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BOOSTER CLUB GUIDELINES
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
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
net 281-517-6367 281-807-8140 281-517-2178 (fax) antwanette. Flyers. TX 77095 Ralph Funk.net patricia.newman@cfisd. 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. Principal Delia Baker.net 281-463-5325 email@example.com 281-897-4081 carol. Choir.stefan@cfisd. Principal Charlotte Krysinski. Secretary Phone: 713-896-3442 Fax: 713-896-3438 Cheryl Johns.edwards@cfisd. TX 77040 Langham Creek High School 17610 FM 529 Houston.peil@cfisd.Contact List Jersey Village High School 7600 Solomon Street Houston.net 281-897-4117 larry.net 281-897-4111 281-517-6537 firstname.lastname@example.org@cfisd. Drill Team. and Records Manager Financial Reports and Fund-Raisers Marty Edwards Director of General Administration terry. and Orchestra Larry Matysiak Director of Secondary Music Drama / Theater Arts Antwanette Hill Director of Instruction Facilities Use Kathy Newman Facilities Use.net iii 09/07/2010 .
and Franchise Tax) Texas Comptroller’s Office General Information www.tx.edu 512-471-5883 Sales Tax (Sales Tax Permit.cpa.us/taxinfo/sales/index.uil.us 713-223-5886 email@example.com 281-517-2123 firstname.lastname@example.org@cfisd.state.net 281-894-3950 State Competitions and Rules University Interscholastic League (UIL) Incorporations Texas Secretary of State Raffles Texas Attorney General email@example.com 281-856-1543 pamela.tx.tx. Sales Tax Reports.net 281-897-4036 ami. Sales Tax Exemption.oag.html (includes Searchable Taxpayer Information Databases) 1-800-252-5555 iv 09/07/2010 .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. Planning & Community Relations Volunteers Pam Scott Director of Partners in Education david.us 512-463-5555 www.
irs.gov (Select Forms & Publications) 1-800-829-1040 1-877-829-5500 (toll-free) 1-800-829-3676 v 09/07/2010 .Contact List Other Important Phone Numbers Sales Tax (Continued) Texas Comptroller’s Office Exempt Organizations Department www.state.gov (Select Charities & Non-Profits) Tax Forms & Publications www.html 1-800-531-5441 ext. 34142 Federal IRS Exempt Status as a 501(c)(3) Organization and Tax Returns Internal Revenue Service (IRS) General Information www.irs.cpa.tx.us/taxinfo/exempt/index.irs.gov Tax-exempt Organizations www.
................6 7.............................. Federal Regulatory Information ........................................1 Life Cycle of a Public Charity .. 4...........3 7.....................3 Incorporation of a Non-Profit Organization........................................................................................................................... 7........................................................................................... Taking Care of Business Taking Care of Business Overview ..............................3 7.4 7........ 2.................................................................................1 Booster Club Registration & Approval Form ....................... University Interscholastic League (UIL) Booster Club Guidelines .............................................................................12 5....................................................................................................17 09/07/2010 ............................................... 4................................. 3.........1 5.................................................7 6.............................................................................................. Facilities Use.............................................................. Bank Accounts ......................................................................................................................... 1..........................................2 6................................................................................................................ ii Introduction ........9 5.......................................................................4 7........................................... i Contact List . Carry-Over Balances................................................................................................................................ Booster Club Information Sheet .....................................Table of Contents Page # Letter from the Superintendent ............................................................ Day-to-Day Responsibilities Day-to-Day Responsibilities Overview ..2 5.............. Contributions / Donations ............................. Financial Aid Guidelines ....................................7 5............................................................................................... 3..................................6 Following the Rules Authoritative Guidelines Overview.....1 Do I Really Want a Booster Club? Questions to Answer Before You Commit...................... District Board Policy GE (Local)............................................................................................................................................................... Accounting Procedures ....................... 4...............................................5 6........................................................................... State Regulatory Information ....................... Financial Report Information & Formats............... Review Report Information & Formats ...........................................................1 Booster Club Checklist...................................3 Creating Your Own Identity Creating Your Own Identity Overview.............1 7...........................................1 6.......
.......................................................................................7 A1.......19 A1....... Raffles ........................Table of Contents Page # Day-to-Day Responsibilities (continued) Flyers .......................................................................................................................................................................................................................................................................................................21 7.................. Student Fines and Fees List ...14 7......................................... Notice to the IRS of Change in Officers/Board Members.......................................10 7...............................................................................12 A1................................13 7.......... Record Retention .. Paying and Reporting of Workers (District Employees or Others) ...... Insurance ...........................................................................................7 7.....19 7............................... Financial Aid Guidelines...........................................1 Fund-Raising Activity Report ....................................... Bylaws of a Corporation...................... Mailing Address...................................................................... District Examples Contribution Acknowledgment Form.................... Bylaws of an Association ..................... Sales Tax...................................... Members ...............................12 7............................... Notice to the Bank of Changes in Authorized Account Signers ... B1.................................................................................................. B2..................................................11 7... Appendix Booster Clubs Examples Articles of Association ...... Membership Dues .20 A1............................7 7................ Money Handling Procedures.................................11 7..............11 7...................................................... Articles of Incorporation .....17 7............................. Volunteers Hours ............................................................................16 A1................10 7.................................................................1 Forms Authorization for Signer on PTO & Booster Club Bank Accounts...................................................20 7......................... Notice to the Texas Comptroller of Change in Officers/Board Members...............................................3 A1...............................................................................................20 Page 2 09/07/2010 ........2 A1...................................................................................................................................................................................................................... Treasurer’s Report .................1 A1.......................................... Fund-Raisers for Individuals or Families............................................................................................................. Project Prom Incentive.......................................................................... Fund-Raisers .................... B2.........................................14 7....................20 7.................................................................................................................................
