. "Individual accounts" are those accounts used by a Booster Club to credit an individual with revenues raised. Please note that individual accounts do not refer to bank accounts. Since Booster Clubs usually assist student groups. You may also want to have the Secretary keep a backup copy of these documents on a CD. and the criteria should not change every year. the group or club could provide the necessary funds to allow the individual to participate. Contributions to certain tax-exempt organizations [501(c)(3)] are tax-deductible by the contributor. Booster Clubs should not use an individual’s social security number to conduct the business of the organization." Some benefits to becoming tax-exempt as a public 501(c)(3) organization include: 1. However. If the criteria are met.19 09/07/2010 . In some instances. individuals may not be able to afford to pay the amount owed to participate in a particular event.Federal Regulatory Information After receiving your EIN. 5. The IRS has indicated that a group or club may establish criteria that could be used to determine if a person is in financial need. Tax-exempt organizations cannot use individual accounts. the criteria should be used consistently for all people. The criteria should be established in writing prior to a particular situation arising. the following are restrictions placed on tax-exempt organizations that Booster Clubs must follow to receive tax-exempt status and to retain that status: Tax-exempt organizations must benefit a group as a whole instead of benefiting individual members of a group. The Booster Clubs would use these accounts to benefit the individual by offsetting that individual's expenses with the amount credited to that individual from the revenues raised. one student cannot receive a greater benefit than another unless the criteria for financial need discussed below is met. In addition. and 2. Why Do I Want To Be Tax-Exempt? The IRS Tax Code provides for special treatment of certain organizations identified as "tax-exempt. you may use it to then open a bank account and obtain a State Sales Tax Permit. Copies of the completed SS-4 form and the IRS response documenting the assigned EIN number should be kept in the Booster Club's permanent records from year to year. Since revenues from the catalog sale were to be used to defray some of the dance camp expense. the tax-exempt Dance Team Booster Club must give all 10 dance team members an equal opportunity to benefit from the catalog sale. however. subject to certain individual restrictions. are deductible on the contributor's tax return.20 09/07/2010 . 501(c)(3) organizations are eligible for state tax benefits. (See the State Regulatory Information. The members or students cannot be penalized in anyway for not participating in a fund-raiser.000 for its 10 members ($200 each). In addition. The Dance Team Booster Club decides to have a catalog fund-raiser to help defray some of the cost of the summer dance camp. even though only 2 members participated. members of the student group who do not participate in fund-raising activities would receive the same opportunity to benefit as those members of the student group who participated. only 2 participate in the catalog sale that generates the $200. This type of exemption means that the organization is tax-exempt. In addition. Booster Clubs should apply for the public 501(c)(3) tax-exemption. Booster Clubs raise funds for a student group through the efforts of the Booster Club members. The following is an illustration of the above concepts: A dance team is attending a summer dance camp that costs $2. Normally. Of the 10 total members of the dance team. each member's cost for attending the summer camp would be $180 ($200 cost .) 5. A Booster Club cannot require its members or the students in the related student group to participate in a fund-raiser. the majority of its income is from the public. Tax-exempt organizations cannot require a person to participate in fund-raising activities. This means that each member's cost would be reduced by $20 ($200 / 10 members). a Booster Club cannot require that each Booster Club member or student of the assisted group sell $20 worth of candy or sell 10 candy bars in a fund-raiser. the individual benefits received by people would result in taxable income to them.Federal Regulatory Information The purpose of a tax-exempt organization is to benefit an entity as a whole instead of benefiting individuals. Tax-exempt organizations cannot require that a certain amount be raised or sold per person. Furthermore. For example. sometimes the students of the group being assisted participate in the fund-raising activities. which is deposited into the Dance Team Booster Club's bank account. and all donations.$20 fund-raiser benefit). Why Do I Want To Be a Public 501(c)(3)? When applying for tax-exempt status with the IRS. The catalog sale generates a total of $200 of revenue. the use of individual accounts could result in denial of the application for tax-exempt status by the IRS or the loss of existing tax-exempt status. Therefore. Therefore. organizations must apply for taxexempt status. According to the IRS.000 during the last 4 years or if you are a new organization that does not anticipate annual gross receipts exceeding $10. Complete IRS Form 8718 (User Fee for Tax-exempt Organization Determination Letter Request) and pay the required fee of $400 or $850. Complete IRS Package 1023 (Application for Recognition of Exemption) seeking tax-exempt status as a public 501(c)(3) organization. Form 8718.000 during your first 4 years. With a 501(c)(3) tax-exempt status.Federal Regulatory Information The IRS has several other tax-exempt categories. and a check for the filing fee to: Internal Revenue Service PO Box 192 Covington. Applying for Public 501(c)(3) Tax-Exempt Status 1. but do not allow for deductible donations under any circumstances. All other categories allow for tax-exemption. 5. The Booster Club officers should take the necessary steps to ensure they follow the regulations regarding that type of entity. an organization may be public or private. 3. all Booster Clubs must obtain tax-exempt status with the IRS as a public 501(c)(3) organization.21 09/07/2010 . the 501(c)(3) status is the ONLY category that allows any donations to be deductible on the contributor's tax return. According to Board Policy GE (Local). organizations may not represent themselves as tax-exempt until they have obtained notification from the IRS stating they are a tax-exempt entity. KY 41012 The filing fee is $400 if your annual gross receipts averaged no more than $10. A private 501(c)(3) organization has additional requirements and constraints that a public 501(c)(3) organization does not have. an organization is either a taxable organization or a tax-exempt organization. however. Therefore. Becoming a Public 501(c)(3) Tax-Exempt Organization Tax-exempt status is not automatic once an EIN has been issued. 2. all Booster Clubs should apply for tax-exempt status as a public 501(c)(3) organization. Mail Package 1023. Furthermore. the Club’s Form 990 would not be due to the IRS until November 15. you may wish to align your year-end with the school’s year-end date of June 30. Sources may include.000 during the last 4 years or if you are a new organization that anticipates annual gross receipts exceeding $10.Federal Regulatory Information The filing fee is $850 if your annual gross receipts averaged more than $10. amounts collected for the payment of expenses (e. When considering a fiscal year-end date. uniforms. Add cash on hand that was not deposited by the end of its reporting year. the financial activity of the Club can relate easily to a given school year. therefore. Once this date is established. Changes are usually only allowed for extreme circumstances. the current officers can prepare the annual Financial Report and have it audited before the new school year begins. Read “Top Ten Reasons for Delays in Processing Exempt Organization Applications” in the Appendix before you submit your application!! The IRS will send the organization an Acknowledgement of Your Request letter that indicates your application and fee were received and are being processed. and any other amounts received. Less transfers from one bank account to another. Annual gross receipts: The total amount of revenue collected by an organization during its reporting year from any source. Second. 5.g. The return is due 4 ½ months after the end of a fiscal year (the 15th day of the 5th month after the organization’s accounting period ends). When completing the IRS Package 1023. membership fees.. To determine annual gross receipts: Add all deposits made to the Booster Club’s bank account(s).000 during your first 4 years. donations.22 09/07/2010 . Booster Clubs will establish their fiscal year-end (also known as the accounting period year-end or official year-end). The date established will determine when the Booster Club has to file their informational return (Form 990) to the IRS. and Add expenses paid with money collected that was not deposited in the Booster Club’s bank account(s). Third. but are not limited to. This way. the IRS does not easily allow an organization to change it. The IRS approval process for tax-exempt status usually takes several months. trips). the new officers would have time to prepare it after beginning the new school year. fund-raising revenues. Advanced Ruling Period (Temporary Tax-Exempt Status) As of September 9. Only then can the organization represent itself as a federally tax-exempt organization. If the IRS does not grant tax-exempt status. Likewise. Return of Organization Exempt from Income Tax. Filing Requirements for Tax-Exempt Organizations Annually. donations received are not deductible on the contributor’s tax return. Booster Clubs should clearly state in all advertisements that donations to the organization are “not tax-deductible” so that a contributor is not misled and does not incur penalties levied by the IRS for taking the deduction erroneously. and beginning with its sixth taxable year and all succeeding years. Furthermore. All organizations that had an advanced ruling period that ended after June 9. if your tax year ended on June 30.Federal Regulatory Information Upon approval by the IRS of the tax-exempt status. Send a copy of the Acknowledgement of Your Request and a copy of the Determination Letter to the District's Internal Auditor when each is received.. 990-EZ. It must file returns annually. the organization will receive a Determination Letter stating that the organization is considered to be tax-exempt as of a certain date. the Form 990 is due November 15. 2008. 2008. 2008. would automatically be classified as a public charity for its first five years of existence regardless of the support actually received. donations to the organization are only deductible on the contributor’s tax return as of the effective date on the Determination Letter received by the Booster Club granting 501(c)(3) tax-exempt status and within set guidelines that apply to 501(c)(3) organizations. the organization will receive a Letter of Denial stating the organization is not considered tax-exempt. For example. if the Booster Club receives tax exemption under any other code [i. it must meet the public support test as shown on Schedule A of Form 990. Therefore. 501(c)(4). 2009. 501(c)(7)]. each Booster Club must file an exempt organization information return Form 990-N. The return is due by the 15th day of the 5th month after the close of your tax year. or 990. 5. the IRS eliminated the Advanced Ruling Process for 501(c)(3) organizations and the filing of Form 8734 for those exempt organizations that had an advanced ruling period that ended after June 9.e.23 09/07/2010 . 2009. Examples of an Acknowledgment of Your Request and a Determination Letter have been included in the Appendix. 250. The e-Postcard is due every year by the 15th day of the 5th month after the close of your tax year. This new requirement began in 2008. file the appropriate 990 form as required by exempt organizations. 5.Federal Regulatory Information According to the IRS.000 or more at year-end. Gross receipts are $200. The e-Postcard is required to be filed on-line. normally known as the e-Postcard if: 1. Whether your Booster Club has filed for exemption status with the IRS. Booster Clubs must use Form 990-EZ if: 1. Booster Clubs must use Form 990 if: 3. such as small Booster Clubs.000 or less. For the fiscal year ends in 2011 and later: Booster Clubs must use Form 990-N.000 or more 2. small tax-exempt organizations. Total assets are less than $1.000 or less. For the fiscal year ends in 2010: Booster Clubs must use Form 990-N.250. Gross receipts are $50.000 at year-end. that previously were not required to file returns are now required to file an annual electronic notice Form 990-N (e-Postcard).000 AND 2.000 AND 2. normally known as the e-Postcard if: 1.000 at year-end.000 or more at year-end. Total assets are less than $500. Booster Clubs must use Form 990-EZ if: 1.000 but less than $500.000 or more 4. Gross receipts are $500. Gross receipts are more than $25. Booster Clubs must use Form 990 if: 1. You cannot file the e-Postcard until after your tax year ends.24 09/07/2010 .000 but less than $200. Gross receipts are $25. Total assets are $1. Total assets are $500. Gross receipts are more than $50. Federal Regulatory Information Change in Address If your address has changed, you need to notify the IRS to ensure you receive any IRS refund or correspondence. To change your address with the IRS, you may complete a Form 8822, Address Change Request, and send it to the address shown on the form. Further Questions? If you have additional questions regarding the information discussed above, you may contact: Internal Revenue Service Main Number Tax-Exempt Organizations Tax Forms & Publications Website addresses IRS Home Page 1-800-829-1040 (toll-free) 1-877-829-5500 (toll-free) 1-800-829-3676 (toll-free) www.irs.gov Additional information downloaded from the IRS’ website is included in the Appendix. 5.25 09/07/2010 Included in this section: Taking Care of Business Overview Booster Club Information Sheet Financial Report Information & Formats Review Report Information & Formats 08/01/2008 Taking Care of Business Overview Booster Clubs have many responsibilities to the federal government, the state, the District, and to the students they support. Part of this responsibility is to keep accurate and updated records so that the organization may complete the necessary filing requirements with the state and the IRS. In addition, these records will help you prepare your annual Financial Report and Review Report due to the Sponsor, the Principal, and the Director of General Administration by September 15, of each year. This section includes information that must be turned in to pertinent District personnel including the Booster Club Information Sheet that must be submitted each year and as officers change. In addition, this section will also guide you in preparing the Financial Report and related Review Report. Most of the reporting requirements of a Booster Club are dependent on the financial records kept as discussed in the Day-to-Day Responsibility section.; therefore, the office of Booster Club Treasurer is an extremely important and vital position that should not be taken lightly. Even though the Treasurer may assign certain duties to another person (i.e., Fund-raiser Chairperson – Catalog Sales), the Treasurer is ultimately responsible for assuring that all financial records are maintained accurately for the Booster Club. 6.1 08/01/2008 Employer Identification Number (EIN): 5. Official Booster Club Name: 2. Official Mailing Address: PO Box / Street Address: City. 1. Current Booster Club Officers for the School Year Office Held: Printed Name: Mailing Address: Phone Numbers: E-mail Address: Hm: Wk: Cell: Office Held: Printed Name: Mailing Address: Phone Numbers: E-mail Address: Hm: Wk: Cell: By law. State & Zip Code: 6. Sponsor’s Name: 4.2 08/01/2008 . School Name: 3. 6.Booster Club Information Sheet Send an updated copy of this form to the Internal Audit Department and to your School Principal or Administrator as new officers are elected or as information changes. information on this page is public information and must be released to the public at such requests. Date of Change: 7. 3 08/01/2008 . 6. Current Booster Club Officers (Continued) Office Held: Printed Name: Mailing Address: Phone Numbers: E-mail Address: Hm: Wk: Cell: Office Held: Printed Name: Mailing Address: Phone Numbers: E-mail Address: Hm: Wk: Cell: Office Held: Printed Name: Mailing Address: Phone Numbers: E-mail Address: Hm: Wk: Cell: By law. information on this page is public information and must be released to the public at such requests.Booster Club Information Sheet Send an updated copy of this form to the Internal Audit Department and to your School Principal or Administrator as new officers are elected or as information changes. 7. Booster Club Information Sheet Send an updated copy of this form to the Internal Audit Department and to your School Principal or Administrator as new officers are elected or as information changes. information on this page is public information and must be released to the public at such requests.4 08/01/2008 . Current Booster Club Officers (Continued) Office Held: Printed Name: Mailing Address: Phone Numbers: E-mail Address: Hm: Wk: Cell: Office Held: Printed Name: Mailing Address: Phone Numbers: E-mail Address: Hm: Wk: Cell: Office Held: Printed Name: Mailing Address: Phone Numbers: E-mail Address: Hm: Wk: Cell: By law. 7. 6. name of Booster Club. The Financial Report and Review Report are not audited by the District. Type 1 report format is the simplest to prepare. the time period used for reporting actual revenues and expenditures may vary from club to club. 2010. Type 2 . equity. or receipt of amounts in which income is not yet recognized. The Booster Club may want the time period used for reporting purposes to coincide with the election of new officers. of the following year. and the time period covered in the report.This example is a cash basis financial report that includes the beginning and ending cash balances for the year. and signature of person who prepared the report. Foot all column totals of the Financial Report for accuracy. If new officers normally come into office May 1. however. The Financial Report and the Review Report must be presented at a Booster Club meeting that includes its general membership by October 31 of each year. The beginning cash balance for the current year should agree to the ending cash balance from the prior year. Date the report was prepared.This example is an accrual basis financial report that includes assets. The following examples of Financial Reports are included in this handbook: Type 1 . the individual Booster Clubs should try to be consistent in the time period they use from year to year. of each year. liabilities. Money received is usually shown as income and money paid is usually shown as an expense. The Treasurer of the Booster Club should prepare the Financial Report and should ensure that the Financial Report includes: Name of school. The current year report should start at the point in time where the prior year report ended. the School Principal. and the Director of General Administration by September 15. to April 30.Financial Report Information & Formats Each year Booster Clubs are required to submit a written report of actual revenues and expenditures (Financial Report) for that school year to the Sponsor. then the 2010-11 report will begin as of July 1. For example. income.5 09/07/2010 . and expenses. The retained earnings amount should agree to the total equity amount from the prior year. but would also show amounts to be received or amounts to be paid in which money has not yet been exchanged. 2010. Name. if the 2009-10 report ended on June 30. the time period for the Financial Report may be from May 1. prepayments of expenses that have not yet been incurred. title. Since clubs may start their new year at various times. 6. This report would include the cash transactions. of the following year. Actual revenues and expenditures for the applicable school year. 502.6 Title / Date 09/07/2010 .00 $28.084.46 $3.235.91 $8.37 Cash Basis Financial Report prepared by: Printed Name / Signature 6.03 $1.84 $2.569.Financial Report Information & Formats Type 1 Page 1 of 1 XYZ High School Spirit Booster Club CASH BASIS FINANCIAL REPORT From July 1.29 $1.77 $ 236.589.50 $2.625.320. 2009 through June 30.540. 2010 Beginning Cash Balance as of July 1.77 $2.88 $4.00 $9.242.875.355.75 $8.10 $ 650.328. 2010 $5.848. 2009 INCOME Concession Stand Sales Fall Dance Membership Dues (225 members) Program Ad Sales Uniform Income (212 new uniforms ordered) Total Income EXPENSES Competition Trip Expense Concession Stand Supplies Fall Dance Expense Miscellaneous Supplies Postage Program Ad Expenses School Donation (Sound System) Uniform Expense Total Expenses Net Income (Loss) for Current Year Ending Cash Balance as of June 30.540.00 $5.00 $9.25 $9.00 $31.111.262. 000.154.75 $ 500.77 $3.865.00 $ 300.7 09/07/2010 . 2010 ASSETS BankOne Checking Account BankOne Savings Account Accounts Receivable Prepaid Storage Rent TOTAL ASSETS LIABILITIES & EQUITY Liabilities Accounts Payable Deferred Membership Income Scholarship Payable Total Liabilities Equity Retained Earnings Net Income (Loss) From Current Year Total Equity TOTAL LIABILITIES & EQUITY $1.Financial Report Information & Formats Type 2 Page 1 of 2 XYZ High School Spirit Booster Club BALANCE SHEET As of June 30.112.25 $5.024.02 $2.025.000.458.00 $ 5.12 $4.15 $ 6.135.75 Balance Sheet and Income Statement prepared by: Printed Name / Signature Title / Date 6.524.02 $3.27 $11.00 $1.025.00 $11. 56 $ 770.752.03 $ 4.000.00 $2.68 $ 32.Financial Report Information & Formats Type 2 Page 2 of 2 XYZ High School Spirit Booster Club INCOME STATEMENT For the Period of July 1.00 $ 9. 2009 through June 30.388.00 $ 770. 2010 INCOME Catalog Sales Donations Interest Income Membership Dues (100 members) Uniform Income (22 new uniforms ordered) Total Income EXPENSES Banquet Catalog Sale Expense Postage Scholarships Storage Rental Supplies Uniform Expense Total Expenses Net Income (Loss) For Current Year $9.00 $14.00 $ 328.8 09/07/2010 .18 $1.18 $2.13 $3.237.66 $2.500.865.00 $ 600.372.129.15 6.00 $ 38.300. Sponsor’s spouse. and the Director of General Administration by September 15 of each year. Because of the material exception(s). The Review Report along with the Financial Report should be submitted to the Sponsor. the Financial Report is not proper and correct. An internal Review Committee should use the examples of Review Reports included on the next few pages. However. The Sponsor. however. 