................................................1 D2...................8 Examples Approval of Articles of Incorporation....1 Taxpayer Tips: Common Errors Made by Exempt Organizations – Tips When Filing Form 990 ... C1. Determination Letter ..................................... C3..............2 Taxpayer Tips: Common Errors Made by Exempt Organizations – Tips When Filing Form 990-EZ............................................................................................................... D1................................................................ D1................................ C2.............................................................................................................2 Texas Sales and Use Tax Permit ..................2 Internal Revenue Service (IRS) Helpful Information Application for Recognition of Exemption – Section 501(c)(3) ................. D1..... D1.....................3 Top Ten Reasons for Delays in Processing Exempt Organization Applications ...................... Acknowledgement of Your Application ...............................2 D2..... Form 1023 – Application for Recognition of Exemption .....................................4 Examples Employer Identification Number (EIN) Assignment Notice .... C2...1 Texas Tax Exemptions for Nonprofit Organizations ............1 Certificate of Incorporation..................... C2.......................Table of Contents Page # State of Texas Helpful Information Texas Sales Tax – Frequently Asked Questions ........... C3................................................3 Forms Texas Sales and Use Tax Exemption Certification ....................................................3 D2.............1 Texas Sales and Use Tax Resale Certificate ..6 Sales & Use Tax Bulletin – School Fundraisers and Texas Sales Tax ...........30 Page 3 09/07/2010 ....................................................... D2................................... C1................. C1............................................
and state and federal regulations. it includes checklists. The main responsibilities of a Booster Club. Sponsor / Liaison .A Booster Club is responsible for supporting a student group. however. 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. regulations. The parents and the Booster Club may provide suggestions about particular activities. such as District policies and guidelines. state. University Interscholastic League (UIL). activity. 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 Sponsor is a District employee who serves as the liaison between the Booster Club and the District. In addition. laws. Therefore. therefore. 1. Principal or Administrator . the Sponsor shall approve all student / school-related activities of the Booster Club in accordance with Board Policy GE (Local). Booster Clubs support a particular student group or program through a Sponsor.The Principal or Administrator is responsible for approving the activities of the student group and some activities of the related Booster Club. and financial support that the Booster Clubs provide to our students. policies. 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. The Guidelines includes some items that must be followed by all Booster Clubs. it is a separate entity from the District. UIL guidelines. under the supervision of the Principal or Administrator.A designated Sponsor of a student group serves as the liaison between the Booster Club and the District. Students enrich their education and expand their horizons when they participate in school activities and programs. Booster Clubs are parent organizations established to promote school programs or complement student groups or activities. Internal Audit is not an authority on specific accounting situations or tax-related issues concerning individual Booster Clubs.1 08/01/2008 . and examples for Booster Clubs to follow. Therefore. effort. however. However. suggestions.Introduction The Booster Club Guidelines were prepared to assist Booster Clubs in meeting District. 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. 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. the Booster Club does not have the authority to decide the activities or trips in which the student group will participate. Other items include suggestions for improving your organization related to day-to-day activities. a Sponsor. Booster Clubs should obtain competent independent counsel on accounting and tax matters related to their specific circumstances. the Sponsor should work very closely with the Booster Club and provide guidance to the organization. and a Principal or Administrator are indicated below: Booster Club . The Booster Club works through the Sponsor to provide assistance for the planned activities of the student group. the District greatly appreciates the time. or program. and federal requirements. Even though a Booster Club works very closely with the District. Important: The Internal Audit Department of Cypress-Fairbanks Independent School District prepared these Guidelines to assist Booster Clubs in following various policies and regulations.
08/01/2008 .Included in this section: A comprehensive checklist that all Booster Clubs should complete.
Office Held . In addition. event liability.11 5. 2. and/or fidelity (bond) insurance coverage policies. bylaws.Home Phone Number .Work Phone Number .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.11 5. State and Zip Code Insurance 4.4 3.15 5.2 – 6. The Booster Club’s official mailing address is: Official Name PO Box / Street City.Cell Phone Number .1 09/07/2010 . In addition. The Booster Club should consider purchasing a general liability policy.Mailing Address . and operating procedures when they are originated. information you document here will help future officers continue your compliance efforts. Provide the School Principal or Administrator (if the Booster Club is not located at a school) with the Booster Club’s constitution.25 7. 7.Name . provide updated copies as changes are made.E-mail Address 2.3 6. Page Reference General 1. The list should include: . 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.
Name and phone number of organization’s representative.) If you are entitled to the two “one-day. and place(s) of the activity. For the fund-raisers planned for the current school year. In addition.3 5. Name and phone number of person(s) in charge of the fund-raiser. If your Booster Club has received a tax-exemption from the Texas Comptroller’s Office.8 6. provide the Sponsor with detailed fund-raising information at least 30 days prior to the fund-raising event. Name of the sponsoring organization. carnival) Date(s).e.8 7.11 2. and .5 7.Booster Club Checklist Page Reference Fund-Raisers 5..Name and phone number of the person(s) who will be handling the money for the fund-raiser. The detailed fund-raising information should include: Purpose of the fund-raiser. 5. candy sale.2 09/07/2010 . Type of fund-raising activity (i. taxfree” sales/auction days per calendar year. if not already provided on the Permission Request. indicate the “one-day. 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. (See Checklist item #21. your organization is entitled to two (2) “one-day. tax-free” sales days.5 7. 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. 5.14 6. time(s).
and do not use the District’s EIN. Fund-raising is an opportunity to generate revenue for the Booster Club as a group. The bank accounts used by the Booster Club include: Bank Name Account Number 10. One member or student should not receive a larger benefit from fundraising than another.19 – 5.8 – 7. discontinue this practice. discontinue this requirement.19 7.1 2.2 5. The Booster Club cannot use individual accounts to credit an individual for funds raised. If your Club is using individual accounts currently. If your Club is currently requiring fund-raising.20 7.Booster Club Checklist Page Reference 8.9 Financial Matters General 9.4 – 5. In addition. Therefore. revenues should be recorded in a group account where all members or students have the same opportunity to benefit equally from the revenues. not individuals. The identification number used for the bank accounts is as follows: 5.18 – 5. if a member or student chooses not to participate in the fund-raiser. Do not use an individual’s social security number. 5. For example.5 5. The Booster Club’s Employee Identification Number (EIN) should be used. The Booster Club cannot require members or students to fund-raise or raise a certain amount.3 D2. a student’s ability to attend a trip cannot be based on raising a certain amount of money. Determine the identification number used for the bank accounts. that person still receives an equal benefit from the revenues generated.3 09/07/2010 .