6.Review was performed with immaterial exception(s) being noted. regardless of the size of the committee. However. Option B .Review was performed with material exception(s) being noted. However. they would not be considered non-officers for the purpose of the review. the same information must be documented for each committee member (as opposed to the group as a whole). When this situation occurs. however. In some instances. IMPORTANT The Treasurer(s) [and Assistant Treasurer(s). if applicable] should not be on the Review Committee. The organizational review committee. The review committee may be two types: internal or external. due to material exception(s). the Financial Report appears proper and correct. or Officer’s spouse can not be the designated “non-officer” member of the Review Committee. they can not also be the reviewers.9 09/07/2010 . must prepare a written Review Report that communicates the results of the review to the organization. An internal review committee includes officers and club members. the committee may not be able to determine whether the Financial Report is proper and correct. the committee may state that the status of the Financial Report could not be determined because of material exception(s). therefore. Option C . the Club may have more or fewer committee members.Review was performed with no exceptions noted. an external party should show the results of the review in their own report format with their signature and date included. Since they are reviewees. the Financial Report appears proper and correct. They may be part of the Review Committee. the committee should have at least one non-officer member review the information. they may meet with the committee or external reviewer to explain their records or answer questions. A CPA or other outside party may perform an external review at the Club’s expense. Except for these minor exceptions. The Financial Report was either corrected or exceptions did not have a material effect. whether internal or external. Although the examples included show space for four (4) members. the School Principal.Review Report Information & Formats Each Booster Club is required to have an organizational committee conduct an annual review of the organization's Financial Report and the related financial activity for the school year. The Booster Club Review Report examples include: Option A . In addition. Compare cash receipts and deposits to the bank statement. Review the reconciled bank statements and canceled checks to determine that: 1.10 09/07/2010 . The report should include information for the twelve months after the ending date of the previous year’s Financial Report. Determine that only applicable Booster Club officers are authorized signers on the bank account(s). Foot all column totals of the Financial Report for accuracy. and fine arts were not given more than $500 in money. or service(s) in recognition for coaching. a District employee can not be the Treasurer or an authorized signer on the Booster Club's bank account(s). 4. 3. (See Authorization for Signer on PTO & Booster Club Bank Accounts in the Appendix. Checks have been deposited or cashed by the payee indicated and that no information on the face of the check has been altered. directing. Disbursements have been properly documented with an invoice or receipt. Verify that receipts and disbursements were recorded to the correct account category. product(s). 2. Disbursements have been properly approved. If the Club is using an accrual basis financial report. 6.) Determine that the coaches and directors of UIL academics. Review the beginning and ending balances on reports to verify that correct ending balances were carried forward as beginning balances on subsequent reports. Review the Treasurer's monthly reports and check them for accuracy. or sponsoring UIL activities during a calendar year. Check addition and subtraction on cash receipts and deposits. and 5. The review must cover the period beginning with the reconciled cash balance from the previous written Financial Report and ending with the reconciled cash balance from the last day of the time period reported by the Booster Club. A District substitute or temporary worker may be a Treasurer or an authorized signer on the Booster Club’s bank account(s) with proper written approval. Checks have been accounted for in the proper sequence (no missing checks).Review Report Information & Formats Suggested Review Committee Guidelines The following suggested guidelines are designed to assist the Booster Club Review Committee in conducting a thorough review of the Booster Club's Financial Report and the financial activity for the applicable school year. athletics. Have the Treasurer prepare the written report of revenues and expenditures (Financial Report) for your Booster Club. Checks have been properly signed. then the beginning retained earnings should equal the prior year’s ending retained earnings balance plus/(minus) net income/(loss) for the current year. Former officers should not remain on the account(s) as authorized signers. Only Booster Clubs that have received an exemption from the Texas Comptroller’s Office are allowed two (2) “one-day. errors. except for some immaterial exceptions Financial Report does not appear proper and correct because of material exception(s) or Financial Report status can not be determined because of material exception(s) 6. which credit funds raised to individual students or parents. After the review is complete. irregularities) Immaterial Exceptions Option A Option B Financial Report appears proper and correct Financial Report appears proper and correct. prizes & awards. if applicable. and other similar situations within a calendar year. attorney fees. tax-free” sales/auctions.11 09/07/2010 Option C Material Exceptions . Determine that the Booster Club has not used individual accounts. The Booster Club should issue a 1099-MISC form to this person since the total paid within the 2010 calendar year is $600. The consultant is hired again in the Fall of 2010-11 for a $300 fee. Example: High-Kick Drill Team Booster Club hires a consultant during the Spring of the 2009-10 school year for a $300 fee. if applicable. Determine that (1) Form 990 or 990-EZ has been filed properly with the IRS for the prior school year if the Club had at least $25. Review the tax-exempt status of the Booster Club to determine that the Club has received and maintained its federal tax-exempt status as a public 501(c)(3) charitable organization or other tax-exempt status by contacting the IRS. In general. or (2) Form 990-N (e-Postcard) has been filed properly with the IRS for the prior school year if the Club had less than $25. prepare the applicable Review Report (only one report type may be used per review: No Exceptions (i. services.000 in gross revenues. Determine which two fund-raisers were chosen to be the “one-day. you may have to issue a 1099-MISC (Miscellaneous Income) for each person to whom you have paid at least $600 in rents..Review Report Information & Formats Obtain proof that all applicable sales tax reports were submitted to the Texas Comptroller’s Office and that the related taxes were paid. tax-free” sales/auctions per calendar year.000 in gross revenues. Verify that 1099s were issued.e. consult with the organization's Treasurer and President (if necessary) to resolve the exception(s). agrees with the period covered in the Financial Report. and signature and the period stated in the report. and Financial Report.Review Report Information & Formats If exceptions are noted during the review. The Review Report includes reviewer’s name. Submit a copy of your Booster Club Financial Report along with the Review Report to the Sponsor. Retain the original written Booster Club Financial Report and the original Booster Club Review Report on file with the Treasurer of the Booster Club. title. The organization's Treasurer and President are responsible for acting upon the recommendations made by the Booster Club Review Committee. If material exceptions have been noted. and the Director of General Administration. The Treasurer is responsible for making any corrections to the records. The Financial Report and the Review Report must be presented at a Booster Club Meeting that includes its general membership by October 31 of each year. 6. the School Principal. prepare recommendations to prevent the future occurrence of these exceptions.12 09/07/2010 . checkbook. 13 09/07/2010 . No exceptions were noted during the review. These members agree that the Financial Report and the related financial activity are proper and correct to the best of their knowledge. 2010 The Review Committee members named below have reviewed the attached Financial Report and related financial activity for the time period of July 1.Review Report Information & Formats Option A Page 1 of 1 (proper & correct with no exceptions) XYZ High School Spirit Booster Club REVIEW COMMITTEE REPORT FOR THE TIME PERIOD July 1. 2010. their title (second column) should be “Member”. Printed Name Officer Title/Member Signature / / Date Printed Name Officer Title/Member Signature / / Date Printed Name Officer Title/Member Signature / / Date Printed Name Officer Title/Member Signature / / Date Note: If a reviewer is a non-officer. 2009 through June 30. in detail. 2009 through June 30. 6. 2010 The Review Committee members named below have reviewed the attached Financial Report and the related financial activity for the time period of July 1. The undocumented expenses totaled $42. 6. The Program Ad Expense account contains three expenses that did not have the related invoices as documentation for the expense. Printed Name Officer Title/Member Signature / / Date Printed Name Officer Title/Member Signature / / Date Printed Name Officer Title/Member Signature / / Date Printed Name Officer Title/Member Signature / / Date Note: If a reviewer is a non-officer. 2009 through June 30. in detail. These members agree that the Financial Report and the related financial activity are proper and correct. their title (second column) should be “Member”. except for the following exceptions: Check #12586 cleared the bank for $25. The check only contained 1 authorized signature.87.20 instead of $2. 2009 through June 30.14 09/07/2010 . 2010.52.Review Report Information & Formats Option B Page 1 of 1 (proper & correct with immaterial exceptions) XYZ High School Spirit Booster Club REVIEW COMMITTEE REPORT FOR THE TIME PERIOD July 1. Check #12688 did not have 2 authorized signatures as required by the Booster Club bylaws. All checks issued should be signed by at least two authorized officers. 2010 The Review Committee members named below have reviewed the attached Financial Report and related financial activity for the time period of July 1.Review Report Information & Formats Option C Page 1 of 2 (not proper or correct due to material exceptions) XYZ High School Spirit Booster Club REVIEW COMMITTEE REPORT FOR THE TIME PERIOD July 1.15 09/07/2010 . due to the following material exceptions: No documentation of cost existed for the 100 new uniforms purchased. For all fund-raisers. 6. such as an invoice. These members agree that the Financial Report and the related financial activity are not proper and correct. Checking and savings accounts were not reconciled during the year. in detail. 2010. Documentation should be kept with the other Booster Club records. the following steps should be taken: Documentation of all expenses. 2009 through June 30. Only one (1) authorized signature appeared on all checks written instead of the two (2) required authorized signatures as indicated in the Booster Club bylaws. No documentation exists showing sales for the Christmas Cards sold to determine whether the amount recorded in the Financial Report is correct. 2009 through June 30. should be received prior to payment of expense. All bank accounts should be reconciled on a monthly basis. To prevent the above exceptions from occurring in the future. a record should be kept of the sales and the money deposited. Review Report Information & Formats Option C Page 2 of 2 (not proper or correct due to material exceptions) XYZ High School Spirit Booster Club REVIEW COMMITTEE REPORT FOR THE TIME PERIOD July 1.16 09/07/2010 . their title (second column) should be “Member”. 2009 through June 30. 2010 Printed Name Officer Title/Member Signature / / Date Printed Name Officer Title/Member Signature / / Date Printed Name Officer Title/Member Signature / / Date Printed Name Officer Title/Member Signature / / Date Note: If a reviewer is a non-officer. 6. Information Included in this section: Day-to-Day Responsibilities Overview Various Subject Areas concerning Day-to-Day Responsibilities 08/02/2008 . The Sponsor is responsible for determining the various activities and trips in which the student group will participate with the approval of the Principal or Administrator. The Booster Club works through the Sponsor to provide assistance for the planned activities of the student group. under the supervision of the Principal or Administrator. Sponsor / Liaison . a Sponsor. this section is dedicated to the many day-to-day issues that face a Booster Club. the pertinent Principal or other appropriate Administrator (if the Booster Club is not located at a school) must approve various activities of both the student group and the related Booster Club. as well as. Analyzing the outcome of each fund-raiser to determine its financial success/failure.The Principal or Administrator is responsible for approving the activities of the student group and some activities of the related Booster Club. Establishing and maintaining money handling procedures. Some of these responsibilities include: Setting up a bank account properly.Day-to-Day Responsibilities Overview So far. or program. financial reporting. Principal or Administrator . Accounting properly for fund-raiser income and expenses. activity. the Sponsor shall approve all student / school-related activities of the Booster Club in accordance with Board Policy GE (Local). In addition. however. the Sponsor should work very closely with the Booster Club and provide guidance to the organization. however. The parents and the Booster Club may provide suggestions about particular activities. the Booster Club does not have the authority to decide the activities or trips in which the student group will participate. and other District requirements. The Sponsor is a District employee who serves as the liaison between the Booster Club and the District. tax-exemption. Support may be as simple as providing refreshments for a particular event or support may be as complex as raising money for an out-of-state competition. Therefore. The main responsibilities of a Booster Club. and Becoming knowledgeable of District policies concerning using District buildings and distributing flyers.1 09/07/2010 . remember the responsibilities of the Booster Club and the pertinent District employees Booster Clubs support a particular student group or program through a Sponsor. Booster Club officers also have day-to-day responsibilities to the club. and a Principal or Administrator are indicated below: Booster Club . the Sponsor is responsible for the final decision with the Principal’s or Administrator’s approval. The Sponsor should not be considered an officer or member of the Booster Club. we’ve covered various aspects of the major decisions that Booster Clubs have to make regarding incorporation. 7. In addition.A designated Sponsor of a student group serves as the liaison between the Booster Club and the District. However. In addressing day-to-day issues. the students they support.A Booster Club is responsible for supporting a student group. Fund-Raising for Individuals or Families Insurance Mailing Address Members Membership Dues Money Handling Procedures a. Safeguarding Money 15. 2. 17. Accounting Procedures Bank Accounts Carry-Over Balances Contributions / Donations a.Day-to-Day Responsibilities These topics are covered alphabetically as follows: 1.2 09/07/2010 . 18. Accounting for a Fund-Raiser d. IRS Regulations c. 6. 3. Quid Pro Quo Contributions Received c. 16. Receiving Money b. Use of Funds Raised 9. 14. Paying and Reporting of Workers (District Employees or Others) Project Prom Incentives Raffles Record Retention Sales Tax 7. Given 5. Board Policy b. 12. 8. Disbursing Money d. 7. 10. 13. Recording and Depositing Money c. 19. Analysis of a Fund-Raiser e. Received b. 4. 11. Facilities Use Financial Aid Guidelines Flyers Fund-Raisers a. Day-to-Day Responsibilities 20. The funds then belong to the members of the student group. According to Board Policy GE (Local). since it provides the “cleanest” procedure to track how the Booster Club spends its revenues. 22. accrual). The Club writes a check to the school where the student group is located. In addition. once the school has received the funds. Funds are deposited into the Club’s bank account. In addition. The Booster Club books and bank accounts should be reconciled monthly. A person’s social security number or the District’s EIN number cannot be used to set up a bank account. such as accounting method (cash vs. Using this method. to be spent at their discretion (under the supervision of the Sponsor).3 09/07/2010 . the Booster Club’s Financial Report would show a clear path of revenues generated and expended exclusively for its purpose. this method reduces the amount of paperwork and responsibility for the Booster Club related to the accounting for the revenues and expenses of the student group. number of authorized signers on the bank account(s) and number of authorized signatures required for each check. 21. the Club tracks who has paid and who still owes money for each event and ensures that all balances are paid in full before the event occurs. The IRS prefers that 501(c)(3) organizations use this method. The Club writes checks to the individual vendors for the expenses related to the student group through their bank account. All accounting and safeguarding of the funds is the responsibility of the school. All accounting and safeguarding of the funds is the responsibility of the Booster Club. All transactions should be recorded in the Booster Club’s financial records. b) Booster Club members raise funds for a student group. Bank Accounts Booster Clubs should set up a bank account with the Booster Club’s EIN number. Funds are deposited into the Club’s bank account. Booster Clubs may provide support to their student group in two manners: a) Booster Club members raise funds for a student group. Accounting Procedures Student Fines and Fees Treasurer’s Report Volunteer Hours Booster Clubs should include written instructions on the recording of accounting transactions in their bylaws. The school deposits the funds into the student group’s activity fund. they collect amounts due from the students for each event/competition/trip in which the student group participates. 7. to support a student group. In addition. To allow the individuals or businesses to deduct these contributions on their tax returns. the Booster Club must send them a copy of the Club’s Determination Letter indicating that the Booster Club is a 501(c)(3) organization. Contributions / Donations a) Received Booster Clubs may receive monetary or non-monetary contributions from individuals or businesses. A District substitute or temporary worker may be a Treasurer or authorized signer on the bank account of a parent organization with written approval from the principal or supervisor where the organization is located and the associate superintendent for business services. The Booster Club may save the money raised over a couple years for a large item or trip. Carry-Over Balances No rule or regulation exists concerning the amount of funds that a booster club can have in their account. The Booster Club should have a minimum amount that would be carried over to the new officers so that they have some money to start the new year. This approval must be requested and received each school year. The Booster Club should spend the funds raised during the year on the students that participated in raising the funds. See Authorization for Signer on PTO & Booster Club Bank Accounts in the Appendix. The written approval must be kept on file with the District’s internal auditor.Day-to-Day Responsibilities A District employee can not be the Treasurer or an authorized signer on the Booster Club's bank account(s). those Booster Clubs that have received a Determination Letter from the IRS granting 501(c)(3) tax exemption are allowed to receive tax-deductible contributions in accordance with IRS Regulation 170. Be sure to inform the membership of why an excess in funds exist.4 09/07/2010 . In addition. the bank account(s) should have at least three authorized signers to allow at least one back-up signer if one of the regular signers is not available. If a Booster Club requires two signatures for check disbursements. 