19 13. Determine whether your organization is in good standing with the Texas Comptroller’s Office by calling their office. See Authorization for Signer on PTO & Booster Club Bank Accounts in the Appendix. including an authorized signer on the bank account.Booster Club Checklist Page Reference 11. 2.1 Example: June Bugg President | No | | | | IMPORTANT District employees may serve parent organizations as a general member or as a member of its executive board.19 6. except for the position of Treasurer.11 7.4 09/07/2010 . 12. Update the authorized signers on your bank accounts as officers change. The current authorized signers include the following Booster Club officers: Name of Person Officer Position Held / District Employee? (Yes/No) 5. District employees shall not serve in a capacity over the organization’s financial affairs.4 B2.3 7.11 7. 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. Determine whether your organization is in good standing with the IRS by calling the Exempt Organization Section of the IRS. 6.3 – 7. The written approval must be kept on file with the District’s internal auditor.
Note: Request a W-9 form from the individual or business before issuing them a check.5 09/07/2010 .1 6.3 7.8 17. 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. 16.9 – 6. and to the Director of General Administration by September 15. send information to the IRS by February 28.11 7. 5.4 6. 2010. 6.5 – 6. District employees hired by the Booster Club must be paid directly by the Booster Club and not through the District. including the Financial Report to the Sponsor. If 1099 forms are issued. the School Principal or Administrator (if the Booster Club is not located at a school).20 5.1 6. File the Booster Club’s Texas Sales Tax Reports as required.4 6. and to the Director of General Administration by September 15.4 19. Provide a copy of the written Booster Club Financial Report for the applicable school year to the Sponsor.16 18. the School Principal or Administrator (if the Booster Club is not located at a school).14 15. Present a written Treasurer’s Report at every meeting that includes the general membership. 5. For example. of each year. The Booster Club files its Texas Sales Tax Report: Monthly Quarterly Seasonal (Semi-Annually) (Not available for new Booster Clubs) Annually 5. a report for the 2009-10 school year should be submitted by September 15.13 – 7. The Texas Comptroller’s Office determines how often the report needs to be filed and is subject to change. of each year. of each year along with the Financial Report. of each year. Issue 1099 forms to applicable individuals or businesses by January 31.14 2. Provide a copy of the Booster Club Review Report that indicates the results of the review of the organization’s financial information.Booster Club Checklist Page Reference 14. 5.
Determine whether your organization has obtained a tax-exemption from the Texas Comptroller’s Office. each year. 21. Yes No 5. If the Booster Club is incorporated.3 State Regulatory Information The following items need to be done only once since the origination of the Booster Club.23 – 5. Determine whether your organization has obtained a Texas Sales Tax Permit. The Booster Club has received a tax-exemption from the Texas Comptroller’s Office: Yes No 5. determine whether your organization has obtained an exemption from Texas franchise tax from the Texas Comptroller’s Office. File the IRS Form 990. 990-EZ. tax-free” sales/auction days. or 990-N.14 5.2 D1. 23.15 If the Booster Club is incorporated. 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). Return of Organization Exempt from Income Tax. Official Year-end: ____/____/____ Due Date for Return: ___/___/____ 5. The Booster Club’s sales tax permit number is________________________ 22.13 C2.3 Reminder: Only those organizations with a tax-exemption from the Texas Comptroller’s Office are entitled to the two (2) “one-day.14 – 5.6 09/07/2010 .Booster Club Checklist Page Reference 20.13 – 5. an exemption from Texas franchise tax was obtained from the Texas Comptroller’s Office: Yes No 2.24 D1.
29 5. If you have applied for the tax-exempt status but you have not received your Determination Letter. User Fee for Tax-Exempt Organization Determination Letter Request. and the Form 8718. Call the IRS to determine the status of your application. The EIN for the Booster Club is:___________________________________ 25.2 5. Determine whether the Booster Club has received tax-exempt status as a public 501(c)(3) organization from the IRS.18 – 5. If the IRS has approved the Clubs’ tax-exempt status. 26. Submit these forms and the applicable fee to the IRS.11 D2. a Determination Letter would have been received from the IRS.36 5. If you have any questions concerning the above items.2 6.1 If you have not applied for the tax-exempt status.19 D2. As your Booster Club President or Treasurer changes. you should receive an Acknowledgment of Your Request. The Booster Club received its tax-exempt status as a public 501(c)(3) organization from the IRS: Yes No D2. please refer to the applicable sections of this handbook. 24. Obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). complete the IRS Form 1023.Booster Club Checklist Page Reference Federal Regulatory Information The following items need to be done only once since the origination of the Booster Club. 2.3 – D2.7 09/07/2010 .30 – D2. give the applicable Booster Club Guidelines handbook to the new officer(s). Application for Recognition of Exemption.
Included in this section: Questions to Answer Before You Commit Booster Club Registration & Approval Form 08/01/2008 .
the District would be responsible for all of the accounting and legal responsibilities of the Student Activity Fund. 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). All money generated would be considered the student group’s money and would benefit only that group of students. training. Please remember that parents do not have to form a Booster Club to support a student group. In addition. The appropriate School Principal or Administrator must approve. Therefore. however. in writing.) 6. What can a Booster Club accomplish that cannot be achieved through the use of a Student Activity Fund? 3. 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. 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. Have I spoken with other similar Booster Clubs to determine what benefits/problems they have experienced? 8. (See Booster Club Registration & Approval Form in this section. 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. the formation of a Booster Club before the Club takes any further action to create a unique identity.1 09/07/2010 . they also require a strong commitment from members to work properly. Why do I want a Booster Club? 2. The following are some questions to consider when deciding whether or not to form a Booster Club: 1.Questions to Answer Before You Commit Booster Clubs provide an important support function to student groups. and paperwork to be in compliance with all District. 1. deciding whether or not to form a Booster Club is a difficult decision that requires careful consideration of the pros and cons of formation. Do I have time to commit to a Booster Club? 4. state. UIL. Am I willing to perform the necessary research.) 3. and federal regulations? (This includes submitting required information to the Texas Comptroller’s Office and the IRS. Have I read or will I read the rest of this handbook to discover my responsibilities once a Booster Club is formed? 7.
2. some of these documents could be lost or misplaced. Booster Clubs receive several important documents from these agencies throughout the year. 3. The District does not recommend using a home address since officers change frequently. The IRS mails forms and other correspondence to Booster Clubs periodically. a Booster Club could lose their tax-exempt status. Send a copy of the written approval to Internal Audit to notify us of the new Booster Club. 3.) 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. First. thereby also losing their tax-exemption with the State of Texas and possibly face fines and penalties. The address and box keys can be given easily to the new officers at the beginning of each new year. it is better to get this step done first.. Establish the Booster Club’s mailing address. the Booster Club should be aware that it may not receive mail in a timely manner when the school is closed (i. summer vacation and some holidays). the Texas Secretary of State. therefore. the IRS.2 09/07/2010 . and if the address changes 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. Please understand the importance of maintaining a consistent mailing address for the Booster Club. you will save time since you will not have to update your address each year to the District. Second.Questions to Answer Before You Commit If you want to form one of the following types of Booster Clubs. If the related school’s address is used as the Booster Club’s official address. Planning & Community Services and the Associate Superintendent for Human Resources and Student Services. the Texas Comptroller’s Office.e. Begin the process of creating your own identity with the State of Texas and the IRS. If these forms are not completed and returned to the IRS within a specific time period. 4. and your bank as you would if you used someone’s home address. (You will need to list an official mailing address on several state and federal forms when creating your identity as a Booster Club.
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. I have included a current list of officers or representatives with names. and e-mail addresses with this registration form. mailing addresses. 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.3 08/01/2008 . 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. titles. phone numbers.
(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. Please make copies of BOTH SIDES of this form for: The Sponsor The Principal or Administrator Internal Audit Department 3.Cypress-Fairbanks Independent School District Booster Club Registration & Approval Form APPROVAL OF BOOSTER CLUB: I. (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. ____________________________________.4 08/01/2008 . / 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 .
the following short summary lists the necessary steps in the order in which they should be completed. see the Life Cycle of a Public Charity immediately following this section. An association will prepare and sign an “Articles of Association” as an 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. 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. however.Creating Your Own Identity Overview This section of the Guidelines provides detailed information related to applying for permits and exemptions you will need. file for incorporation with the Texas Secretary of State before proceeding with Step 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. Apply for an Employer Identification Number (EIN) with the IRS. go to Step 3. As a supplement to these pages. use. 7. Some blank forms and examples of completed forms and other information are included in the Appendix to assist you in completing the steps. the booster club can open a bank account. this document will not be filed with the Texas Secretary of State. 3. have the general membership approve establishing the booster club and the booster club bylaws.1 09/07/2010 .) 4. If a corporation. unless the individuals are negligent in their duties. Decide if your Booster Club will be an association or a corporation and prepare the necessary organizing document. Then elect officers in accordance with the bylaws. 5. Benefits of Incorporation: Formalize organization and provide standardized operating procedures through Articles of Incorporation and Bylaws. At the first meeting. 1. In addition. skip to Step 4. (See the Incorporation of a Non-Profit Organization information. and franchise tax exemptions. A corporation will prepare and sign Form 202 (Certificate of Formation Nonprofit Corporation) to be filed with the Texas Secretary of State. If an association. The date the final document is signed by at least two officers or board members is considered the beginning date of the organization. Helps shield the individuals governing and operating the nonprofit organization from liabilities incurred by the organization. 2. Draft the booster club’s bylaws as soon as possible. A membership drive should occur to let parents know about the booster club and when the first membership meeting will be held. 4. For a corporation. 6. After receiving an EIN and electing officers.
10. Receive a Determination Letter (approximately 4-6 months later) stating you are a public 501(c)(3) tax-exempt organization. file for franchise tax-exemption with the Texas Comptroller’s Office. Correspond with the IRS if your bylaws need to be modified or if the IRS needs additional information to complete your approval process. Apply for an exemption from Texas sales. 16. 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.2 09/07/2010 . Pat yourself on the back for a job well done!! 4. You may also scan these documents and save to a CD. Receive a Letter of Acknowledgement from the IRS indicating receipt of your application and payment. 12. Send a copy of the Determination Letter to the Internal Audit Department. 13. 15. If you are incorporated. 14.Creating Your Own Identity Overview 8. and use tax with the Texas Comptroller’s Office. Apply for a Sales Tax Permit with the Texas State Comptroller’s Office. Read “Top Ten Reasons for Delays in Processing Exempt Organization Applications” in the Appendix before you submit your application!! 11. Apply for federal tax-exemption as a public 501(c)(3) organization with the IRS. 17. excise. 9. Make copies for several officers.