7. Bank account(s) should be reconciled monthly. The District recommends that at least two authorized signatures be required for each check written to assist in establishing good internal controls over check disbursements. Explain how the funds will be used. must provide a written disclosure statement to donors who make a payment. contributions or donations are not tax-deductible. The thank you note may indicate what was contributed or donated. For contributions received. Even though contributions or donations received will ultimately support the student group at a school. REMEMBER 501(c)(3) is the only IRS tax-exempt category that allows contributions to be taxdeductible on the contributor’s tax return. In addition. An example of a quid pro quo contribution is where the donor gives a Booster Club $100 in consideration for a concert ticket valued at $40. b) Quid Pro Quo Contributions Received According to the IRS. the gift is still considered to be a gift to the Booster Club and not to the school or to the District.” in excess of $75. you must inform the individual or business that the contributions or donations are not tax-deductible. The required written disclosure statement must: 1) inform the donor that the amount of the contribution that is deductible for federal income tax purposes is limited to the excess of any money (and the value of any property other than money) contributed by the donor over the value of goods or services provided by the charitable organization. and 7.5 09/07/2010 . Separate payments of $75 or less made at different times of the year for separate fundraising events should not be aggregated for the purposes of the $75 threshold. It is the responsibility of the individual or business that provided the gift to determine the value that they would report on their tax return. the disclosure statement must be furnished. If the gift is monetary. A quid pro quo contribution is a payment made partly as a contribution and partly for goods or services provided to the donor by the charitable organization.Day-to-Day Responsibilities If your Booster Club is not a 501(c)(3) organization. even though the deductible amount does not exceed $75. $60 would be deductible. described as a “quid pro quo contribution. a charitable organization. the estimated value should not be included in the thank you note. If the gift is not monetary. the Booster Club may want to send a thank you note along with a copy of the Determination Letter. Because the donor’s payment (quid pro quo contribution) exceeds $75. In this example. you may indicate the dollar amount. such as a Booster Club that is a 501(c)(3) organization. The Contribution Form may reference this list. there is a penalty of $10 per contribution. the Club should receive a Contribution Acknowledgment Form from either the school or the District. and Records Manager to make arrangements to use the school facilities. A District employee should complete the form and give the original copy to the Booster Club for their records. your school may request the list of contributions from Booster Clubs twice a year. The District tracks contributions received from individuals and entities such as Booster Clubs. and the Booster Club has agreed to pay $35. it is not necessary for the organization to provide another statement when the associated contribution is actually received. This information may assist the District in receiving a more favorable bond rating and in receiving grants.000 that the Booster Club donated is considered a contribution to that particular District student group and should be documented on the Contribution Acknowledgment Form. Therefore.000 of the expense. The trip costs $50.000 per fund-raising event or mailing. The Contribution Acknowledgment Form should be kept with the Booster Club’s financial records. eliminating the need to have a form completed for each contribution. not to exceed $5. For failure to make the required disclosure in connection with a quid pro quo contribution of more than $75. If the disclosure statement is furnished in connection with a particular solicitation. thus. The $35. The form can be used as substantiation to the IRS that the Booster Club is using the funds raised in the manner approved by the IRS as a 501(c)(3) organization. the students must pay the remaining $15.000. Public support of the District is very important in these areas. therefore. A penalty is imposed on charitable organizations that do not meet the disclosure requirements. Example: Yippee Booster Club is funding a portion of a student group’s trip for a competition. Booster Clubs should contact the Facilities Use.Day-to-Day Responsibilities 2) provide the donor with a good-faith estimate of the value of the goods or services that the donor received.000. Flyers. The school may request that a Booster Club provide a list of contributions made to the student group or school. Facilities Use According to Board Policy GKD (Local).6 09/07/2010 . The schools are required to report contributions received at least at the end of each semester. c) Given When the Booster Club contributes directly to the student group. Booster Clubs 7. The charitable organization (Booster Club) must furnish the statement in connection with either the solicitation or the receipt of the quid pro quo contribution. If the criteria are met. An example of Financial Aid Guidelines is included in the Appendix. individuals may not be able to afford to pay the amount owed to participate in a particular event. the criteria should be used consistently for all people. In addition. one student cannot receive a greater benefit than another unless the criteria for financial need discussed below is met. www. The Flyer Distribution Form can be found on the District website.net.net.cfisd. Before any fund-raising activity occurs. The IRS has indicated that a group or club may establish criteria that could be used to determine if a person is in financial need. all members of the student group sponsored are to be treated equally and receive the same opportunity to benefit from the Booster Club’s assistance. Flyers District criteria states that 501(c) tax-exempt organizations may submit flyers to the Facilities Use. and Records Manager for approval.Day-to-Day Responsibilities must provide a copy of their Determination Letter to prove their tax-exempt status before approval for use of any school facilities is granted. under Campuses select Booster Club Guidelines. The criteria should be established in writing prior to a particular situation arising. Financial Aid Guidelines Tax-exempt organizations must benefit a group as a whole instead of benefiting individual members of a group.cfisd. Since Booster Clubs usually assist student groups.cfisd. Therefore. the Booster Club is responsible for all money 7. www.7 09/07/2010 . the group or club could provide the necessary funds to allow the individual to participate. If the activity is a Booster Club fund-raiser. Booster Clubs should decide whether a fund-raiser is a Booster Club fund-raiser (money is deposited directly into the Booster Club’s bank account) or whether it is a school fundraiser (money is deposited directly into the District’s student activity fund account for that student group). under Department select General Administration. Flyers. See Board Policy GKD (Local) and the Application for Building Use on the District website at www. and the criteria should not change every year. Note: “501(c)(3) Number” is the same number as the Employer Identification Number (EIN).net under Departments select General Administration. Fund-Raisers See details below and refer to the High School Fund-Raiser Guidelines that are located on the district website. In some instances. 7. 2. Name of the sponsoring organization. Name and phone number of the person(s) in charge of the fund-raiser. 6. carnival). submit the Permission Request (first 2 pages) of the Fund-Raising Activity Report to your Sponsor by September 30. that person cannot be excluded from having the opportunity to benefit from the fund-raiser and cannot be penalized in any way for choosing not to participate in the fund-raiser.. Therefore. b) IRS Regulations The IRS prohibits tax-exempt organizations from requiring people to participate in fund-raisers.8 09/07/2010 . The Sponsor will submit the revised or new Permission Request to the Principal or designee for approval. Booster Clubs should carefully consider limiting the number of major fund-raising activities involving students. Furthermore. if not already provided on the Permission Request: 1. Name and phone number of the organization’s representative. 4. regardless if a person participates in a fund-raiser and regardless of the amount of revenue raised. For the fund-raisers planned for the current school year. and 7. Booster Clubs may not require an amount be “donated” in lieu of participating in a fund-raiser. Type of fund-raising activity (i. the school is responsible for all money collected and deposited from the fund-raiser. that person cannot be denied the opportunity to receive an equal benefit. Booster Club should submit the following information to the designated faculty sponsor at least 30 days prior to the event. People may choose whether or not to participate in a fund-raiser and may choose whether or not to donate to the Booster Club. If the type of fundraiser changes or if an additional fund-raiser is needed. if the activity is a school fund-raiser. submit a revised or new Permission Request to you Sponsor at least 30 days before the fund-raiser is to be held. Likewise. candy sale. Likewise. Your Sponsor will then submit the Permission Request to the Principal (or designee) for approval. Name and phone number of the person(s) who will be handling the money for the fund-raiser. if a person decides not to participate.e. benefits given by a tax-exempt organization cannot be based on participation in a fund-raiser or based on revenues raised individually. 5. All such activities require both the approval of the Sponsor and School Principal. 3. time(s) and place(s) of the activity.Day-to-Day Responsibilities collected and deposited from the fund-raiser. Purpose of the fund-raiser. a) Guidelines and Policies Board Policy GE (Local) discusses fund-raising regulations. Date(s). Furthermore. 000 . Booster Clubs must benefit the group as a whole.$30). The Treasurer should verify the information provided on the forms.9 09/07/2010 . Of the 20 people participating in the trip. The IRS prohibits the use of individual accounts by Booster Clubs. Now. review your application for recognition of exemption (Form 1023) to determine how funds raised or contributions received by a booster club may be used. (See example above. d) Analysis of Fund-Raiser Booster Clubs should use the Fund-Raising Activity Report to determine the anticipated amount to be raised by a fund-raiser and then to determine if the fund-raiser was a success or failure. each person’s cost for the trip is $970 ($1. The cost of the trip is $20. This type of analysis will help a Booster Club decide whether or not to repeat a particular fund-raiser.) e) Use of Funds Raised According to the Internal Review Service (IRS). not its individual members. each person’s cost for the trip before the fund-raiser is $1. (See the Appendix. This document indicates how the organization had intended to use the funds and the IRS granted the organization their public 501(c)(3) tax-exempt 7.) "Individual accounts" are those accounts used by a Booster Club to credit an individual with revenues raised. Submit the Operating Report and applicable attachment to the Treasurer.000. The Booster Clubs would use these accounts to benefit the individual by offsetting that individual's expenses with the amount credited to the individual from the revenues raised. even though only 10 people participated in the fund-raiser. Therefore.000 for 20 people. complete the Operating Report of the Fund-Raising Activity Report and the applicable attachment. The $600 must be split equally among the 20 people going on the trip. only 10 people participate in the fundraiser and raise a total of $600.Day-to-Day Responsibilities Example: High Spirit Booster Club is having a car wash fund-raiser to help reduce the cost of a trip to Florida for a competition. c) Accounting for a Fund-Raiser Within a week of the projected end date of the fund-raiser. Therefore. each person receives a benefit of $30 ($600 / 20). schools and the District cannot hold fund-raisers for these individuals and families. Even though we want to assist individuals and families in times of need. Gifts to Teachers / Sponsors 3.10 09/07/2010 . These contributions are not tax deductible for income tax purposes. to major illnesses or fires.) This insurance policy would not protect the Booster Club from robbery or outside theft. District staff. whereas. The District recommends contacting the IRS before expending the funds if a question exists as to whether it falls under the use of funds approved by the IRS. The funds raised or donations received by the Booster Club may not be used for the following purposes: 1. Funds may be used for those purposes indicated in the Form 1023 document. Alcoholic Drinks Please note that amounts expended for Booster Club Officers are under stricter guidelines than other members of the Booster Club. End of Year Gifts to Executive Board 4. Gifts to Principals 2. the Booster Club should consider purchasing event insurance when holding a carnival or other similar event. and their families. In addition. one booster club may expend funds for certain items. These events may range from death or injuries in tragic accidents. Insurance The Booster Club should consider purchasing general liability insurance to protect the Booster Club in case of accidents or injuries. Fund-Raisers for Individuals or Families Many heartbreaking events happen in the lives of our students. Proof of a general liability policy is required when District facilities are booked through the Facilities Use Department. If general liability insurance is not purchased.Day-to-Day Responsibilities status based on this information. If funds are used for purposes not indicated in the Form 1023 document. Donations can be made by individuals or businesses by sending checks to the bank or credit union for the particular individual or family. another booster club may not be able to expend funds for the same items. Most of us want to help these individuals or families. 7. Because the application for recognition of exemption may be written differently from one booster club to another. the IRS may question whether the organization should continue as a public 501(c)(3) organization. a fidelity (bond) coverage policy should be considered to protect its funds from embezzlement (internal theft. Raising funds for these situations must be done by the family setting up a special account at a bank or credit union. the Texas Comptroller’s Office. a Booster Club could lose their tax-exempt status. 7. Other individuals may volunteer for the Booster Club. “Members” should be defined in the Booster Club’s bylaws. the Texas Secretary of State. To avoid frequent mailing address changes. Only active members should have the ability to vote or hold an office. the IRS and the Texas Comptroller’s Office recommend that each Booster Club obtain its own post office box (PO Box) or private mailing box (PMB) to be used for official Booster Club mail. you will save time since you will not have to update your address each year to the District.e.. The IRS mails forms and other correspondence to Booster Clubs periodically. Membership dues are associated with the parents being part of the Booster Club and are in no way associated with the expenses related to that parent’s child. thereby also losing their tax-exemption with the State of Texas and possibly face fines and penalties. Booster Clubs receive several important documents from these agencies throughout the year. costume expense). Second. Members Active members should include those individuals that are parents or guardians of a student active in the sponsored program and that are current in their dues. immediately notify the District. trip expense. First. Please understand the importance of maintaining a consistent mailing address for the Booster Club. parents do not have to be members of the Booster Club for their child(ren) to participate in the student group that receives benefits from Booster Club activities. www. however. the Texas Comptroller’s Office. If the related school’s address is used as the Booster Club’s official address. This address and box keys can be given easily to the new officers at the beginning of the year. Membership dues are separate from the expenses incurred by sponsoring a student group (i.e. The District does not recommend using a home address since officers change frequently.gov under Forms and Publications. but can not vote or hold an office.irs. some of these documents could be lost or misplaced.Day-to-Day Responsibilities Mailing Address If the mailing address for the Booster Club changes. and the IRS. the Booster Club should be aware that it may not receive mail in a timely manner when the school is closed (i. Membership Dues Booster Clubs may charge dues to their members (the parents). the IRS.11 09/07/2010 . and your bank as you would if you used someone’s home address.. summer vacation and some holidays). IRS Form 8822 for reporting change of address is available on the IRS website. the Texas Secretary of State. and if the address changes frequently. If these forms are not completed and returned to the IRS within a specific time period. Post-dated checks should not be accepted from any source. or returned due to insufficient funds. Receipts should indicate whether cash. and signature of person receiving the money. or cashier's check was received. date of the receipt. at least two people should count the money.12 09/07/2010 . and the complete check or money order number.Day-to-Day Responsibilities Money-Handling Procedures Money refers to cash. If a copy of the money order or cashier's check is made. and cashier's checks received should be made to assist in recovery of money if these items are lost. c) Disbursing Money Require two signatures on each check. money orders. Deposit slips should be retained and reconciled monthly to the account. money order. brand name of the money order or the issuing bank's name of the cashier's check. 7. checks. the receipt should indicate the total check amount. The following are suggestions related to handling money to assist in ensuring proper accountability. Any checks received should be restrictively endorsed immediately. The person receiving the money should give a receipt to the person delivering the money (both parties should retain their copy of the receipt). Copies or a list of checks. a) Receiving Money The person receiving the money while in the presence of the person turning in the money should count all money received. Receipts should be reconciled with all money turned in and deposited. or cashier’s checks. the inclusion of this additional information on the receipt is not necessary. check. b) Recording and Depositing Money Prior to depositing money. stolen. Do NOT sign blank checks. IMPORTANT If a money order or cashier's check is received. All money should be delivered to the Booster Club Treasurer to deposit funds daily. money orders. Money received should only be deposited in the Booster Club’s account(s). Do not store the records of the money received (i. This protects against embezzlement. Paying and Reporting of Workers (District Employees or Others) Any individual including a District employee who is hired by the Booster Club must be paid directly by the Booster Club and not through the District. advances. determination and recovery of losses would be more difficult. taxes." keep detailed documentation of the expense or use of the funds. loans. The IRS may examine these transactions in more detail than other transactions. The pay appropriately is done through the District through the facilities use charges.. payment of TRS. but not theft. It is best to have the W-9 completed before paying the worker. Do not keep any money in an unlocked drawer. reimbursements. including injury or theft. This includes an individual who is paid $600 or more for “cultural arts events. There are many technical and legal issues that arise if they are paid by the District. Booster Clubs that hold events at district facilities may be charged for staff that must be on hand for the event or to clean up after an event.13 09/07/2010 . Money received and not yet deposited should not be used for purchases. and other benefits. If records and money are stored together and a theft occurs. This can be done by having them complete a W-9 form. Also remember that the Booster Club is responsible for its volunteers and employees during Booster Club events or activities. Issuing checks payable to "Cash" or to the "Sponsor" should be avoided. vehicle. These issues include overtime pay. or other unsecured place. Subsequently. or for any other purpose. and the advancing of district funds that is prohibited by law. If a check must be payable to "Cash" or to the "Sponsor.Day-to-Day Responsibilities d) Safeguarding Money Have people that handle money bonded. "Blank" checks should never be issued and checks should never be presigned. receipts. copies of checks) in the same place as the money. The sequence of check numbers should be accounted for when reconciling the bank statement to the Booster Club's books. use of weighted average hourly rates. check cashing. 7. unlocked filing cabinet. All unused checks should be kept safe and secure at all times. Remember that federal law requires that a Booster Club paying $600 or more to an individual during any calendar year must account for this income through the issuance of a 1099 form.” The Booster Club will need to get social security numbers from all workers. In some situations. These employees are doing work for the District and not the Booster Club.e. the record of the money may be taken along with the money. Project Prom Incentives The Project Prom Booster Clubs may give “bonus bucks.us/consumer/raffle. However.state.” “coupons. Raffle tickets may be sold at the Berry Center or the Exhibit Center. Everything at the after prom event is free. 2. raffle tickets may not be sold on any District school campuses and may not be sold at the Pridgeon or Berry stadiums.” or “points” as an incentive to get parents to participate in project prom events and earn extra chances for their senior to win a prize or prizes at their after prom event. Incentives are used to only have chances to win prizes.shtml. What does the law permit? The Charitable Raffle Enabling Act. schools and the District are not allowed to hold raffles. then these incentives may be used: 1.oag. The following information was downloaded from the Texas Attorney General’s website at www. Raffles By State law. According to the District’s Fund-Raiser Guidelines. 1990. 7. 3.tx. The incentives can be earned for volunteering for various project prom activities including fund-raisers. effective January 1. If the following three (criteria) are met. Financial Secretaries. with certain specified restrictions.Day-to-Day Responsibilities Certain district employees cannot be hired by a Booster Club to perform work that includes the handling of money. The use of incentives is only approved for project prom. and Booster Club Sponsors. Every student attending the after prom event receives some incentives for just attending the event. These positions include Principals.14 09/07/2010 . Booster Clubs may hold raffles if the requirements from the Texas Attorney General’s office are followed. permits "qualified organizations" to hold up to two raffles per calendar year. Principal Secretaries. individual accounts are used normally to offset personal costs for a student for an event or trip. The incentives can not be used towards the purchase of a prom ticket. The incentives are very similar to individual accounts that are not allowed. A prize may not be money. 