In addition. explanations. to making changes in its mission and purpose. please go to www. 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 Public Charity The following excerpts were downloaded from the IRS website.gov/charities Organizations that meet the requirements of Internal Revenue Code section 501(c)(3) are exempt from federal income tax as charitable organizations. contributions made to charitable organizations by individuals and corporations are deductible under Code section 170. to filing the required annual information returns.” The IRS web site includes examples of various documents found in the following sections. The information documented below is subject to change by the IRS.irs.3 09/07/2010 . 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. a public charity has numerous interactions with the IRS – from filing an application for recognition of tax-exempt status. guides. for the most up-to-date version of this information. During its existence. The IRS provides information. forms and publications on all of these subjects – they are available through this IRS Web site. Therefore.
4 09/07/2010 .Publicly Supported Organizations Help from the IRS o Application Process Step by Step o Customer Account Services o Publication 4220. 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. 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. 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. Applying for 501(c)(3) Tax-Exempt Status o Publication 557.Life Cycle of a Non-Profit Charity IRS Processing o While You Wait o Rulings and Determination Letters o Advance Rulings .
Charitable Contributions Substantiation and Disclosure Requirements Written acknowledgments Quid pro quo contributions Charity auctions o Noncash Contributions Donor ( Form 8283) Donee ( Form 8282) Publication 561.5 09/07/2010 . 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.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.
Questions on exemption procedures should be addressed to: Comptroller of Public Accounts Tax Assistance Exempt Organizations Section Austin. The secretary of state. the secretary of state will stamp the documents "filed". Two copies of the Certificate of Formation should be submitted to the secretary of state for filing. If the articles conform to law. titled "How to Apply for Recognition of Exemption for an Organization. Chapter 171. for the most up-todate version of this information.00. does not make such determinations. Texas 78774-0100 (512) 463-4600 or (800) 252-1381 TDD: (800) 248-4099 or (512) 463-4621 4. issue a certificate of formation and return the certificate and a stamped copy of the articles to the remitter. or officers [BOC. please go to http://www. The publication can be obtained from either the IRS or the Government Printing Office. 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. if a duplicate copy of the document was provided for such purpose. directors. however. The information documented below is subject to change by the Texas Secretary of State.tx. Subchapter B." describes the rules and procedures for non-profit organizations requesting exemption.Incorporation of a Non-Profit Organization The following excerpts were downloaded from the Texas Secretary of State’s website. Section 22. TAX EXEMPTION Not all non-profit corporations are entitled to exemption from state or federal taxes.001(5)].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”).state. The incorporator will need to order a “certified copy” of the certificate of formation to submit with the federal tax-exemption paperwork.6 09/07/2010 . "Non-Profit corporation" means a corporation no part of the income of which is distributable to members.sos. IRS Publication 557. Therefore. The filing fee for a non-profit corporation is $25. 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.
4. 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. failure to state that the corporation is a non-profit corporation. http://www. 2.state. There is a $25 filing fee for all non-profit corporations 5. “Forming a Nonprofit Tax-Exempt Corporation in Texas” published by the 2010 Texas C-Bar is available on the secretary of state website.tx. consult your attorney. The certified copy may be ordered simultaneously with the filing of the certificate of formation for approximately $1 per page. If you have specific legal questions.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 designation of less than three directors.sos.us/corp/forms_boc.sos. 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. the person has committed an offense. The offense is a Class A misdemeanor.state.shtml. Two copies of Form 202 should be submitted to the secretary of state.us/corp/nonprofit_org. Selection or completion of a form found on this web site is the responsibility of the user and the user's attorney. failure to properly execute the documents. COMMON ERRORS CAUSING REJECTION OF A PROPOSED FILING Common errors include: 1. 3. Use of this form is permissive. 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. The incorporator will need to order a “certified copy” of the certificate of formation to submit with the federal tax-exemption paperwork. EXECUTION REQUIREMENTS AND FEE 1. 4. or 3.tx.shtml and can also be completed on-line through SOSDirect. 2. The articles should be signed by ALL the incorporators. Form 202 (Certificate of Formation for a Nonprofit Corporation) is available on the secretary of state website at http://www.7 09/07/2010 .
EXECUTION REQUIREMENTS AND FEE 1. 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 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.tx. 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. 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.state. delete. 2. A corporation may amend its articles of incorporation to correct only those statements that contains an inaccurate or erroneous statement. acknowledged or verified. add. After the secretary of state files the certificate of correction. 4. or alter provisions of the articles of incorporation using Form 403 (Certificate of Correction). was defectively or erroneously signed.8 09/07/2010 .us/corp/forms_boc. sealed. Selection or completion of a form found on this web site is the responsibility of the user and the user's attorney.sos. the person has committed an offense.Incorporation of a Non-Profit Organization ARTICLES OF AMENDMENT FOR A NON-PROFIT CORPORATION Articles of amendment may be filed to add. the filing instrument is considered to have been corrected on the date the certificate of correction is filed. the governing law authorizes or requires to be included in the original filing instrument. consult your attorney. There is a $15 filing fee.shtml and can also be completed on-line through SOSDirect. A certificate of correction may not alter. Form 403 (Certificate of Correction) is available on the secretary of state website at http://www. The offense is a Class A misdemeanor. or delete a statement that by its alteration. If you have specific legal questions. 3. The certificate of correction must be signed by a person authorized to sign the certificate of formation.
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 .
IMPORTANT Booster Club officers are solely responsible for ensuring that their Booster Club is in compliance with District policies and guidelines. Some state regulations relate to state sales tax while other regulations involve becoming incorporated or involve the holding of a raffle. and regulations. This information is provided by the District’s Internal Audit Department. For specific questions. including any District employee. The following information is included in this section: District Board Policy GE (Local). Internal Audit is not an authority on specific accounting situations or tax-related issues concerning individual Booster Clubs. The School District has Board Policies and guidelines that must be followed by Booster Clubs. is not responsible for a Booster Club not complying with the various policies. In addition. 5. Booster Clubs should obtain competent independent counsel. 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. as well as guidelines that the School Principal or Administrator (if the Booster Club is not located at a school) may implement. Therefore. the District. and state and federal regulations. through the IRS. UIL guidelines.Authoritative Guidelines Overview Booster Clubs are governed by various entities. Therefore. guidelines.1 08/01/2008 . you should contact UIL directly. the Booster Clubs must follow the guidelines of the University Interscholastic League (UIL). such as a Certified Public Accountant (CPA) or an attorney. and the federal government. The cost of these services would be the Booster Club’s responsibility. to address accounting and tax matters related to their specific circumstances. however. the IRS and the Texas State Comptroller’s Office may be contacted for questions related to your organization’s specific situation. The state and federal regulatory information included in this section does not include all laws or rules that may apply to your particular situation. the State of Texas. Also.
Ensure that an organization’s sole function is to support the educational activities of the designated program area. As the responsible District employee. 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. Receive a copy of the organizing documents and bylaws of such organizations. Submit the organization’s EIN and a copy of the IRS’s Determination Letter to the District’s internal auditor. 4. All PTOs and booster clubs must: 1. 3. booster clubs. 2. Such organizations may not use the District’s tax identification number.2 09/09/2008 . Examples of parent or community organizations include PTOs. 5. Approve the formation of any such organization. If an organization loses its public 501(c)(3) tax-exempt status or if this tax-exempt status expires. 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.Employer Identification Number (EIN).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. The Superintendent’s designee for overseeing the activities of parent and community organizations is the principal of the campus where the organization functions. 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. 2. the principal shall: 1. and volunteer groups. SUPERINTENDENT’S DESIGNEE FORMATION All parent or community organizations must obtain a unique tax identification number . 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. 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.
between any parent group formed in connection with a student group and the District. The treasurer of the organization should prepare the financial report. File lists of organization activities for the coming year with the principal at a date established by the principal. Additional activities should be submitted at least 30 days prior to the event. including an authorized signer on the bank account. The written approval must be kept on file with the District’s internal auditor. The designated faculty sponsor acting as the liaison shall: 1. 2. except for the position of Treasurer. This approval must be requested and received each school year. File lists of officers of the respective organizations with the school principal and internal audit at the beginning of each school year. Work with such organizations to establish approved goals and student support activities for the respective organizations. AUTHORIZED SIGNERS District employees may serve parent organizations as a general member or as a member of its executive board. Each PTO and booster club must prepare a written report of actual revenues and expenditures (financial report) for the 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. 4. 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. under the supervision of the principal. 5. FINANCES At each PTO and booster club meeting that includes its general membership. to aid in the development of the master calendar for the school. the treasurer must present a written treasurer’s report of the money received and expended since the last report. 3.3 09/09/2008 . Approve all student/school-related activities of such organizations.Board Policy GE (Local) LIAISON The designated faculty sponsor of a student activity area shall serve as the liaison. District employees shall not serve in a capacity over the organization’s financial affairs. and revise such lists as officers change during the school year. The financial report and related financial information must be reviewed by either an organizational review committee or by an independent reviewer 5.
or the student activity area must receive an equal opportunity to benefit from the fund-raising activities. the sponsored student group. and the Director of General Administration by September 15 of each year. and District guidelines and shall be for the purpose of supporting the school program or group activity for which the organization was formed. If the 15th falls on a weekend or holiday. 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. their principal. individual accounts that credit individuals for their fund-raising efforts may not be used. Therefore. [See GKB] According to the IRS. not individuals. regardless of whether or not a person participated in the fund-raising activities. 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. The financial report and review report will not be audited by the district. related to an officer. In addition.Board Policy GE (Local) (i. Comply with administrative regulations and Board policy when offering money/gifts to the District [see CDC]. Therefore. revenues generated from fund-raising activities by tax-exempt organizations should benefit the organization. the due date would be the next working day following the weekend or holiday. or the Sponsor. All members of the organization.e. or student activity area as a whole. 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. PTOs must submit the annual financial report and review report to the Principal at their school by September 15 of each year. state. If the 15th falls on a weekend or holiday.4 09/09/2008 . Booster clubs must submit the annual financial report and review report to their sponsor. If an organizational review committee is used. CPA). tax-exempt organizations may not require people to participate in fund-raisers. 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. FUND-RAISING All community/school support organization fund-raising efforts shall be within federal. at least one reviewer should not be an officer. according to the IRS. the due date would be the next working day following the weekend or holiday. the sponsored student group.
5.e. Name and phone number of the person(s) in charge of the fundraiser. 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. carnival. 4. the criteria for financial hardship should not change to allow a particular individual to meet the criteria. Careful consideration should be given to limiting the number of major fund-raising activities involving students. Name of sponsoring organization and representative. All such activities require the approval of the designated sponsor(s) and the principal. data lines.5 09/09/2008 . Date(s). candy sale. 7. the student may then receive a benefit that others do not receive. An organization may establish written criteria for giving certain benefits to an individual with a financial hardship.Board Policy GE (Local) revenue was not raised. If a student meets the written criteria. 6. Type of fund-raising activity (i. plumbing. A person can not be penalized in any way for not fund-raising. 3.. FINANCIAL HARDSHIP CRITERIA Purpose of the fund-raiser. they shall notify the principal of their plans. Name and phone number of the person(s) who shall be handling the money for the fund-raiser. 2. Therefore. etc. a student who meets the financial hardship criteria may have the full amount of his/her trip paid by the organization. Name and phone number of the organization’s representative. However.). PURCHASES FOR THE SCHOOL Before parent groups or other groups working with the school purchase equipment for the schools. In the event that students pay a designated amount to attend a trip. etc. In consultation with the Superintendent or designee. Such a benefit is an approved exception by the IRS to having all members receive an equal opportunity to benefit from fund-raising activities. The approval and cost of any facility 5. 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. and place(s) of the activity. and the criteria must be established prior to a financial hardship situation arising. time(s). including computer hardware and software. the financial hardship criteria should be applied consistently to all recipients.