7. the price of the ticket. Texas lottery tickets may be purchased and offered as prizes. The organization must have each raffle prize in its possession or must post a bond for the full amount of the value of the prize with the county clerk of the county where the raffle will be held. What prizes may be offered? An organization may offer any prize except money. or d) A nonprofit organization that has existed for at least three preceding years. officers or governing body. a qualified organization is: a) A nonprofit association organized primarily for religious purposes that has been in existence in Texas for at least 10 years. even though the tickets' payoff may exceed $50. Each raffle ticket must state the name of the organization holding the raffle. during which it has had a governing body duly elected by its members and is exempt from federal income tax under Section 501(c). What are the restrictions on how the raffle may be conducted? A qualified organization may hold only two raffles per [calendar] year and only one raffle at a time. There is no value limit on prizes donated to the organization. b) A nonprofit volunteer emergency medical service that does not pay its members other than nominal compensation.15 09/07/2010 .000. Is an organization required to register with the State before conducting a raffle? No. does not devote a substantial part of its activities to attempting to influence legislation.000. and the date the raffle prizes will be awarded. a general description of each prize to be awarded that has a value of over $10. If you are considering holding a raffle to benefit an organization. and does not pay its members other than nominal compensation. does not distribute any of its income to its members. and does not participate in any political campaign. If the raffle organizers offer a prize which they have purchased or have given other consideration for.Day-to-Day Responsibilities What is a "qualified organization"? In general. address of the organization or of a named officer of the organization. provides firefighting services. c) A nonprofit volunteer fire department that operates fire fighting equipment. you should check the statute to be sure you qualify. The language of the law is very technical. Raffle tickets may not be advertised state wide or through paid advertisements. Internal Revenue Code. the value of the prize may not exceed $50. What law enforcement authorities may stop an unauthorized raffle? A county attorney. or for selling raffle tickets. call the Attorney General's Consumer Protection Hotline at 1-800-621-0508. Where can I get more information on the requirements for holding a raffle? The law is Chapter 2002. or contact your nearest Attorney General regional office. Conducting such a raffle is a Class A misdemeanor. Participating in an unauthorized raffle is a Class C misdemeanor. An unauthorized raffle is considered gambling under the Texas Penal Code. Texas Codes Annotated. Occupations Code. Only raffles held according to the terms of the Raffle Enabling Act are authorized raffles. Location Austin Dallas El Paso Houston Lubbock McAllen San Antonio Phone Number 512-463-2185 214-969-5310 915-834-5800 713-223-5886 806-747-5238 956-682-4547 210-225-4191 7. you should consult your attorney. How may the proceeds from ticket sales be used? Proceeds from ticket sales must be used only for the charitable purposes of the organization.Day-to-Day Responsibilities Only members of the organization. The organization may not permit a non-member or other unauthorized person to sell or offer to sell raffle tickets. If you have specific questions about the law. Consumer Information For more information. Charitable Raffles. district attorney or the attorney general may bring an action in state court to stop a violation or potential violation of the Charitable Raffle Enabling Act.16 09/07/2010 . No one may be compensated directly or indirectly for organizing or conducting a raffle. may sell tickets. or student organizations recognized by institutions of higher education selling on behalf of the institution. Are there any penalties for conducting or participating in an unauthorized raffle? Yes. Box 12548 Austin. Please call or write for a complaint form.17 09/07/2010 . at www. Application for Recognition of Exemption.tx. The record file should contain at least the following items on a permanent basis: Permanent Records Internal Records Booster Club Registration & Approval Form Articles of Incorporation/Articles of Association Bylaws/Charter/Constitution Minutes from meetings State Records Sales Tax Permit Application Sales Tax Permit Certificate of Incorporation from State of Texas (if applicable) State Sales Tax Exemption Notification State Franchise Tax Exemption Notification (if incorporated) Federal Records Copy of IRS Form SS-4. with all attachments Copy of IRS Form 8718.us.Day-to-Day Responsibilities All consumer complaints must be made in writing.O. Texas 78711–2548 Complaint forms and additional information can also be found in the Consumer Protection section of our website. User Fee for Exempt Organization Determination Letter Request. Write to: Office of the Attorney General P. Some items need to be kept indefinitely while other items only need to be kept for a certain length of time. Record Retention Booster Clubs should establish a record file that is passed to the new officers each year.oag. Application for Employer Identification Number Copy of IRS Form 1023. and copy of check sent to IRS with this form Acknowledgement of Your Request 7.state. In considering the requirements of the Texas State Comptroller’s Office and the IRS. the Texas Comptroller’s Office and the IRS have different retention periods as discussed below. this office has four (4) years from the date the tax becomes due and payable in which to assess the liability. Support Schedule for Advance Ruling Period IRS’s notice granting a permanent exempt status to the organization. penalties. In cases of fraud. This statute of limitations may be extended beyond the four (4) years. In addition. According to the Texas Comptroller’s Office.e. The statute of limitations does not apply when information contained in the sales tax report contains a gross error and the amount of tax due and payable after the error is corrected is 25% or more than the amount initially reported. However. In addition. would allow the retention period to be extended beyond the normal requirement. Booster Clubs must keep each annual information return (i. and interest at anytime.Day-to-Day Responsibilities Determination Letter Copy of IRS Form 8734. According to the IRS. or Form 990-N) for 3 years from the date the form is required to be filed or from the date the form is actually filed. if an agreement is made in writing between the Texas Comptroller’s Office and the Booster Club.. such as fraud. whichever is later. if applicable For non-permanent records.18 09/07/2010 . the IRS could request information prior to the 3-year period discussed above. if fraud is suspected or if returns have not been filed as applicable. certain circumstances. or if the sales tax returns have not been filed. Form 990-EZ. other exceptions to the statute of limitations may apply. Form 990. the statute of limitations does not apply and the Texas Comptroller’s office may assess and collect taxes. the record file should contain at least the following items for a minimum of the current year and the four (4) previous years: Non-permanent Records Internal Records Financial Reports and Review Committee Reports All financial backup including checkbook and banks records Information related to contributions received by a Booster Club from individuals or businesses Financial Aid Guidelines State Records Sales Tax Forms Filed Copy of correspondence with the Texas Secretary of State and the Texas Comptroller’s Office 7. 40 Taxable Sales $932. however.40 x .60 = $1. Including sales tax in the price and having the price an even amount such as $10. or tax returns. you need to do the following calculation to determine your correct amount of sales and sales tax: TOTAL SALES AMOUNT DIVIDED BY (1.60 Sales Tax $932.0725.19 09/07/2010 .50 is an easy method to use.000 including tax. Sales Tax For fund-raisers in which sales tax must be collected. 990-EZ. you must provide complete copies of the material.0 + TAX RATE) = SALES AMOUNT EXCLUDING TAX EXAMPLE: Total sales are $1.000 : 1. the Booster Club can sell items at a certain price plus sales tax or sales tax may be included in the price. If your sales price included sales tax.00 Gross Amount Collected 7. you need to be careful to avoid paying sales tax on sales tax. IMPORTANT According to IRS disclosure requirements. if someone requests to view any of your tax applications. You may charge a nominal fee for copying.Day-to-Day Responsibilities Federal Records Copy of IRS Forms 990. $1.20 per page plus postage. forms filed.0725 = $932. Tax rate is 7 ¼ % or .00 or $10. or 990-N filed Copy of correspondence with the IRS Before discarding any records. confirm with the Texas Comptroller’s Office and the IRS that your organization is in good-standing and that no open items or issues exist related to the time period involving the records that you would like to discard.000. not to exceed the current governmental rate of $.0725 = $67.40 + $67. 20 09/07/2010 . they must do so independently from the District and school. but never paid for it. the Treasurer must present a written Treasurer’s report of the money received and expended since the last report. If a Booster Club wishes to pursue recovery of these amounts.cfisd. and the State of Texas requires public school districts to facilitate parental involvement in their children’s education. go to the District’s website at www. Volunteer hours can be reported on-line. one of students in the group they support. or in the classroom. whether it is at home. in the community. To report Volunteer hours. Since these amounts relate to Booster Club activities. program continuation. Trusty received the merchandise. For example. Student Fines and Fees List Booster Clubs may have students or parents who do not submit money for fund-raisers or expenses. The Booster Club may pursue trying to recover the money or merchandise from Trusty. select Partners in Education. please take a few moments to report the many hours your Booster Club has dedicated to our students. However. Example: High Spirit Booster Club held a catalog fund-raiser and $400 is still owed to the Booster Club by Trusty Smith. they may not contact the school to include the $400 on the school’s Student Fines and Fees List as an amount owed by Jane Smith to the school. the father of Jane Smith. Volunteer Hours The District values the diversity of volunteer activity in the community. many grants and federally funded programs require an accurate reflection of volunteer hours.net. A posted sign or a statement on a receipt indicating that tax is included may be used. and communication. they cannot be placed on the school’s Student Fines and Fees List.Day-to-Day Responsibilities Your customer must be informed that you are charging sales tax. 7. under Departments. Therefore. Accounting for such volunteer hours is essential since it impacts issues such as funding. Treasurer’s Report At each Booster Club meeting that includes its general membership. resulting in amounts owed to the Booster Club. 19 A1.3 A1.1 B2.20 A1.3 Forms Texas Sales and Use Tax Exemption Certification Texas Sales and Use Tax Resale Certificate C3.1 A1.7 A1.2 Page 1 of 2 11/02/2009 .21 District Examples Contribution Acknowledgment Form B1.1 Forms Authorization for Signer on PTO & Booster Club Bank Accounts Fund-Raising Activity Report B2.Page Booster Clubs Examples Articles of Association Articles of Incorporation Bylaws of an Association Bylaws of a Corporation Financial Aid Guidelines Notice to the Bank of Changes in Authorized Account Signers Notice to the Texas Comptroller of Changes in Officers/Board Members Notice to the IRS of Changes in Officers/Board Members A1.2 C2.8 Examples Approval of Articles of Incorporation Certificate of Incorporation Texas Sales and Use Tax Permit C2.1 C3.1 C1.2 State of Texas Helpful Information Texas Sales Tax – Frequently Asked Questions Texas State Tax Exemptions for Nonprofit Organizations Sales & Use Tax Bulletin – School Fundraisers and Texas Sales Tax C1.16 A1.12 A1.6 C1.1 C2. 2 D2.4 Examples Employer Identification Number (EIN) Assignment Notice Acknowledgement of Your Application Form 1023 – Application for Recognition of Exemption Determination Letter D2.3 D1.2 D1.1 D2.Page Internal Revenue Service (IRS) Helpful Information Application for Recognition of Exemption – Section 501(c)(3) Taxpayer Tips: Common Errors Made by Exempt Organizations – Tips When Filing Form 990 Taxpayer Tips: Common Errors Made by Exempt Organizations – Tips When Filing Form 990-EZ Top Ten Reasons for Delays in Processing Exempt Organization Applications D1.30 Page 2 of 2 11/02/2009 .1 D1.3 D2. . and to apply the income and principle thereof as determined by the Board of Directors and Choir Director exclusively for charitable and educational purposes.1 09/07/2010 . the Association is authorized to receive property by gift or bequest and to invest and reinvest the same. TX 00025-1225 ARTICLE III The period of its duration is perpetual. It shall provide financial support to the choir as deemed necessary by the Choir Director and provide assistance for choir activities as requested by the Choir Director. TX 77358 A1. ARTICLE IV The purpose of this Association is to assist the directors of the Silent Night Choir in reaching the choir program goals.ARTICLES OF ASSOCIATION Silent Night Choir Booster Club Articles of Association of the undersigned.. a majority of whom are citizens of the United States. TX 77358 3978 Manger Way. TX Street address: Silent Night Choir Booster Club PO Box 1225 Jingle Bells. ARTICLE V The names and addresses of the persons who shall serve as directors of the Silent Night Choir Booster Club until their successors have been elected and qualified. desiring to form a Non-Profit Corporation under the non-profit association do hereby certify: ARTICLE I The name of the Association is: Silent Night Choir Booster Club ARTICLE II The principal office of the Association is located in the city of Jingle Bells. In furtherance of these purposes. Jingle Bells. to engage in any and all lawful activities incidental thereto as restricted herein. Jingle Bells. are as follows: Joe Soeuff Fred Frosty Sann Tababe Ruddy Rednose 2007-08 President 2007-08 Vice President 2007-08 Treasurer 2007-08 Secretary 1025 Snowlane. TX 77359 5589 Reindeer Run. Jingle Bells. These purposes are exclusively charitable and educational with the meaning of section 501 (c)(3) of the Internal Revenue Code of 1986 as now in effect or as it may hereafter be amended. Jingle Bells. The Activities of the organization shall not conflict with the policies of the Cypress Fairbanks Independent School District and shall be sanctioned by school officials. TX 77359 8857 Freezing Blvd. 2 09/07/2010 . The distribution shall be made by the Board of Directors. In no event. officers or other private persons. or the corresponding section of any future federal tax code. the assets. or otherwise attempting to influence legislation. shall such distribution inure to any person who has a personal and private interest in the activities of the association. Joe Soeuff Fred Frosty Sann Tababe Ruddy Rednose 2007-08 President 2007-08 Vice President 2007-08 Treasurer 2007-08 Secretary A1. the undersigned constituting the Executive Board of the Association. or the corresponding section of any future federal tax code. or intervene in (including the publishing or distribution of statements) any political campaign on behalf of or in opposition to any candidate of public office. after payment of just debts. however. IN WITNESS WHEREOF. or (b) by an association. provided.ARTICLE VI No part of the net earnings of the association shall inure to the benefit of or be distributable to its members. the association shall not carry on any other activities not permitted to be carried on (a) by an association exempt from federal income tax under section 501 (c)(3) of the Internal Revenue Code. for the purpose of forming this association under the laws of the State of Texas. shall be distributed exclusively for the purposes set out in Article IV and to organizations organized and operated exclusively for such purposes such as a local government entity or an organization exempt from federal income taxation under section 501(c)(3) of the Internal Revenue Code of 1986. No substantial part of the activities of the association shall be the carrying on of propaganda. we. contributions to which are deductible under section 170(c)(2) of the Internal Revenue Code. and the association shall not participate in. or pursuant to court order. that no amendment shall be made which would alter the purposes for which the association is organized as set forth in Article IV. or member. or the corresponding provisions of any subsequent revenue law or laws. incorporator. director. trustees. or would cause any benefit to inure to any officer. except that the association shall be authorized and empowered to pay reasonable compensation for services rendered and to make payments and distributions in furtherance of the purposes set forth in Article IV hereof. ARTICLE VIII In the event of voluntary or involuntary dissolution of this association. Notwithstanding any other provision of these articles. however. 2007. ARTICLE VII These Articles of Association may be amended from time to time as provided by the statute of the bylaws of the association. have executed these Articles of Association on the 26th day of August. as amended from time to time. FILED in the Office of the Secretary of State of Texas Jan 25 2008 ARTICLES OF INCORPORATION ABC HIGH SCHOOL BOOSTER CLUB The undersigned natural person over the age of eighteen (18), acting as an incorporator, adopt the following Articles of Incorporation of ABC High School Booster Club: ARTICLE ONE, NAME The name of the corporation is ABC HIGH SCHOOL BOOSTER CLUB. Corporations Section Texas Secretary of State’s stamp of filing date ARTICLE TWO, NON-PROFIT CORPORATION The corporation is a non-profit corporation. When it dissolves, all of its assets will be distributed to the State of Texas or an organization exempt from taxes under the Internal Revenue Code Section 501(c)(3) for one or more purposes exempt under the Texas franchise tax. ARTICLE THREE, DURATION The duration of the corporation is perpetual. ARTICLE FOUR, PURPOSES The purposes for organizing the Corporation are to perform charitable activities within the meaning of Internal Revenue Code Section 501(c)(3) in Texas Tax Code Section 11. 18(c). ARTICLE FIVE, POWERS Except as these Articles otherwise provide, the Corporation has all of the powers provided in the Texas Non-Profit Corporation Act. Moreover, the Corporation has all implied powers necessary and proper to carry out its express powers. The Corporation may reasonably compensate directors or officers for services rendered to or for the Corporation in furtherance of one or more of its purposes. ARTICLE SIX, RESTRICTIONS AND REQUIREMENTS The Corporation may not pay dividends or other corporate income to its directors or officers, or otherwise accrue distributable profits, or permit the realization of private gain. The Corporation may not take any action prohibited by the Texas Non-Profit Corporation Act. The Corporation may not take any action that would be inconsistent with the requirements for a tax exemption under Internal Revenue Code Section 501(c)(3), and related regulations, rulings, and procedures. Nor may it take any action that would be inconsistent with the requirements for receiving tax deductible charitable contributions under Internal Revenue Code Section 170(c)(2) and any related regulations, rulings, and procedures. Regardless of any other provision in these Articles of Incorporation, or state law, the Corporation may not: 1. Engage in activities or use its assets in manners that do not further one or more exempt purposes as set forth in these Articles and defined by the Internal Code and related regulations, rulings, and procedures except to an insubstantial degree. Serve a private interest other than one clearly incidental to an overriding public interest. 2. A1.3 09/07/2010 3. Devote more than an insubstantial part of its activities to attempting to influence legislation by propaganda or otherwise, except as provided by the Internal Revenue Code and related regulations, rulings and procedures. Participate in or intervene in any political campaign on behalf of or in opposition to any candidate for public office. The prohibited activities include publishing or distributing statements and any other direct or indirect campaign activities. Have objectives characterizing it as an "action organization" as defined by the Internal Revenue Code and related regulations, rulings, and procedures. Distribute its assets on dissolution other than for one or more exempt purposes. On dissolution, the Corporation's assets will be distributed a local governmental entity, to the state government for a public purpose, or to an organization exempt from taxes under Internal Revenue Code Section 501(c)(3) to be used to accomplish the general purposes for which the Corporation was organized. Permit any part of the Corporation's net earnings to enure to the benefit of any private share holder or member of the Corporation or any private individual. Carry on an unrelated trade or business, except as a secondary purpose related to the Corporation's primary, exempt purposes. 4. 5. 6. 7. 8. ARTICLE SEVEN, MEMBERSHIP The Corporation will have one or more classes of members as provided in the Bylaws. ARTICLE EIGHT, REGISTERED OFFICE AND AGENT The street address of the Corporation's initial registered office is 4548 Another Avenue, Cypress, Harris County, Texas. The name of the initial registered agent at the office is John Black, 4548 Another Avenue, Cypress, Harris County, Texas. ARTICLE NINE, MANAGING BODY OF CORPORATION The management of the Corporation is vested in its Board of Directors and such committees that the Board may from time to time, establish. The bylaws provide the qualifications, manner of selection, duties, terms, and other matters relating to the Board of Directors. The initial Board of Directors will consist of three (3) persons: NAMES Jane Doe ADDRESSES 2334 Someplace Road Houston, TX 77777 557 Imsolost Avenue Katy, TX 77888 100000 Andstillgoing Road Houston, TX 77999 Katy Smith Mike Crosoft A1.4 09/07/2010 The number of directors may be increased or decreased by amending the Bylaws. The number of directors may not be decreased to fewer than three. ARTICLE TEN, LMTATION ON LIABTLITY OF DIRECTORS A Director is not liable to the Corporation or members for monetary damages for an act or omission in the Director's capacity as Director except as otherwise provided by Texas statute. ARTICLE ELEVEN, INDEMNIFICATION The Corporation may indemnify a person who was, is, or is threatened to be made a named defendant or respondent in litigation or other proceedings because the person is or was a Director or other person related to the Corporation as provided by the provisions of the Texas Non-Profit Corporation Act governing indemnification. As the Bylaws provide, the Board of Directors may define the requirements and limitations for the Corporation to indemnify directors, officers or others related to the Corporation. ARTICLE TWELVE, CONSTRUCTION All references in these Articles to statutes, regulations, or other sources of legal authority refer to the authority cited or their successors, as they may be amended from time to time. ARTICLE THIRTEEN, INCORPORATORS The name and address of the incorporator is TU EXPENSIVE a licensed attorney in the State of Texas, 999 Richman Road, Houston, TX 79999. ARTICLE FOURTEEN, ACTION BY WRITTEN CONSENT Action may be taken by use of signed written consents by the number of members, directors, or committee members whose vote would be necessary to take action at a meeting at which all such persons entitled to vote were present and voted. Each written consent must bear the date of signature of each person signing it. A consent signed by fewer than all of the member, directors, or committee members is not effective to take the intended action unless consents, signed by the required number of persons, are delivered to the Corporation within sixty (60) days after the date of the earliest dated consent delivered to the Corporation. Delivery must be made by hand, or by certified or registered mail, return receipt requested. The delivery may be made to the Corporation's registered office, registered agent, principal place of business, transfer agent, registrar, exchange agent, or an officer or agent having custody of books in which the relevant proceedings are recorded. If delivery is made to the Corporation's principal place of business, the consent must be addressed to the president or principal executive officer. The Corporation will give prompt notice of the action taken to persons who do not sign consents. If the action requires documents to be filed with the Secretary of State, the filed documents will state that the written consent procedures have been properly followed. A telegram, telex, cablegram, or similar transmission by a member, or director, or committee member, or photographic, facsimile, or similar reproduction of the signed writing is to be regarded as being signed by the member, director, or committee member. Tu Expensive, Incorporator THE STATE OF TEXAS A1.5 09/07/2010 declared that he is the person who signed the foregoing document as incorporator.6 09/07/2010 . and that the statements contained therein are true. 2008. do hereby certify that on May 31.COUNTY OF HARRIS I. a Notary Public for the state of Texas. TU EXPENSIVE . Notary Public in and for the State of Texas A1. who being by me first duly sworn. personally appeared before me. Sec. the parent must have a student that is currently active in the program. No substantial part of the activities of the organization shall be the carrying on of propaganda. as said Court shall determine. except that the organization shall be authorized and empowered to pay reasonable compensation for services rendered and to make payments and distributions in furtherance of the purposes set forth in the paragraph above. officers.MEMBERSHIP DUES Membership becomes automatic upon payment of dues. or intervene in (including the publishing or distribution of statements) any political campaign on behalf of any candidate for public office. the making of distributions to organizations that qualify as exempt organizations under section 501 ( c ) (3) of the Internal Revenue Code of 1954 (or the corresponding provision of any future United States Internal Revenue Law). and the organization shall not participate in. This organization is organized to support the activities of the drill team members. and scientific purposes. Anyone else may be a member. its members. Notwithstanding any other provision of these bylaws. exclusively for such purposes or to such organization or organizations.7 08/01/2008 .OBJECTIVES Sec. However.. including. dispose of all of the assets of the organization exclusively for the purposes of the organization in such manner. 