Encourage involvement by all parents of students participating in the supported activity. Have no authority in directing or influencing District employees in the administration of duties.6 09/09/2008 . 3. drill team. Submit a copy of current adopted bylaws and operating procedures to the principal. School-related booster organizations shall organize and function in a way that is consistent with the District’s philosophy and objectives. 5. choir. 2. Not be involved in decision. USE OF SCHOOL FACILITIES District-affiliated school-support PTOs or booster organizations may use District facilities with prior approval of the appropriate administrator. etc.or policy-making activities for a student group.e.. Comply with all UIL guidelines. Be limited to a single club/organization for each area of student activity. athletics. Bonfires shall be prohibited as school-related activities. and in accordance with UIL guidelines as applicable. All other parent groups may use District facilities in accordance with policy GKD. 6. band.Board Policy GE (Local) modifications needed should be considered before approving the equipment purchase. District booster clubs shall: 1. 4. Be voluntary and provide unified support for student activities of the school. All applicable facility usage fees may apply in accordance with GKD administrative regulations. within adopted Board policies. BONFIRES BOOSTER ORGANIZATIONS 5. i. 7.
The information documented below is subject to change by the UIL.University Interscholastic League (UIL) Booster Club Guidelines The following guidelines were downloaded from the UIL’s website.edu/policy/booster_clubs. please contact: Athletics: Drama: Music: NFL: JROTC: Larry Peil Antwanette Hill Larry Matysiak Ami Ruby Judy Reidy Director of Athletics Director of Instruction.uil/utexas.html If you have questions concerning UIL guidelines. for the most up-to-date version of this information.edu (Select Booster Club Guidelines) 512-471-5883 5. 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.utexas.7 09/07/2010 . please go to the UIL’s website at www.uil. Therefore.
Written Policies Booster clubs should develop and annually review policies to cover: *how to obtain administrative approval before beginning projects. Booster clubs must recognize this authority and work within a framework prescribed by the school administration. Plus. The fundraising role of booster clubs is particularly crucial in today’s economic climate. . Artistic commitment and a desire to excel are traits found in music participants.presidents: one vice 5. Interscholastic competition is a ﬁne way to encourage youngsters to enrich their education and expand their horizons. *bookkeeping and fund administration including process to obtain superintendent’s approval prior to raising or spending funds. one treasurer.8 Updated July 2010 University Interscholastic League Booster Club Guidelines Be they music. competition is fun! Role of the Superintendent Member schools make UIL rules and determine policies regarding penalties to schools. events and personnel are under the jurisdiction of the superintendent. Physical training and good health habits are essential to the best athletes. Self-motivation and intellectual curiosity are essential to the best academic participants. school district personnel and student participants. and three vice . *how to plan and publicize meetings. Leadership and citizenship experiences through school activities help prepare students for a useful and wholesome life. one secretary. The superintendent is solely responsible for the entire UIL program. booster clubs should exist to enrich students’ involvement in extracurricular activities without endangering their eligibility. Students learn to win without boasting and to lose without bitterness. *election of ofﬁcers (suggestion: one president. organizations (including the booster club). academic or athletic. ﬁne arts. Role of Booster Clubs Neighborhood patrons form booster clubs to help enrich the school’s participation in extracurricular activities. All school activities.| GENERAL GUIDELINES | The role of competition Participation teaches that it is a privilege and an honor to represent one’s school.
as part of the annual employment contract. treatment of ofﬁcials. athletics and ﬁne arts may not accept more than $500 in money. clinics. and that most of the money raised stays at home. *The district may pay a stipend. product or service from any source in recognition of or appreciation for coaching. Activities and projects should be investigated carefully before committing the school’s support. school sponsor or coach. rules for participation. judges. *Sales campaigns should be planned carefully to insure that the projects provide dollar value for items sold. *Fund-raising projects are subject to state law. *Unlike music and academic booster clubs. *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. *Individuals should be informed of the seriousness of violating the athletic amateur rule. athletic booster club funds shall not be used to support athletic camps. All meetings should be open to the public. It would be a violation for booster groups or individuals to pay for such costs directly. *Booster clubs should apprise school administrators of all club activities. and *plans to support the school regardless of success in competition. *Funds are to be used to support school activities. *Booster clubs do not have authority to direct the duties of a school district employee. These kinds of donations are often made to cover the cost of commercial transportation and to cover costs for out-of-town meals. Schools must give prior approval for any banquet or get-together given for students. private instruction or any activity outside of the school.. *public communication. The $500 limit is cumulative for a calendar year and is not speciﬁc to any one particular gift. including awards. winter and spring sports). Otherwise donations are often more rewarding than letting the major part of the Updated July 2010 $ . distributing and ﬁling minutes. Check t with school administrators before giving t s anything anyth to a student. It affects the entire community. ﬁxed at the beginning of the year. *proper interaction with ﬁne arts directors and academic and athletic coaches through the lines of authority as established by the school board. a coach can’t receive more money if a team or individual qualiﬁes to region or state. keeping the educational goals of competition at the forefront of all policies. In other words. not just members of the booster club. Booster clubs may make recommendations. *Minutes should be taken at each meeting and kept on ﬁle at the school. including petty cash or miscellaneous discretionary funds. guests. All fans. To provide such funding for non-school activities would violate UIL rules and the public trust through which funds are earned. *Community-wide sales campaigns should be coordinated through the school administration to minimize simultaneous sales campaigns. money go to outside promoters. methods of earning letters and all other criteria dealing with inter-school programs are under the jurisdiction of the local school administration. The amount of the stipend can’t depend on the success of a team or individual. The scheduling of contests. *a sportsmanship code governing behavior of booster club members and fans at contests. *taking. *Coaches and directors of UIL academics. Nonproﬁt or tax-exempt status may be obtained from the Internal Revenue Service. *Periodic ﬁnancial statements itemizing all receipts and expenditures should be made to the general club membership and kept on ﬁle at the school. directing or sponsoring UIL activities.president to oversee fall. *School administration should apprise booster clubs of all school activities. The penalty to a student-athlete is forfeiture of varsity 5. Coaches wish-lists should have received prior approval from school administration before submission to boosters. | ATHLETIC BOOSTERS | Club restrictions Booster clubs cannot give anything to students. *Booster groups or individuals may donate money or merchandise to the school with prior approval of the administration.9 | CLUB FINANCES | Fundraising | Spending | Stipends | Gifts to Coaches Money given to a school cannot be earmarked for any particular expense. etc. *Fund-raising activities should support the educational goals of the school and should not exploit students. should be aware of this rule. but cash or other valuable consideration must be given to the school to use at its discretion. 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.