1. religious. 2. contributions to which are deductible under section 170 (c) (2) of the Internal Revenue Code of 1954 (or the corresponding provision of any future United States Internal Revenue Law). Upon the dissolution of the organization. or be distributable to.YEE-HAW BOOSTER CLUB ASSOCIATION BYLAWS AMENDED: November 28. A1. to have voting rights in the organization. for such purposes. or scientific purposes as shall at the time qualify as an exempt organization or organizations under section 501 ( c) (3) of the Internal Revenue Code of 1954 (or the corresponding provision of any future United States Internal Revenue Law). or otherwise attempting to influence legislation. the Executive Committee shall. which are organized and operated exclusively for such purposes. the organization shall not carry on any other activities not permitted to be carried on (a) by an organization exempt from Federal Income tax under section 501 (c) (3) of the Internal Revenue Code of 1954 (or the corresponding provision of any future United States Internal Revenue Law) or (b) by an organization. educational. educational. religious. after paying or making provision for the payment of all of the liabilities of the organization. This organization is organized exclusively for charitable. ARTICLE III . ARTICLE II . 2007 ARTICLE I . trustees. but only as a volunteer without voting rights. or other private persons. or to such organization or organizations organized and operated exclusively for charitable. Any such assets not so disposed of shall be disposed of by the Court of Common Pleas of the county in which the principal office of the organization is then located.NAME The name of this organization shall be the YEE-HAW BOOSTER CLUB. as the Executive Committee shall determine. No part of the net earnings of the corporation shall inure to the benefit of. The 2nd Vice-President shall be responsible for procuring chaperones for all football games. Two of the appointed members shall be from the Executive Committee and three from the membership at large. Nominations from the floor may be made provided prior consent is obtained from the prospective nominee and these nominations are made at the time the nominating committee presents its slate to the membership. All officers are volunteers. unless there are nominations from the floor in which case the vote shall be by ballot. at his or her discretion. these funds under guidelines listed below. or other events which take place. including one sophomore class representative. no officer shall incur any personal liability as a result of serving on this board. 6. 1. No person shall serve in the same office more that one consecutive year unless it is decided and voted upon to determine that it is the best interest of the club. 5. and none are paid any compensation for services performed. Term of the office herein is defined as the period of May of current year until May of the following year at installation of Booster Club officers.OFFICERS AND THEIR ELECTION Sec. contest trips. Sec. and five other members appointed by the President. 1. Sec. 7. the Principal. A vacancy occurring in an office shall be filled by a vote of the executive board. The President shall preside at all meetings of the club.ARTICLE IV . ARTICLE V . The 3rd Vice-President shall be responsible for organizing all fund raising projects. Secretary. and one senior class representative. 4. Sec. 3rd Vice-President. 2nd Vice-President. Sec. 5. A1. The Treasurer(s) shall be custodian of all Booster Club funds and all disbursements of Sec. Executive Board. 2. The Secretary shall keep a record of all meetings of the club and of the Executive Board meetings and shall conduct the general correspondence of the club. Nominations of officers shall be presented to the membership by a nomination committee at least one month prior to the election of the officers. Treasurer(s) and Parliamentarian. 6. 3. Sec.8 08/01/2008 . 2. The Executive Board of this club shall consist of the following officers: President. As such. the Yee-Haw Director. The 1st Vice-President shall act as aid to the President and shall perform duties of the President in the absence of that officer and serve as chairperson of membership and special events. Sec. Sec. 4. one junior class representative. Officers shall be elected by voice. Sec. These officers shall be elected annually in April and assume duty at the installation of officers at the May Booster Club meeting. and the Executive Committee and shall be a member ex-officio of all committees and shall perform other duties usually pertaining to the office. Sec. Sec. 3.DUTIES OF OFFICERS Sec. The nomination committee shall consist of the club President as chairperson. 1st Vice-President. 1. to approve the plans of work of the standing committee chairpersons. the Booster Club shall have an organizational committee conduct an annual review of the organization's revenues/expenditures for the prior year. Sec. with a financial statement given at the May meeting. Receipts and "Request for Funds" forms must be presented to the Treasurer for reimbursement. and Treasurer(s) of the Booster Club. ARTICLE VII . A1. 7.MEETINGS Sec. and the Treasurer shall be in charge of tabulating money at the end of each fundraiser. Special meetings of the Executive Committee may be called by the President or by a majority of the committee's members. The Parliamentarian will insure that all meetings are conducted according to Robert's Rules of Order. Its duties shall be to transact necessary business between club meetings and such other business as may be referred to it by the club. Expenditures in excess of budgeted amounts will not be expended without board approval. 4. President of the Booster Club. Sec.1. 2. A copy of the report for the prior year will be submitted to the Principal's office and to the Internal Audit Department by September 1 of each year. shall constitute a quorum.9 08/01/2008 . The following signatures are to be maintained on the file at the financial institution in which the checking account is located: a. No cash advances are allowed unless the item has already been budgeted for and funds are available. 5. and to present reports at the regular meetings. 3. the project chairperson. The Treasurer will be required to keep current and accurate ledgers indicating all accounts payable. At the end of his/her term. b. one of whom shall be authorized to open and preside over the meeting. ARTICLE VI . 2. A financial disposition of Booster Club funds shall be presented monthly. Fifty percent (50%) of the voting membership of the Booster Club. The 3rd Vice-President (fund raising chairperson). All checks are to have these two (2) signatures. Duplicate receipts will be issued by the Treasurer with the Treasurer retaining the original and a copy given to the 3rd Vice-President.EXECUTIVE COMMITTEE The Executive Committee shall consist of the officers of the club and the Yee-Haw Director. 6. A regular meeting of the Booster Club shall be held on the second Tuesday night of each school month unless otherwise provided by the club or the Executive Board with a seven-day notice. Jazz Camp. provided notice of proposed amendment shall be given at the previous regular meeting. The Booster Club has no authority to direct the Director. A1. The chairpersons of the standing committees shall be appointed or selected by the newly elected Executive Board. method of earning letters. etc. brother). sister.10 08/01/2008 . Christmas Wrap. in any of her duties. The schedule of contest.AMENDMENTS These bylaws may be amended at any regular meeting of the organization by two-thirds vote of the designated quorum.ARTICLE VIII . Their term of office shall be for one year. father. awards offices and all other criteria dealing with interschool programs are under the jurisdiction of the Director and the school administration.: Car Wash. Cards are to be sent in all other instances.e. rules of participation.PARLIAMENTARY AUTHORITY All meetings shall be governed by Robert's Rules of Order in cases where they are applicable and are not inconsistent with these by-laws. an employee of Totally Country High School. ARTICLE XI . Standing Committees Scholarship Father/Daughter Social Photo Historian Props Publicity Standing Committees (continued) Formal Spring Show Fundraising (i. Candy Sales. Banquet Mother/Daughter Luncheon Parent Socials Sunshine (Thank Yous) Costumes/ Sewing Telephone ARTICLE IX .) P.STANDING RULES Flowers or memorials shall be sent in case of death of a Yee-Haw member or immediate family member (mother.STANDING COMMITTEES There shall be such standing committees created by the Executive Committee as may be required to promote the objectives and purposes of the club.E.A. ARTICLE X .C. All Booster Club projects must support the philosophy of the school administration. VOTING Membership in the Yee-Haw Booster Club is by family with one vote per family. or other necessary items required for participation on drill team and not being provided for drill team members by the high school or school district. ARTICLE XIII . only cashier's check or money order. 2. and drill team director shall decide on the amount due from drill team members in connection with a social event. Social events will be incidental to the purpose of fund raising activities. ARTICLE XV . 1. props.ACADEMIC An academic scholarship will be given to needy or deserving Yee-Haws as the funds are available. contest fees. 1. and drill team members are required to pay for participation in connection with same.ARTICLE XII . The party issuing an insufficient funds check must reimburse the Booster Club for the amount of the check plus any applicable fees within thirty (30) days of notification of insufficient funds. The amount to be awarded shall be determined by the Executive Board when creating the annual budget. ARTICLE XIV .RETURN CHECK POLICY Sec. board members. contest travel expenses.AWARDS Attendance awards shall be given only to the daughters of members who have missed no more than one (1) meeting during the year. no further checks will be accepted.FUNDRAISING Sec. The scholarship recipient(s) will be decided by the Totally Country Scholarship Committee.11 08/01/2008 . Sec. uniforms. shoes. All funds raised shall be for the purpose of supporting drill team activities by providing funds to cover costumes. A1. scholarships. Sec. 2. Committee chairpersons. All sales campaigns must be cleared through the Yee-Haw Director and the Totally Country Principal. leotards. ARTICLE XVI . refreshments. If more than one insufficient funds check is presented to the Booster Club by the same party. BYLAWS XYZ HIGH SCHOOL BOOSTER CLUB, INC. ARTICLE I 1.1 Name. The name of this corporation is XYZ HIGH SCHOOL BOOSTER CLUB, INC. ("Corporation") ARTICLE II 2.1 Purposes. The Corporation is organized exclusively for educational and charitable purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code of 1986, as amended ("Code"). The purpose or purposes for which the Corporation is organized are: a. To sponsor and promote a chemical free prom night for graduating seniors of XYZ High School; b. To educate high school students and the public about the benefits to themselves and others of a chemical free celebration of prom night; c. To solicit and disburse funds to be used to support the above purposes. ARTICLE III 3.1 Principal Office. The principal office of the Corporation shall be located in Houston, Harris County, Texas. 3.2 Registered Office and Registered Agent. The Corporation shall have and contiguously maintain in the State of Texas a registered agent whose office is identical with such registered office, as required by the Texas Non-Profit Corporation Act. The registered office may be, but need not be identical with the principal office of the Corporation, and the address of the registered office may be changed from time to time by the Board of Directors. ARTICLE IV 4.1 Administration. The Purposes of the Corporation shall be carried out through conferences, committees and projects. The Corporation shall not seek to direct the administrative activities of the school or to control their policies. 4.2 Non-Commercial. The Corporation shall be non-commercial, non-sectarian and nonpartisan. No commercial enterprise or any candidates shall be endorsed by it. The name of the Corporation or its officers in their official capacities shall not be used in any connection with a commercial concern or with any partisan interest or for any purpose other than the regular work of the Corporation. ARTICLE V 5.1 Membership. The Corporation will have no members. The Corporation may, nevertheless, use the term "Members" to designate those persons having such privileges and status as the Board of Directors may determine. A1.12 08/01/2008 5.2 Membership becomes automatic upon payment of dues. However, to have voting rights in the organization, the parent must have a student that is currently active in the program. Anyone else may be a member, but only as a volunteer without voting rights. ARTICLE VI 6. 1 General Powers. The affairs of the Corporation shall be managed by its Board of Directors. 6.2 Number and Qualifications. The Board of Directors shall consist of the individuals who hold the offices of President, Vice President, Treasurer and Secretary of the Corporation. Membership in the Board of Directors shall be held exclusively and indefinitely by the individuals holding such offices. The initial Members of the Board of Directors are as follows: NAME Joe Smith Jane Doe John Black Mary Smithe ADDRESS 222 Some Road, Houston, TX 77777 724 Aroad Avenue, Houston, TX 77777 345 Another Avenue, Houston, TX 77777 889 Deadend Road, Houston, TX 77777 6.3 Duties. The duties of the Board of Directors shall be to transact necessary business. 6.4 Quorum. A majority of the Board of Directors shall constitute a quorum for the transaction of business at any meeting of the Board; but if less than a majority of the directors are present at the meeting, a majority of the Directors present may adjourn the meeting from time to time without further notice. 6.5 Manner of Acting. The act of a majority of the Directors present at a meeting at which a quorum is present shall be the act of the Board of Directors, unless the act of a greater number is required by law or by these by-laws. 6.6 Resolutions. No resolutions may be adopted except by the Board of Directors. 6.7 Informal Action by Directors. Any action required by law to be taken at a meeting of the Board of Directors, or any action which may be taken at a meeting of the Board of Directors, may be taken without a meeting if a consent in writing setting forth the action so taken shall be signed by all of the directors. ARTICLE VII OFFICERS 7.1 Officers. The officers of the Corporation shall be a President, Vice President, Secretary and Treasurer. Officers shall take office at the first regular meeting and serve for a term of one year or until their successors are installed. 7.2 Designation of Officers. The officers of the Corporation shall be elected annually at the first regular meeting. Each officer shall hold office until his successor shall have been duly elected and shall have been qualified, or until his death, or until he shall resign or shall have been removed in the manner hereinafter provided. A1.13 08/01/2008 7.3 Vacancies. Vacancies occurring during the term of office shall be filled by the Board of Directors. 7.4 President. The President shall be the principal executive officer of the Corporation and shall in general supervise and control all of the business and affairs of the Corporation. He or she shall preside at all meetings of the Corporation, the Board of Directors, and shall be exofficio member of all committees. He or she may sign, with the Secretary or any other proper officer of the Corporation authorized by the Board of Directors, any contracts or other instruments which the Board of Directors has authorized to be executed, except in cases where the signing and execution thereof shall be expressly delegated by the Board of Directors or by these By-laws or by statute to some other officer or agent of the Corporation; and in general he or she shall perform all duties incident to the office of President and such other duties as may be prescribed by the Board of Directors from time to time. 7.6 Vice President. In the absence of the President or in the event of his or her inability or refusal to act, the Vice President shall perform the duties of the President, and when so acting shall have all the powers of and be subject to all the restrictions upon the President. The Vice President shall be the Chairman of the Fundraising Committee. 7.7 Treasurer. If required by the Board of Directors, the Treasurer shall give a bond for the faithful discharge of his or her duties in such sum and with such surety or sureties as the Board of Directors shall determine. He or she shall have charge and custody of and be responsible for all funds and securities of the Corporation; deposit all such moneys in the name of the Corporation in such banks, trust companies, or other depositories as shall be selected in accordance with these By-laws; and in general perform all the duties incident to the office of Treasurer and such other duties as from time to time may be assigned to him or her by the President or by the Board of Directors. The Treasurer shall present a statement of account at every meeting of the Corporation and at other times when requested by the Board of Directors and shall make a report at the Spring and Fall meetings. The Treasurer's books shall be subject to audit annually by a committee of three members appointed by the President at the spring meeting. The Treasurer's books shall be closed by July 31 of the fiscal year (end of the fiscal year). 7.8 Secretary. The Secretary shall keep the minutes of the meetings of the members of the Board of Directors in one or more books provided for that purpose; give all notices in accordance with the provisions of these By-laws or as required by law; be custodian of the corporate records; keep a register of the address of each member which shall be furnished to the Secretary by each member; and, in general, perform all duties incident to the office of Secretary and such other duties as from time to time may be assigned to him or her by the President or by the Board of Directors. ARTICLE VIII CONTRACTS, CHECKS, DEPOSITS AND FUNDS 8.1 Contracts. The Board of Directors may authorize any officer or officers, agent or agents of the Corporation, in addition to the officers so authorized by these By-laws, to enter into contract or execute and deliver any instrument in name of and on behalf of the Corporation. Such authority may be general or confined to specific instances. All expenditures must be approved by the Board of Directors before they are made. A1.14 08/01/2008 trust companies. Except as provided in these Bylaws. notes. the Corporation shall remit $500 to next year's Project Prom.3 Deposits: All funds of the Corporation shall be deposited from time to tome to the credit of the Corporation in such banks. Dated: / / Joe Smith Dated: _____/_____/_____ Jane Doe Dated: _____/_____/_____ Mary Smithe A1. At the close of the fiscal year in 1999.1 Amendments.000 for use for the succeeding Project Prom.8. All Checks. 8. Board of Directors.15 08/01/2008 . at the close of the fiscal year. ARTICLE XI RULES OF ORDER 11.4 Gifts. All books and records of the Corporation may be inspected by any member or his or her agent or attorney for any proper purpose at any reasonable time.2 Fiscal Year. ADOPTED IN WITNESS WHEREOF. the rules contained in Roberts Rules of Order Newly Revised shall govern the Corporation operation. following notices of the proposed amendment at a previous regular or special meeting of the Board of Directors. ARTICLE X AMENDMENTS 10. and committees having any of the authority of the Board of Directors. drafts. 8.1 Rules of Order. bequest or devise for the general purposes or for any special purpose of the Corporation. The fiscal year of the Corporation shall begin on the first day of August and end on the last day in July. or other depositories as the Board of Directors may select. or orders for the payment of money. and shall keep at the registered or principal office a record giving the names and addresses of the members entitled to vote. In all succeeding years. 9. the Corporation shall remit $ 1. The Corporation shall keep correct and complete books and records of account and shall also keep minutes of the proceedings of its members. agent or agents of the Corporation and in such manner as provided in these By-laws or as from time to time determined by the Board of Directors. ARTICLE IX MISCELLANEOUS 9.5 Special Provision.2 Checks and Drafts. The Board of Directors may accept on behalf of the Corporation any contribution. These Bylaws may be amended at any regular or special meeting of the Board of Directors by a two-thirds vote of the members present and voting. gift.1 Books and Records. 8. we have hereunto set our hands this day and year shown below.or other evidences of indebtedness issued in the name of the Corporation shall be signed by such officer or officers. PURPOSE As a member of the Kicks & Splits Dance/Drill Team. the President(s) and the Treasurer(s). Proof of financial hardship shall be provided in written form (see Procedure section). the related Committee member(s) shall be replaced by other member(s) of the Executive board as selected by the President. The purpose of Financial Aid is to reduce those expenses for individual(s) in a situation of financial hardship. in the event of such a conflict. The Committee is responsible for a good faith determination of financial need while respecting the privacy of the individual(s). Eligibility is based on the income level test used by Cypress-Fairbanks ISD for reduced price lunches.KICKS & SPLITS PARENT CLUB POLICY GUIDELINE: FINANCIAL AID DEFINITION “Financial Aid” refers to financial support provided to individual Kicks & Splits team members from the Kicks & Splits Parent Club general fund. THE COMMITTEE The Committee shall consist of the Dance/Drill Team Director.16 09/07/2010 . and/or their parent(s). Eligibility is contingent upon good faith participation by the individual and/or parent(s) in the Club’s fundraising activities. students incur expenses throughout the year that are offset by the Parent Club through financial contributions from team members and/or their parents/guardians. Financial Aid decisions may not be made by a Committee member who is related to a sponsorship candidate. ELIGIBILITY Award of Financial Aid is determined by a Committee of the Parent Club Executive Board. PROCEDURE Requestors should submit a Financial Aid application (see Sheet 3 of this document). A1. are encouraged to contact the Dance/Drill Director or the Parent Club President or Treasurer to discuss situations of financial hardship. Privacy of the individual shall be fully respected. Individual Kicks & Splits team members or prospective team members. whichever is the lower. without regard to talent or ability in any area (with the exception that the individual must be qualified as a team member according to the Kicks & Splits Constitution). SCOPE The total amount of funds available for individual sponsorship in any fiscal year shall be limited to $1. Financial Aid funds shall be used only to reduce or eliminate the individuals’ normal financial contribution to the Kicks & Splits Parent Club. There is no limit on the number of individuals who may be sponsored in any fiscal year. DOCUMENTATION A case history file shall be maintained in accordance with IRS regulations for tax-exempt organizations.MECHANISM No funds shall be disbursed directly to any individual.00.17 09/07/2010 . The maximum amount of sponsorship for any individual in any fiscal year shall be $500.00 or 1% of that year’s total planned budget. ADMINISTRATION This policy shall be administered uniformly from year to year and shall be applied fairly and equitably to all requestors.500. Financial Aid funds shall not be used for purchase of personal supplies on behalf of the individual(s). Disbursement of funds shall be an internal accounting transaction in which funds are transferred from the Financial Aid Fund to the Contributions Account on behalf of the individual(s). Adopted ________2010 A1. 793 47.18 09/07/2010 .823 3.247 2.919 Monthly 2.553 +$577 Weekly 519 652 785 918 1. Social Security Any Other Monthly Income NAME Signature of Adult Household Member: _________________________________ Printed name: _______________________________________________________ Address Date: : _______________________________________________________ _______/________/_________ 3. A1. 2. your Kicks & Splits Team Member is eligible for consideration of Financial Aid from the Kicks & Splits Parent Club. INCOME CHART Household Size 2 3 4 5 6 For each additional member add Annual 26.976 4.955 33. Required Information: Name of Kicks & Splits Team Member: _____________________________________ HOUSEHOLD MEMBERS AND MONTHLY INCOME Gross Monthly Earnings Monthly Income from Welfare.400 3. If your total household income is the same or less than the amounts on the chart below. Alimony Monthly Income from Pensions. Retirement.KICKS & SPLITS PARENT CLUB FINANCIAL AID APPLICATION FORM 1.874 40.631 +$6. Child Support.051 +$134 * Based on the 2010-11 income levels for District students to receive reduced price lunches.712 54. Notes: Award of Financial Aid is subject to availability of Kicks & Splits Parent Club funds and is subject to the provisions contained in the Kicks & Splits Parent Club’s Financial Aid Policy Guideline. 2008 Silver Bank 6577 Mining Road Tarnished. President 251-552-7755 _________________________ Mickey Mouse. please make the following changes to this bank account’s status and authorized signers as of July 1. 2007-08 Treasurer We appreciate your assistance with these transition details. Treasurer ________________________ Peter Pan. Vice-President 251-553-7588 Authorize the following three people as signers on the account: 251-459-6633 251-552-5570 251-552-1232 Snow White. 2007-08 President Minnie Mouse. 2007-08 Vice-President Daffy Duck. please contact one of the officers listed below. Vice-President _____________________________ Donald Duck. the newly elected officers will assume responsibility for the organization. 2008.Go Team Go Booster Club PO Box 9622 Houston. 2008: EIN: 76-9999999 Remove the following people from the list of authorized signers on the account: _____________________________ Donald Duck. TX 00003 June 22. 2008. If you have any questions. President Go Team Go Booster Club is a 501(c)(3) tax-exempt organization. Treasurer 251-552-1255 ________________________ Peter Pan.19 08/01/2008 . To Whom It May Concern: On June 30. __________________________ Mickey Mouse. the executive board of Go Team Go Booster Club will resign to coincide with the end of the fiscal year. A1. Therefore. On July 1. TX 66978 Re: Account #552113 Go Team Go Booster Club. Sincerely. Our bank and the IRS have been notified of this change as well.20 08/01/2008 . 2008. If you have any questions. TX 00003 June 22. Attached is a list of the incoming board members for your records. the newly elected officers will assume responsibility for the organization. On July 1.) A1. the executive board of Go Team Go Booster Club will resign to coincide with the end of the fiscal year. __________________________ Mickey Mouse Assistant Treasurer 251-553-7588 _____________________________ Donald Duck Treasurer 251-552-1255 ________________________ Peter Pan President 251-552-7755 (Attach a list of the new officers including their name and address. 2008 Exempt Organizations PO Box 13528 Austin. Sincerely.Go Team Go Booster Club PO Box 9622 Houston. 2008. TX 78711-3528 Re: Go Team Go Booster Club EIN: 76-9999999 To Whom It May Concern: On June 30. please contact one of the officers listed below. We appreciate your assistance with these transition details. Our bank has been notified of this change as well. OH 45201-2508 Re: Go Team Go Booster Club EIN: 76-9999999 To Whom It May Concern: On June 30. TX 00003 June 22. We are furnishing this record in accordance with IRS Letter 1045. Attached is a list of the incoming board members. __________________________ Mickey Mouse Assistant Treasurer 251-553-7588 _____________________________ Donald Duck Treasurer 251-552-1255 ________________________ Peter Pan President 251-552-7755 (Attach a list of the new officers including their name and address. please contact one of the officers listed below.) A1. the executive board of Go Team Go Booster Club will resign to coincide with the end of the fiscal year. On July 1. 2008. Sincerely.21 08/01/2008 .Go Team Go Booster Club PO Box 9622 Houston. We appreciate your assistance with these transition details. 2008 Internal Revenue Service TE/GE Room 4010 PO Box 2508 Cincinnati. the newly elected officers will assume responsibility for the organization. If you have any questions. 2008. . Money Order.500. Evidence of their tax-exempt status would be a Determination Letter from the IRS. The District may receive charitable contributions if they are for public purposes. However.00 . Estimated Value $ (The estimated value is not verified by Cypress-Fairbanks ISD. or various District groups and clubs. The District is not a tax-exempt entity under the Internal Revenue Service (IRS) Code Section 501(c)(3). Furniture.Check # 02315 .) Amount $ Type 2. the District is considered a tax-exempt organization that may receive charitable contributions according to the IRS Code Section 170(c)(1). These charitable contributions are deductible by the contributor on their tax return. District departments. Since these organizations are separate entities from the District. TX 77496 Contact Name / Phone Number: Daddy Warbucks / 287-555-1122 Contact Email Address: Dwarbucks@hwood through the contribution of: X Monetary Contribution .500.Cash. then the donation is considered a contribution to the District. These organizations must apply for their tax-exempt status under IRS Code Section 501(c)(3). Cashier's Check Non-Monetary Contribution . Contributions may be made to the District. Name of District Employee receiving the Contribution: Jane Doe Title of the District Employee: Financial Secretary School or Location: Hanagan High School Department: Principal's Office Date: 9/7/2010 Cypress-Fairbanks Independent School District is a public school district and is a political subdivision of the State of Texas.Cash Receipt #0051001289 was issued. are not contributions to the District. The amount reported to the IRS is the responsibility of the contributor and not the District. When a PTO or Booster Club donates monetary or nonmonetary items to the District.1 .Technology. Check. contributions made to various parent organizations. The federal identification number of Cypress-Fairbanks Independent School District is #74-6000654. Updated 03/04/2010 Distribution of Form: Contributor and VIPS / Department Representative B1. the District’s tax-exempt status does not apply to these organizations. or Other Description $2.00 This support will assist the District in continuing to improve the educational environment.Cypress-Fairbanks Independent School District CONTRIBUTION ACKNOWLEDGMENT Cypress-Fairbanks Independent School District greatly appreciates the support of: Name of Contributor (Organization / Individual): Daddy Warbucks Drama Booster Club Address: 2225 Annie Avenue Hollywood. Equipment. Please note. such as PTOs and Booster Clubs. District schools. such as benefiting a group and not an individual. District employees shall not serve in a capacity over the organization’s financial affairs. The written approval must be kept on file with the District’s internal auditor.Authorization for Signer on PTO & Booster Club Bank Accounts According to Board Policy GE (Local). except for the position of Treasurer. Substitute Teacher.” The PTO / Booster Club would like the following District substitute or temporary worker to be an authorized signer on the PTO’s / Booster Club’s bank account(s): Name (Printed) Position ( i. or Other Officer) Approval by the Principal or Supervisor where the PTO / Booster Club is located: Name (Printed) Signature Date Approval by the Associate Superintendent for Business and Financial Services: Name (Printed) Signature Date Return the completed form to the Internal Audit Department at ISC-West.1 09/07/2010 . Treasurer. Relations with Parents or Parents’ Organizations: “District employees may serve parent organizations as a general member or as a member of its executive board.e.. Substitute Paraprofessional) Employee’s Signature District Location / Department The District substitute or temporary worker would serve the PTO / Booster Club as: (President. This approval must be requested and received each school year. Appropriate written approval from the principal or supervisor where the organization is located and the associate superintendent for business services must be received before a District substitute or temporary worker may be a Treasurer or authorized signer on the bank account of a parent organization. B2. including an authorized signer on the bank account. The Operating Report (2 pages) shall be prepared promptly upon completion of the fund-raising activity. If a PTO or Booster Club is holding the fund-raiser. Campus Organization Date Sponsor / / Specific Purpose(s) for which the net proceeds are to be used: Activity Fund Account(s) that will receive the net proceeds (Budget Unit # & Account #): Budget Unit # Budget Unit # Description of Fund-Raiser Account # Account # Is Vendor on the approved vendor list? Vendor Name Vendor Address Quoted Profit % from Vendor Type of Fund-Raiser □ □ □ □ Yes ___ No ___ Vendor Representative Vendor Phone # Catalog Sale Single Item Sale Concessions Other – Describe: / / Date Revised 08/2010 Sponsor/Person Requesting Permission B2. The organization is responsible for handling the money received and the related expenditures as well as keeping the fund-raiser records as required for record retention. the Operating Report should be provided to the organization’s Treasurer and not the school. 2. The Permission Request (2 pages) must be completed and submitted to the principal or designee for approval by September 30 of each school for the fund-raisers to be held.2 . The Principal will return the form to the individual requesting permission.Cypress-Fairbanks Independent School District Fund-Raising Activity Report Permission Request Instructions 1. A copy of the form should be retained by the organization sponsor and the original should be turned into the financial secretary (secretary that handles the school’s finances) no later than one week subsequent to the projected end date of the fund-raiser as stated on the Permission Request. Cypress-Fairbanks Independent School District Fund-Raising Activity Report Permission Request Fund-Raiser Start Date / / Fund-Raiser End Date / / / / Due Date for Operation Report (1 Week after the Fund-Raiser End Date) ___ Major Fund-Raiser This is the 1st ___ 2nd ___ 3rd ___ major fund-raising activity for the school year that I have requested for this group. This is the 1st ___ 2nd ___ 3rd ___ 4th ___ 5th ___ 6th ___ minor fund-raising activity for the school year that I have requested for this group. Yes ___ No ___ Yes ___ No ___ If yes, 1st ___ 2nd ___ ___ Minor Fund-Raiser Are items being sold taxable? If yes, is this a “one-day, tax-free” sales day? Each organization or campus is allowed to two “one-day, tax-free” sales days per calendar year (January thru December). Expected Profit Estimated Revenue Less: Estimated Cost of Fund-Raiser Equals: Estimated Profit (Net Proceeds) $ $ $ With this Permission Request, submit details of the fund-raiser to be held such as the brochure, flyer, t-shirt or product design, and any other pertinent information. As the sponsor of this fund-raiser, I agree to conduct this fund-raiser in compliance with district policies. I understand that I am personally responsible for all funds collected and for keeping accurate records. I will exercise strict control over all products in my possession. I will provide all money received along with the name and amount turned in by student [parent] to the financial secretary [treasurer] daily for deposit. I will have all expenditures paid through the financial secretary [treasurer]. I am responsible for completing the Operating Report for this fund-raiser and will turn in all records to the financial secretary [treasurer] within one week of the projected end date of the fund-raiser. Sponsor/Person Requesting Permission □ APPROVED □ DENIED / / Date Principal or Designee B2.3 / / Date Revised 08/2010 Cypress-Fairbanks Independent School District Fund-Raising Activity Report Operating Report Organization Fund-Raiser Total Collections from Fund-Raiser: Date Receipt # Description $ Amount Per Attached List (if needed) Total Collections $ Total Disbursements for Merchandise, Advertising, Prizes, etc. for Fund-Raiser: Date PO# Payee/Vendor $ Amount Per Attached List (if needed) Total Disbursements $ Profit (Net Proceeds) from Fund-Raiser: Total Collections – Total Disbursements $ Sponsor/Person Responsible for Fund-Raiser / / Date Revised 08/2010 B2.4 Cypress-Fairbanks Independent School District Fund-Raising Activity Report Operating Report Complete one (1) of the following attachments, if applicable, based on the type of fund-raiser held: Attachment A for Catalog / Product Sales, Attachment B for Ticket Events with Entry or Participation Fees, or Attachment C for Concessions. Operating Report Completed by: / / Date Sponsor/Person Responsible for Fund-Raiser Submit the Operating Report to the financial secretary no later than one week subsequent to the projected end date of the fund-raiser. For PTOs and Booster Clubs, submit the Operating Report to your Treasurer. Verification by Financial Secretary: To verify the Operating Report, Review the pertinent attachment depending on the type of fund-raiser held. Determine if products and amount collected have been accounted for properly. Agree collections on the operating report to the deposits made. Agree the disbursements for the fund-raiser to the vendor invoice(s) and purchase orders. Any discrepancies noted? Yes ___ No ___ If yes, describe any discrepancy noted. Attach a written response from the Sponsor/Person responsible for the fund-raiser concerning any discrepancy noted. Response should be signed and dated by the person providing it. Financial Secretary / / Date Reviewed and Approved by: Principal or Designee / / Date Revised 08/2010 B2.5 where are the items stored and what is the expected disposition of these items? Total Reconciliation Do the Total Sales of Products agree to the Total Collections on the Operating Report? Yes ___ No ___ If No. candy sales. For items remaining on hand.6 . you may want to do the above analysis for each product separately.Cypress-Fairbanks Independent School District Fund-Raising Activity Report – Attachment A Catalog / Product Sales Inventory Reconciliation (For wrapping paper. t-shirts. or Entertainment Books) Total Sales Amount (# of Items x Sales Price) Description Items Received from Vendor Less: Items Returned to Vendor (Attach Credit Statements) Less: Items Distributed. But Money not Received (Complete Section for Students that Owe Money) Less: Items Remaining on Hand Items Sold / Total Sales of Products # of Items For sales involving multiple products. Gold C Books. gift items. Sponsor/Person Responsible for Fund-Raiser Attachment A / / Date Revised 08/2010 B. Students that Owe Money from the Fund-Raiser Student ID # Student Name Amount Disposition Per Attached List (if needed) Total Amount Owed by Students Students that owe money for a school or school organization fund-raiser should have the amount owed added to the Fines and Fees List for the school. the amount of difference is $ Explain the difference below. The Fines and Fees List can not be used by PTOs or Booster Clubs. utilize the overall tally sheet for the orders.2. or complete only the Total Sales Amount column. determine the number of tickets sold.2.Cypress-Fairbanks Independent School District Fund-Raising Activity Report – Attachment B Ticket Events with Entry or Participation Fees Ticket Reconciliation (For Athletic. Beginning Ticket # Ending Ticket # Less: # of Comp. Students that Owe Money from the Fund-Raiser Student ID # Student Name Amount Disposition Per Attached List (if needed) Total Amount Owed by Students Students that owe money for a school or school organization fund-raiser should have the amount owed added to the Fines and Fees List for the school. attach list of people that received the complimentary tickets. the amount of difference is $ Explain the difference below. Ticket stubs must be kept as part of the fund-raiser records. Tickets # of Tickets Sales Price Total Sales Description Ticket Type 1 Ticket Type 2 Ticket Type 3 Ticket Type 4 Total Sales from Tickets If any complimentary tickets are given. or Drama Events with Entry or Participation Fees) Based on the beginning and ending ticket numbers and less any complimentary tickets.7 . The Fines and Fees List can not be used by PTOs or Booster Clubs. Total Reconciliation Do the Total Sales from Tickets agree to the Total Collections on the Operating Report? Yes ___ No ___ If No. Sponsor/Person Responsible for Fund-Raiser / / Date Attachment B Revised 08/2010 B. Band. Cypress-Fairbanks Independent School District Fund-Raising Activity Report – Attachment C Concessions Concessions Reconciliation Based on the beginning and ending inventory of each type of product and less any complimentary products given. determine the number of products sold.8 . Products # of Products Sold Type of Inventory Product 1 Product 2 Product 3 Product 4 Product 5 Product 6 Product 7 Product 8 Product 9 Product 10 Per Attached List (if needed) Total Sales Sales Price Total Sales If any complimentary products are given such as for workers. Beginning Inventory Ending Inventory Less: Comp. Sponsor/Person Responsible for Fund-Raiser / / Date Attachment C Revised 08/2010 B.2. the amount of difference is $ Explain the difference below. attach a sheet listing the people that received the products and the products that they received. Total Reconciliation Do the Total Sales from Concessions agree to the Total Collections on the Operating Report? Yes ___ No ___ If No. . us . and transit authorities) may also impose sales and use tax up to 2% for a total maximum combined rate of 8. for the most up-to-date version of this information. Does an exemption certificate have to have a number to be valid? No. The requirement to obtain a Texas sale and use tax permit applies to individuals as well as corporations. You will be required to collect both state and local sales and use tax. What is the sales tax rate in Texas? The Texas state sales and use tax rate is 6. For information about the tax rate for a specific area.state.25%. counties. please go to www. and all other legal entities. Who needs a sales tax permit? You must obtain a Texas sale and use tax permit if you are engaged in business in Texas and you: sell tangible personal property in Texas. firms. The information documented below is subject to change by the Texas State Comptroller’s Office. but local taxing jurisdictions (cities.286 and publication 96-259 Taxable Services for more information.” For a list of local tax rates ask for publication 96-132 "Texas Sales and Use Tax Rates. lease tangible personal property in Texas. see Local Sales and Use Tax Rate Information.Texas Sales Tax – Frequently Asked Questions Susan Combs Texas Comptroller of Public Accounts The following excerpts were downloaded from the Texas State Comptroller’s website. or sell taxable services in Texas. The tax rate for sales and use taxes are the same.tx. ask for publication 94-183 Sales and Use Tax Bulletin. Please see Rule 3.window.1 09/07/2010 ." We also provide tax rate cards for all combined tax rates. there are no "tax exempt" numbers. For state tax purposes. For information on collecting and reporting local sales and use tax. partnerships. See Purchases/Use Tax for additional information. special purpose districts. Therefore.25%. C1. Preprinted monthly tax returns are mailed the first week of the following month. Monthly sales and use tax returns are due on or before the 20th day of the month following the month in which the taxes were collected.Texas Sales Tax – Frequently Asked Questions When is my sales tax return due? When you obtain your Texas sales and use tax permit. or visit the nearest enforcement field office. You can request a fax when you call (800) 252-5555. Some sales tax forms are also available via Fax on Demand. For example. If the due date falls on a Saturday. a taxpayer can download a blank return at our Tax Forms Online. but depending on how much tax your business collects. If the business does not receive a preprinted form. Quarterly sales and use tax returns are due on or before the 20th day of the month after the end of the quarter in which the taxes were collected. Most businesses will file monthly returns. For example. quarterly. C1. To receive a blank return. Texas law requires every taxpayer or licensee who paid a total of $100. This filing requirement will be adjusted based on the amount of taxes that you actually collect. the 2002 return will be mailed by the first week of January 2003. it is the taxpayer's responsibility to file a tax return and remit taxes on time.000 or more in a payment category during the preceding state fiscal year (September 1 through August 31) to pay by EFT. call us at (800) 252-1389. We send preprinted tax returns to almost all businesses that hold a Texas sales and use tax permit. the July return will be mailed the first week of August. the first quarter covers January. or yearly basis (the determination is based on the volume of sales expected for your business). the July return must be filed on or before August 20th. you might qualify to file quarterly or yearly returns. you will be instructed to file your tax return on a monthly.2 09/07/2010 . the first quarter return will be mailed the first week of April. Sunday. February. Yearly sales and use tax returns are due on or before January 20th. or if you are required by state law to file your tax returns electronically.000 in state sales and use tax per year may file yearly. For example. We will not send preprinted tax returns to a business if the post office has notified us that the mailing address is undeliverable. and March. Yearly: Taxpayers who collect less than $1. Preprinted yearly tax returns are mailed the first week of the month following the end of the year. For example. Preprinted quarterly tax returns are mailed the first week of the month following the end For example. Quarterly: Taxpayers who collect less than $500 state sales and use tax per month (or less than $1500 per calendar quarter) may file quarterly. and the return must be filed on or before April 20th. Monthly: Taxpayers who collect $500 or more in state sales or use tax in a month must file monthly. or legal holiday the next business day is the due date. For example." or "postage" on an invoice represents delivery charges. you owe Texas sales tax on the purchase. call the IRS. Certain organizations may qualify for exemption from paying franchise tax.3 09/07/2010 .541 and 3. You must file a tax return even if you have no sales for the reporting period or if all your sales are nontaxable. Note: "Delivery. hotel or sales tax on items purchased to further the organization's exempt purpose. Do I owe tax on goods purchased via mail-order catalogs or Internet merchandise? Yes. If the out-of-state seller does not have a Texas permit or does not collect Texas use tax. A seller who uses catalogs or the Internet to sell goods is treated the same as any other seller of taxable items. You should collect sales tax on $550.161 and 3. do I still file a return? Yes. 1-800-829-1040. An out-of-state mail-order company or an Internet company may hold a Texas Sales and Use tax permit and collect Texas tax. Please note that separately stated charges for postage are not taxable when billed by the seller to a client if the cost of the postage was incurred by the seller at the request of the C1. you sell a sofa to a customer for $500. If you purchase merchandise through a catalog or the Internet from a seller located in Texas. Are delivery or shipping charges taxable? Shipping and handling charges are taxable if the charges are associated with the sale of taxable goods or service. If you purchase merchandise through a catalog or the Internet from a seller located outside of Texas and use the taxable item in Texas. or 512/462-7843. and hotel tax Rules 3. If you deliver the sofa for a fee of $50. You do not collect sales tax on the $550.Texas Sales Tax – Frequently Asked Questions If I don't owe taxes. if you sold a similar sofa for $500 to another customer who issues you a properly completed resale or exemption certificate. franchise tax Rules 3." "shipping. your $50 delivery charge is also taxable. Exemptions: Sales Tax Information for Nonprofit Organizations sales tax Rule 3. If you need a federal employer's identification number. Please refer to Rule 3. there are no "tax exempt" numbers. How do I get a tax exempt number? Let's begin by saying that for state tax purposes. the use tax is due and payable by the purchaser. Because your sale of the sofa is taxable.163. the delivery charge is not taxable. then you owe Texas use tax on the purchase. For more information ask for tax bulletin 94-125. You agree to deliver the sofa and charge separate fee of $50 for delivery.573. then your sale and the delivery charge are exempt.303.322. In contrast. Texas Sales Tax – Frequently Asked Questions client to distribute tangible personal property to third party recipients designated by the seller's client. tangible personal property that you buy to lease or rent to your customer a taxable service performed on tangible personal property in your resale inventory. If you sell multiple taxable items on one invoice. The Comptroller will only accept one of the following from the seller to substantiate a claim of export: a licensed U. then you must compute the tax on the total sum of the sales prices of the taxable items sold. a bill of lading issued by a licensed and certificated carrier showing the retailer as shipper and a delivery point outside of the United States. You would apply the tax rate to $85 to calculate the sales tax. Tax charts are located on the Sales Tax forms page. then the total sum of the sales prices is $85. import documents issued by a foreign country. How much sales tax do I collect from my customers? You should calculate the amount of sales tax by multiplying the tax rate by the sales price of the taxable item. What can I buy tax-free with my tax number? You can use a resale certificate to purchase the following items tax-free: merchandise or a taxable service that you intend to resell in the form or condition in which you acquired it from your vendor or that you intend to resell as an integral part of other merchandise or taxable service. C1. if you sell three T-shirts for $10. customs broker export certification.S. $25. For example. and $50. Is tax due on merchandise I'm going to export? You do not have to collect Texas tax on goods that you export.4 09/07/2010 . and tangible personal property that you buy to use in performing a taxable service when you transfer the care. or an original airway. custody and control of the tangible personal property to your customer. but you must keep records to prove export. Sales tax = sales price of a taxable item multiplied by the tax rate. ocean or railroad bill of lading with freight forwarder's receipt. value for the period of use or on the purchase price of the item.Texas Sales Tax – Frequently Asked Questions If you use the merchandise that you purchased tax-free by issuing a resale certificate.5 09/07/2010 . C1. You must pay the sales tax either on the fair market rental value for the period of use of the merchandise or on your purchase price of the item. then you owe tax on the merchandise. us/taxinfo/exempt/exemptfaq.. Exemption from franchise tax is possible if your organization received a federal exemption under 501(c)(2)... the Tax Code recognizes certain federal exemptions for exemption from franchise tax and sales tax. or (25).tx.6 08/01/2008 . (10) or (19). Organizations that are exempt because of their IRS status are not exempt from hotel occupancy tax.. as a homeowners' association.. (5). Our mailing address is on the application. franchise tax. (4). The information documented below is subject to change by the Texas State Comptroller’s Office. religious.complete AP-204.. for the most up-to-date version of this information. as a religious organization. (8).. Are 501(c) organizations exempt from state taxes? Not automatically.. However.complete AP-209. If your organization has received exemption from federal taxation under 501(c)(3).window. please go to http://www.Texas Tax Exemptions for Nonprofit Organizations Susan Combs Texas Comptroller of Public Accounts The following excerpts were downloaded from the Texas State Comptroller’s website. If your organization is applying for exemption: as a charitable organization..state. charitable and educational groups with IRS 501(c) exemption should complete the application specific to their organization type.complete AP-206.complete AP-205. Applying for Exempt Status To apply for exemption. (6). Therefore. if incorporated. complete the appropriate application and include the required documentation. (16). as an educational organization.. To receive a hotel occupancy tax exemption. it qualifies for exemption from sales tax and.html .complete AP-207. C1. as any other exemption type. Complete AP-204 and send it to us along with the required documentation listed on the application. (7). when traveling on official business for the organization. exempt organizations must obtain sales tax permits and collect and remit sales tax on all goods and taxable services they sell. Should an exempt organization making sales collect sales tax? Generally. an exempt organization must give the retailer a properly completed exemption certificate to document the exempt sale. showing the organization is exempt from hotel tax.Sales and Purchases for a list of limited exceptions. The certificate must be issued on a timely basis and it must include certain specific information. Effective October 1. When purchasing a taxable item. religious or educational exemption are exempt from state hotel occupancy tax. Does that mean that we are tax-exempt? No. When should sales tax be collected? Generally. C1. complete form AP-201 I travel on behalf of my organization. My organization has a federal tax identification number. See our publication Exempt Organizations . exempt groups must obtain sales tax permits and collect and remit sales tax on all items they sell.7 08/01/2008 . Merely having a federal tax identification number or federal employer identification number (FEIN) does not mean that an organization is exempt from state or federal taxes. Am I eligible for hotel tax exemption? Organizations that have been granted a charitable. Local hotel taxes are still due. Employees of such an organization may issue a properly completed hotel occupancy tax exemption certificate to the hotel at the time of registration. the hotel may require a copy of your exemption letter or verification. See Rule 3. such as a printout from the Comptroller's list of exempt entities. 2003.287. If you need a sales tax permit.Texas Tax Exemptions for Nonprofit Organizations What can an exempt organization buy tax free? An exempt organization that is exempt from sales tax may buy tax-free goods and services that further the organization's exempt purpose. a school group selling yearbooks may accept pre-orders without collecting tax if the day the yearbooks will be delivered to customers is designated as one of the group’s tax-free fundraisers. Te x a s C o m p t r o l l e r o f P u b l i c A c c o u n t s Texas school districts. The organization must obtain a sales tax permit and collect and remit sales tax on taxable items it sells unless one of the exemptions listed below applies. if the purchases are related to the organization’s exempt function.000 unless it is manufactured by the organization or donated to the organization and not sold back to the donor.BULLETIN S u s a n C o m b s . qualified exempt private schools and bona fide chapters within a qualifying school may conduct two one-day tax-free sales or auctions each calendar year. For the purposes of this exemption.tx. These days should be designated in advance so that purchasers are aware that the sales are not subject to tax.us • Window on State Government: www. For example. hats.window. The exemption does not apply to any item sold for more than $5.” For example. school supplies or crafts 94-183 (07/09) Tax Help: tax. See subsection (h) of Rule 3. The organization may not collect tax on the transactions and keep the tax under the “tax-free” sale provision. “Exempt Organizations.322.us Call Tax Assistance Toll Free: (800) 252-5555 • Local Number in Austin: (512) 463-4600
[email protected] . Surplus yearbooks sold during the same day also qualify for the exemption. uniforms.tx. Those buying on subsequent dates owe tax unless the purchase occurs on the organization’s other tax-free sale day. Two One-Day Tax-Free Sales School districts.state. Either the date on which the items are delivered by the vendor to the school organization or the day on which the school organization delivers the items to its customers may be designated as the one-day tax-free sale day. public schools. S A L E S A N D U S E TA X July 2009 School Fundraisers and Texas Sales Tax tax-free on a designated tax-free sale day. a school may sell taxable items such as t-shirts. An organization does not have to register for a sales tax permit if all its sales are of exempt items or if its sales take place through tax-free fundraisers. public schools. qualified exempt private schools and each bona fide chapter within a qualifying school are exempt from the payment of Texas sales and use tax on purchases of taxable items for their use. Persons buying from surplus inventory on the designated date do not owe tax. one day is counted as 24 consecutive hours and a calendar year is the 12-month period from January through December.state. Surplus yearbooks sold on other days are taxable unless sold at the group’s other tax-free fundraiser. the seller should provide instructions and information regarding the proper collection of tax.g. the group receives a commission for holding a book fair or for selling candy. Bona fide chapters include student groups recognized by the school and organized by electing officers. As a result. candles or similar items. senior class.tx. Schools and Bona Fide Chapters To qualify as a bona fide chapter of a school. When an exempt organization acts as a commissioned sales agent or representative for a for-profit seller. must obtain a sales tax permit and collect and remit sales tax on all taxable items sold at 2 Susan Combs • Texas Comptroller of Public Accounts Tax Help: tax. however. Form 01-339 (front). If an exempt organization is purchasing taxable items for resale during its designated tax-free sale days and it holds a sales tax permit. gift wrap. football team or similar group may hold two one-day tax-free sales or auctions S A L E S A N D U S E TA X If two or more groups hold a one-day tax-free sale together. junior class or freshmen).window.us • Window on State Government: www. unless otherwise qualified to hold the two one-day tax-free sales. Groups that are not considered bona fide chapters. such as a purchasing. is not a bona fide chapter even though it is part of the school or school district. but may qualify for the tax-free sale days under other provisions of the Tax Code.state. Nonstudent Nonprofit Organizations Nonstudent nonprofit organizations that are not bona fide chapters of schools may qualify for two one-day tax-free sales or auctions on their own. but cannot be limited to specific classes (e. maintenance or IT department. PTA/PTO. See the “Nonstudent Nonprofit Organizations” section in this publication for more information. science club or drama club can qualify if they are composed of students and school staff. In these cases. the group is not responsible for reporting and remitting sales and use tax. the organization may either give the retailer a resale certificate. Form 01-339 (back) to purchase the items tax-free. A booster club for a band. however. The for-profit retailer may advertise in the sales catalog or state on each invoice that tax is included or require that tax be calculated and collected based on the selling price of each taxable item.9 .state. tax-free sales. the exempt organization is not considered to be the seller and cannot use a tax-free sale day for this type of event. Bona fide chapters can include whole grade levels (e. or an exemption certificate.S c h o o l F u n d r a i sers and Texas Sales Tax BULLETIN fundraisers. a group of students must be organized for an activity other than instruction or to have a tax-free sale.g. Senior English or Biology II). The for-profit retailer is then responsible for remitting the tax collected or backed out to the Comptroller. Similarly. may purchase items for resale tax-free by issuing an exemption certificate to the vendor for items sold during its two one-day. A non-permitted exempt organization.us C1. Non-Qualifying Fundraisers – Acting as an Agent or Sales Representatives When a school. holiday ornaments. booster club or other exempt organization raises funds by acting as a sales representative or commissioned sales agent for a for-profit retailer. holding meetings and conducting business. accounting. sales of taxable items made through the Web site of a for-profit retailer are also taxable and may not be sold tax-free in connection with a fundraiser.tx. Various other school groups such as a student council. the event counts as one tax-free sale for each participating organization. A department of a school. Non-student organizations such as booster clubs and PTAs/PTOs cannot qualify as bona fide chapters of a school.help@cpa. There is no limit on the number of bona fide chapters a school can have. Each of those organizations then is limited to one additional tax-free sale during the remainder of the calendar year. school group. (4). if the sales are part of the organization’s fundraising drive and all net proceeds go to the organization for its exclusive use. These organizations should complete form AP-207 and submit it to the Comptroller’s office.us • Window on State Government: www.S c h o o l F u n d r a i sers and Texas Sales Tax BULLETIN other non-student. PTSAs. sodas. PTOs. candy or soft drinks tax-free outside of the school day if the sales are part of the organization’s fundraising drive and all net proceeds go to the group for its exclusive use. After the Comptroller’s office notifies the club of its exempt status. however. PTA/ PTO or other group (such as a booster club) associated with a public or private elementary or secondary school. are also exempt from sales tax as educational organizations. nonprofit organizations that accept online orders through a Web site must collect sales tax on taxable items they sell online. along with a copy of its IRS exemption letter. Annual Banquets and Annual Food Fundraisers All volunteer nonprofit organizations can hold a taxfree annual banquet or other food sale provided the Internet Sales Sales of taxable items over the Internet are treated the same as sales of taxable items made at the school or at any other sales
[email protected]. (8). (10) or (19) is exempt from sales and franchise taxes. Parent-teacher associations (PTAs) affiliated with the Texas state PTA or the national PTA are exempt as educational organizations and can hold two one-day tax-free sales or auctions each calendar year. Parent-teacher organizations (PTOs). A booster club that has a 501(c) federal exemptions should complete AP-204 and submit it. PTAs/PTOs and other qualifying groups associated with a specific public or private elementary or secondary school or school group may also sell meals. This exemption includes food.10 . school group or PTA/PTO does not have to collect tax on sales of meals and food products (including candy and soft drinks) if the sales are made during the regular school day and by agreement with the proper school authorities. The exemption applies to sales of soft drinks and candy. as well as parent-teacher-student associations (PTSAs) and organizations (PTSOs). and PTSOs made at other times of the year are subject to tax.state. Sales of taxable items by PTAs. would qualify for the exemption. these organizations can also hold two one-day tax-free sales or auctions each calendar year. PTAs not affiliated with the Texas state PTA or the national PTA.us 3 C1. soft drinks and candy sold through vending machines.window. food. The group can issue an exemption certificate in lieu of paying tax on purchases of candy. parent-teacher organizations (PTOs) and parent-teacherstudent associations (PTSAs) and organizations (PTSOs) are also eligible for exemption from sales tax as educational organizations. Once the exemption has been granted. the club can hold two one-day tax-free sales or auctions each calendar year. but does not include sales of alcoholic beverages. A nonprofit organization with an Internal Revenue Service (IRS) exemption under Section 501(c)(3). Schools. to the Comptroller’s office.tx. gum and other taxable food items sold at its concession stand. S A L E S A N D U S E TA X once it has obtained a sales tax exemption from the Comptroller’s office on its purchases. Food and Beverage Sales A public or private elementary or secondary school.state. Concession Stands Concession-stand food sales are exempt from tax when made by a school group. The exemption certificate should state that the group will sell the items as a fundraiser. school groups and Susan Combs • Texas Comptroller of Public Accounts Tax Help: tax. An online sale occurring during a one-day tax-free sale. and must be prepared and served by the participating organizations’ volunteers. retailers should collect tax when the certificate or coupon is redeemed for the purchase of taxable merchandise or services. The exemption does not apply to the sale or purchase of alcoholic beverages. Instead. arts. the food and beverages cannot be prepared or served by a caterer or a restaurant. served and sold by members of the organization. other than an IRS Section 4 Susan Combs • Texas Comptroller of Public Accounts Tax Help: tax.tx. Groups holding car washes are not required to collect tax on their charges for this service. Single issues and subscriptions for fewer than six months are taxable. is not in competition with a retailer required to collect tax. • be a fundraising project exclusively provided by the volunteers of the participating nonprofit organizations..us C1. Alcoholic beverages are not food products and are taxable. crafts or t-shirts). without pay). are subject to the Texas 14 percent mixed beverage gross receipts tax when sold by a mixed-beverage permit holder.. pizza kits. if the gift certificate is for a nontaxable service such as a haircut. no sales tax is due when the certificate is redeemed. Sales of alcoholic beverages. bagels and muffins) are exempt unless sold with plates or eating utensils. salsa. • last no more than one week. Amusement Services The sale of an amusement service provided exclusively by a nonprofit organization.11 . a deduction for a coupon). To qualify for exemption. cookies. jelly. wine and mixers. The type of tax due (sales tax or mixed beverage gross receipts tax) depends upon the type of permit held by the selling organization. The annual food sale or banquet exemption does not apply to sales of alcoholic beverages or non-food items (e. is not held in a restaurant. hotel or similar place of business. including beer.g.tx. cakes. S A L E S A N D U S E TA X event is not professionally catered. the food sale must: • be an annual event. Of course. • be non-commercial in every respect (that is.state. and the food is prepared.us • Window on State Government: www. Examples of such items include cookie dough. however.S c h o o l F u n d r a i sers and Texas Sales Tax BULLETIN Nontaxable Food Items Sales tax is not due on nontaxable food items. The tax is based on the item’s actual retail selling price less any cash discount given at the time of the sale (e. and • not be held in competition with a retailer at the same event who must collect tax on food and beverage sales. Bakery Items Bakery products (including but not limited to pies. meat sticks. Nontaxable Sales Some items are not subject to sales tax no matter who sells them. fresh fruit and mixes packaged for preparation at home. Taxable services are listed in “Taxable Services” (Tax Publication 96-259.g. Magazine Subscriptions Subscriptions to magazines entered as periodicalsclass (formerly called second-class) mail and sold for six months or more are exempt from sales tax.) Car Washes Washing a car is not a taxable service under the Texas Tax Code.window. Gift Certificates and Passbooks Sales of intangibles such as gift certificates and coupon passbooks are not subject to sales
[email protected]. manicure or facial. while sales of beer and wine made by a beer and wineonly permit holder are subject to sales tax. cheese spreads. help@cpa. PTOs. but exclude all public and private educational organizations.us • Window on State Government: www. Items that contain printed materials that can be read but primarily serve other purposes or functions. dance. is exempt from sales tax. philanthropic. bookmarks. Donations (gifts) of cash or taxable items or services made to an organization are not taxable sales unless the exempt organization gives the donor a taxable item in exchange for the donation. directories. must collect tax on sales of printed reading materials unless the sale is designated as one of the organization’s tax-free fundraisers. binding and item placement. If the purchaser makes use of the item before it is donated. such as a school. charitable.S c h o o l F u n d r a i sers and Texas Sales Tax BULLETIN that will be donated to a qualifying organization. photographs and novelties. Schools may issue a resale certificate in lieu of paying tax to suppliers when purchasing taxable items to sell. if a school sells uniforms.12 . other than the exemptions previously identified. before the individual makes any use of the items. This means that PTAs. The school may purchase the uniforms tax-free for resale to the drill team members. the purchaser is responsible for paying or accruing tax on the item’s purchase price. such as school logo t-shirts. For example. magazines. The table on the following page is a short list of examples of taxable and nontaxable sales. A district must collect tax on the sales price of taxable items when selling them to students or to others. Sales to Students Generally. schools and associated groups must collect.us 5 C1. however.tx. School districts. it must collect tax on the sales unless it designates their sale as one of its two one-day tax-free sales. historical. Periodicals and Writings Periodicals and writings (reading materials including those presented on audio tape. scientific or other similar organization not operated for profit. The exemption certificate must state that the taxable item is being purchased by the individual for donation to an exempt organization and must clearly identify the organization accepting the a donation (see Tax Code Section 151. calendars. A “similar” organization must be organized for a benevolent purpose and must not be operated for profit. Similar organizations include PTAs. schools and school groups. athletic event or musical concert is exempt.tx. the sale of an admission ticket to a school carnival. PTSAs and PTSOs. gloves and shoes to drill team members. For example. report and remit sales tax on taxable items that they sell or taxable services they provide to others. books.window.155[b]). S A L E S A N D U S E TA X 501(c)(7) organization. The qualifying organization may issue a properly completed resale certificate to the printer in lieu of paying tax on charges for printing. including sales made to students. brochures and newsletters without collecting sales tax.state.state. PTOs. and the item is of proportionate or equal value to the donation. PTSAs and PTSOs may publish and sell printed reading materials such as yearbooks. Donations A purchaser using personal funds may give an exemption certificate to vendors when buying taxable items Susan Combs • Texas Comptroller of Public Accounts Tax Help: tax. are subject to sales tax unless sold during a qualifying and designated tax-free sale or auction. Schools may issue an exemption certificate in lieu of paying tax when purchasing taxable items for their use or for giving away to students or others as part of a course of instruction. videotape and computer disk) are exempt from tax if published and distributed by a religious. sex. such as hamsters. cats and dogs Publications such as football. (512) 475-0900 (FAX). “Exempt Organizations” Rule 3. basketball or volleyball programs Automobile repair parts (a separately stated charge for parts is taxable. or call Tax Assistance at (800) 531-5441 and ask for the Exempt Organizations Section. musical instruments. Internal Revenue Service at (877) 829-5500 or online at http://www. Food Service” Rule 3. In compliance with the Americans with Disabilities Act. calculators and computers Horticultural products such as flower arrangements. Food Products. manicures and pedicures Parking permits for public school students. Tax Publication 96-259. mice.298. Sign up to receive e-mail updates on the Comptroller topics of your choice at www. programs or activities.window.us • Window on State Government: www.S c h o o l F u n d r a i sers and Texas Sales Tax BULLETIN NONTAXABLE Rental of real property such as a gymnasium. For information on how to apply for federal exemptions. or disability in employment or in the provision of any services. this document may be requested in alternative formats by calling the toll-free number listed at the bottom of Page 1 or by calling (512) 463-4600 in Austin.299.322. You can also obtain an application by calling (800) 252-5555 or by visiting one of our enforcement field offices. see: Rule 3. color.state. Publishers. the products of which ordinarily constitute food for human consumption Cosmetology services such as haircuts. conditioner and nail polish sold to customers Parking permits for the general public Animals that do not ordinarily constitute food or food products. “Seller’s and Purchaser’s Responsibilities” Rule 3. national origin.state. “Newspapers. carnations. Meals. shampoo. Magazines.us/subscribe.tx.help@cpa. library or cafeteria Agricultural products (plants and seeds). auditorium. yearbooks. faculty and staff Farm animals such as pigs.state. age.state. roses. Exempt Writings” Tax Publication 96-122.286. newspapers Automobile repair (a lump-sum charge for parts and labor) Car washes Magazine subscriptions for six months or longer S A L E S A N D U S E TA X TAXABLE Rental of tangible personal property such as locks. For questions about an organization’s Texas taxexempt status.tx.us C1. contact the U.S. cows. An application also can be downloaded from our Tax Forms Online page. please use our Texas Tax-Exempt Entity Search.gov/. “Exempt Organizations . “Taxable Services” Please use our Texas Online Sales Tax Registration System to apply for a sales tax permit. write to exempt. The Texas Comptroller of Public Accounts is an equal opportunity employer and does not discriminate on the basis of race. chickens and other livestock Sales of advertising space in athletic programs. 6 Susan Combs • Texas Comptroller of Public Accounts Tax Help: tax.Sales and Purchases” — Frequently Asked Questions section provides information about school organizations applying for exemption from state taxes. holiday greenery and poinsettias Cosmetology products such as shampoo.tx.irs. “Food. “Amusement Services” Rule 3.us. a separately stated charge for repair labor is not taxable) Car carpet shampooing Magazines (single issue or subscription less than six months) Need More Information? For more
[email protected]. religion.13 .window. 00000000-01 C2. Treasurer Cedar Springs Elementary PTO. Inc. Inc. TX 66599 Cedar Springs Elementary PTO.1 11/02/2009 .June Cleaver. PMB 5899 Wallingford. 2 11/02/2009 . 01111111 C2. Inc.Cedar Springs Elementary PTO. TX 77065-6584 1-30-4686457-1 x E 1-30-4686457-1 le p am 05/01/2008 Mary Smith C2.3 11/02/2009 .TEXAS SALES AND USE TAX PERMIT ANOTHER FUND-RAISER BOOSTER CLUB PO Box 26584 Houston. C.1 .3. 3.C.2 . . A tax-exempt organization must make available for public inspection its approved application for recognition of exemption with all supporting documents available and its last three annual information returns. Therefore. please go to www. by calling 1-800-829-4933. You may also obtain an EIN via telephone.Application for Recognition of Exemption Section 501(c)(3) The following excerpts were downloaded from the IRS’ website.irs. Frequently asked questions about applying for exemption are also available. Application for Recognition of Exemption and the related instructions. (Organizations applying for recognition of exemption under a provision other than section 501(c)(3) generally use Form 1024. and its instructions to learn how to obtain an EIN.1 09/07/2010 . See Application Process for a step-by-step review of what an organization needs to know and to do in order to apply for recognition by the IRS of tax-exempt status. The information documented below is subject to change by the IRS. D1. most organizations use Form 1023.) The application must be complete and accompanied by the appropriate user fee.gov/charities To apply for recognition by the IRS of exempt status under section 501(c) of the Internal Revenue Code. The organization must provide copies of these documents upon request without charge (other than a reasonable fee for reproduction and copying costs). or by applying online. Application for Employer Identification Number. Penalties are provided for failure to comply with these requirements. See Form SS-4. even if it does not have any employees. The organization should also request an employer identification number. for the most up-to-date version of this information. Enter "None" or "N/A" if an entire Part does not apply. Complete Schedule A.irs. Make an entry on all total lines (including zero85 when appropriate).gov. Complete Schedule A (Form 990/990-EZ) if your organization is required to file Form 990 and is a § 501(c)(3). Tips When Filing Form 990 Complete Schedule B (Form 990. Balance Sheets. Reminder: Protect personal information: Do not include unnecessary personal identifying information. and Form 990. Question 2. An officer of the organization must sign the return. treasurer.Taxpayer Tips Common Errors Made by Exempt Organizations Tips When Filing Form 990 The following excerpts were downloaded from the IRS’ website. D1. this officer may be the president. if you checked Yes on Part IV. All organizations must complete all lines in both columns (A) and (B). trustee or assignee must sign any return he or she files for a corporation or association. as indicated in the letter recognizing your organization's tax-exempt status. Therefore. For a corporation or association. for the most up-to-date version of this information. reconciliation sheets and schedules are attached. A receiver. Part IV-A. line 1. Make sure you indicate the correct IRC subsection for your organization. All organizations must complete and attach Schedule B or certify the organization is not required to attach Schedule B by checking Yes in Part IV. Sign the return. please go to www.2 09/07/2010 . vice president. or 990-PF). or attach a schedule including the information and indicate on the applicable line that a schedule is attached. Support Schedule. Double check your return to make sure all required pages. Attachments. Double-check the accuracy of your EIN. § 501(f). § 501(e). "No" or "N/A" to each question. The information documented below is subject to change by the IRS. Include a list of subordinates if filing a group return. For a trust. the authorized trustee(s) must sign. asst. Part X. or indicate on those lines "N/A" (not applicable). Be sure to do the following: Complete all applicable parts and line items. Complete Form 990. § 501(k) or § 501(n) organizations or a § 4947(a)(1) nonexempt charitable trust. Answer "Yes". chief accounting officer or tax officer. Tax Period and Group Exemption Number (GEN) (if applicable). treasurer. 990-EZ. Part IV-A. asst.3 09/07/2010 . An officer of the organization must sign the return. if you checked a box (or should have checked a box) on line 10. For a corporation or association. Unless specifically accepted. vice president. 990-EZ. Reminder: Protect Personal Information: Do not include unnecessary personal identifying information. 11 or 12 of Schedule A. Sign the return. D1. Form 990-EZ. Answer "Yes". "No" or "N/A" to each question. § 501(f). treasurer. 6(b). please go to www. Indicate "N/A" on lines that do not apply. for the most up-to-date version of this information. All organizations must complete and attach Schedule B or certify the organization is not required to attach Schedule B by checking the box in Item H. File Form 990 instead of Form 990-EZ if your organization's gross receipts (total of Form 990-EZ. All organizations. For a trust. Be sure to: Complete all applicable line items. Be sure to include Schedule A. or 990-PF). chief accounting officer or tax officer. Complete Schedule A (Form 990) if your organization is required to file Form 990 and is a § 501(c)(3). The information documented below is subject to change by the IRS. if required. A receiver. the authorized trustee(s) must sign. this officer may be the president. Balance Sheets. Reason for Non-Private Foundation Status. treasurer. Part I. an organization may not submit a substitute balance sheet. Complete Schedule A. Make sure you indicate the correct IRC subsection for your organization. except those meeting one of the limited exceptions set out in General Instruction F. Enter "None" or "N/A" if an entire part does not apply. Complete Part II. § 501(e). Form 990/990-EZ. Part IV-A.gov.Taxpayer Tips Common Errors Made by Exempt Organizations Tips When Filing Form 990-EZ The following excerpts were downloaded from the IRS’ website. Lines 5(b). Support Schedule. All organizations must complete all lines both columns (A) and (B) of Form 990-EZ Part II and may not submit a substitute balance sheet. must complete both column (A) and (B) of Part II. trustee or assignee must sign any return he or she files for a corporation or association. 7(b) and 9) during the year exceed the amounts described in Filing Phase-In. Make an entry on all total lines (including zero when appropriate). Tips When Filing Form 990-EZ Complete Schedule B (Form 990. Double-check the accuracy of your EIN and Tax Period. § 501(k) or § 501(n) organizations or a § 4947(a)(1) nonexempt charitable trust. Therefore.irs. and on any prior returns filed? Number 8. Some lines require supporting schedules. If you haven't started an activity yet. hospitals. Did you provide enough information on the activities to show us how your exempt purpose will be achieved? Please don't restate your purpose. d. You are not required to describe activities that are merely speculative at this time. Did you complete all required pages? To make a determination.irs. c. Number 10. b. Does the fiscal year ending date stated on the application agree with the fiscal year ending date stated in the by-laws. You should consider a "who.Top Ten Reasons for Delays in Processing Exempt Organization Applications (Article dated September 19. develop your plans well enough that we can have a clear understanding of how it will operate. Number 5. Number 7. mailing addresses.4 09/07/2010 . supporting organizations. In what month does the annual accounting period end? Applications should indicate the end of their fiscal year. scholarships. annual compensation. Did you provide the required information on the principal officers and board of directors? Applications should list the following information concerning the governing officials: a. please go to www. You should explain past. based on how long your organization has existed. Is there enough financial data? See the instructions to Form 1023 or Form 1024 to determine how much information you need to provide. but explain the specific activities you will carry on to achieve that purpose. On Form 1023. the information contained on the pages and schedules of Form 1023 and Form 1024 is necessary. D1. It is a good idea to check for consistency.gov/charities. on the financial statements. when. there are various schedules and pages that must be filled out for churches. 2007) The following excerpts were downloaded from the IRS’ website. and planned activities. The information documented below is subject to change by the IRS. what. Number 9. for the most up-to-date version of this information. where and why" approach. Number 6. titles and positions. Therefore. and certain other organizations. schools. Did you complete all required schedules? You should check the line items on the financial statements. names. present. Neither a stamped signature nor a faxed signature is permitted. or other authorized individual in a similar capacity sign the Form 1023 or Form 1024? Generally.5 09/07/2010 . Did you attach a complete copy of your organizing document and all amendments? If the applicant is a corporation. it should have a similar organizing document. D1. it must at the minimum state: the legal name. vice president. For section 501(c)(3) applicants. or any other document that sets out the organization's rules of operation. the purposes. Now that you know the ten most common pitfalls in the EO application process. principal officer. but only if adopted. INCORRECT OR NO USER FEE! See our user fee page for more information. Whatever the document is called. The document should be signed by at least two members of the organization. Number 2. The person signing the application must indicate his or her title or other authority to sign. this would be a copy of the articles of incorporation that shows it has been filed with and approved by the state. or bylaws. This could be a constitution. Number 3. . If you have adopted by-laws. there is a good chance your organization could be recognized as exempt with no further contact. A trust document must be signed by the trustees and show the date of formation. we hope you can avoid them. If the applicant is not incorporated. If your application is completed correctly initially. a principal officer is the president.Top Ten Reasons for Delays in Processing Exempt Organization Applications Number 4. If there is contact. articles of association. Did a director. . did you submit a copy? You need to provide a copy of your by-laws. code of regulations. trustee. and the date of adoption. the agent can address the technical issues that need to be resolved without taking up your time trying to just get a complete application. the organizing document must comply with the organizational test for exemption The Number 1 reason for delays in processing exempt organization applications is . and sent with all required documents and schedules. or treasurer. A taxpayer's representative may not sign the application. secretary. 30-4686457 ANOTHER FUND-RAISER BOOSTER CLUB PO Box 26584 Houston. TX 77065-6584 1 x E le p m a D2.1 08/01/2008 . TX 77065-6584 x E le p m a D2.2 08/01/2008 .30-46864571 ANOTHER FUND-RAISER BOOSTER CLUB PO BOX 26584 Houston. Another Fund-Raiser Booster Club . Mary Smith Judy Jones Sue Typist Joe Moneybags . x E le p m a D2.5 08/01/2008 . x E le p m a D2.6 08/01/2008 . 7 08/01/2008 .x E le p m a D2. x E le p m a D2.8 08/01/2008 . 9 08/01/2008 .x E le p m a D2. 10 08/01/2008 .x E le p m a D2. 11 08/01/2008 .x E le p m a D2. x E le p m a D2.12 08/01/2008 . 13 08/01/2008 .x E le p m a D2. 14 08/01/2008 .x E le p m a D2. x E le p m a D2.15 08/01/2008 . 16 08/01/2008 .x E le p m a D2. x E le p m a D2.17 08/01/2008 . 18 08/01/2008 .x E le p m a D2. 19 08/01/2008 .x E le p m a D2. x E le p m a D2.20 08/01/2008 . x E le p m a D2.21 08/01/2008 . x E le p m a D2.22 08/01/2008 . x E le p m a D2.23 08/01/2008 . x E le p m a D2.24 08/01/2008 . x E le p m a D2.25 08/01/2008 . 26 08/01/2008 .x E le p m a D2. x E le p m a D2.27 08/01/2008 . x E le p m a D2.28 08/01/2008 . 29 08/01/2008 .x E le p m a D2. Happy.00-0012345 PROPS c/o Mary Smith 12345 Happy Ln. 2011 D2. IA 77777 May 31 May 31.30 08/01/2008 . x E le p m a D2.31 08/01/2008 . x E le p m a D2.32 08/01/2008 . x E le p m a D2.33 08/01/2008 . x E le p m a D2.34 08/01/2008 . 35 08/01/2008 .x E le p m a D2. x E le p m a D2.36 08/01/2008 . We hope these guidelines have helped your organization through the various processes and trials of becoming a Booster Club and being in compliance with all the appropriate agencies. Director of Internal Audit and Pat Stefan. Please contact our office if you have any questions or need other assistance. Thank you for using these guidelines and good luck in your endeavors! Carol Oman. Internal Auditor III The End 09/07/2010 .