Booster Clubs may raise money to provide an annual banquet for academic participants and coaches. A purely recreational trip to Six Flags 5. Actors may work summer stock and be paid. *Organize and chaperone trips and assist with expenses for travel to academic competitions or educational trips such as journalism conventions or speech tournaments. that is not given to all other students. snacks or snack foods during or after practices. Post-Season. Athletes are restricted by the Athletic Amateur Rule. plastic. you may also: *Purchase equipment for programs such as computers or software for yearbook or computer science. 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. So. wearable. 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. *Parties for athletes are governed by the following State Executive Committee interpretation of Section 441 of the UIL Constitution & Contest Rules. small ‘goodie bags’ that contain candy. must be returned after the season. If the school does not pay for meals. or where refreshments and/or meals are served. cookies or other items that have no intrinsic value and are not considered valuable consideration. Other. Athletes or athletic teams may be recognized at these functions. School athletic teams may be given preseason meals. UIL academic students are restricted by the Awards Rule. If approved by the school. plan or service related to a UIL contest.athletic eligibility in the sport for which the violation occurred for one calendar year from the date of the violation. Booster club funds may be used to provide food and refreshments for students on these trips. .10 Updated July 2010 Ofﬁcial Interpretation of the UIL Athletic Amateur Rule. 3. Yard signs made of commercial quality wood. include but are not limited to: 1. Pre-Season. *The school may provide meals for contests held away from the home school. 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. cookies or other items that have no intrinsic value and are not considered valuable consideration. Valuable consideration is deﬁned as tangible or intangible property or service including anything that is usable. Journalism participants may work for a newspaper and be paid. section 441 of the UIL Constitution and Contest Rules: (a) VALUABLE CONSIDERATION SCHOOL TEAMS AND ATHLETES MAY ACCEPT: 1. etc. if approved by the school. Local school districts superintendents have the discretion to allow student athletes to accept. Students should pay admission fees during school ﬁeld trips. if not purchased or made by the individual player’s parent. booster clubs should not give gifts or awards to students for their participation in UIL contests that count toward district. School booster clubs may raise money to purchase letter jackets. meals. 2. The school may also provide supplies for games and practices and transportation for school ﬁeld trips. from their fellow students. salable or consumable. Trinkets and food items cannot be attached. the individual parents need to purchase their own child’s food. other than food items. Students may win calculators and software for participating in invitational math contests. school athletic teams and athletes may be invited to and may attend functions where free admission is offered. 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. as a general practice. School athletic teams may be given postseason meals if approved by the school. Academics has no amateur rule. | ACADEMIC BOOSTERS | The rules for athletics are different than the rules for academics and music. *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. With prior administrative approval. 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. (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.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. Student athletes are prohibited from accepting valuable consideration for participation in school athletics . but may not accept anything. Parents may purchase jackets for their own children provided the school designates the student as being qualiﬁed to receive the jacket. region or state standing. 2.
T-shirts or other items for achievement in interscholastic competition would be subject to the UIL Awards Rule. What You Can Do: Parents *Remember: The classroom comes ﬁrst! *Help conduct fair and equitable competition: adhere to rules. speciﬁc educational components must be included such as performing for a music festival. *Be involved in areas in which your own child is not involved. *Some music booster clubs assist with expenses for travel to various music-related activities such as UIL contests and performances at away athletic events. Keep the superintendent informed of all activities. We wish we had more academic booster clubs. uphold the law and respect authority. Urge others to do the same. *Set standards by which you expect children to conduct themselves. Funds for such activities should be carefully monitored to ensure that they are expended for educational rather than recreational activities. lessons and summer music camps provided the selection of the recipients is not based on success in interscholastic competition. *Fund academic workshop scholarships provided selection of the recipients is not based solely on their success in interscholastic competition. | MUSIC BOOSTERS | In addition to the general procedures outlined.utexas. an adjudicated contest or a concert tour. such awards should be approved and administrated by the local school district in accordance with school district policies. *Delegate authority to the school. and live by those standards yourself. speech/debate. thus contributing to school unity and spirit. whether they cover UIL academic competition in general or speciﬁc programs such as theatre. *Work with your administration to determine what your club can provide. All students meeting the conditions for scholarship assistance should be notiﬁed and eligible for ﬁnancial assistance. the following guidelines apply to Music Booster Club activities. *Run tournaments. *Be mindful of the fact that there is no Music Amateur Rule. *Support other programs within your district. Don’t have unrealistic expectations. non-performing opportunities would also be appropriate if approved by the local school district. *Have a chain of command for communication with the administration.Over Texas would not meet the deﬁnition of an educational ﬁeld trip and could be considered a violation of the Awards Rule. *Attend the booster club meetings and/or know what the club is doing. Funds should be monitored to ensure that they are expended for camp or workshop purposes. *Remember that ofﬁcials are human.uil. journalism or math/ science. *Involve your staff with your booster club. *Show respect to the opponents of your children. Let the booster club know who your staff is and what duties they perform. *Invite administrators to all booster club meetings. raise money for scholarships and arrange for tutors and professional trainers to work with students. then support its decisions. *Help your children and their friends develop integrity through the intensity of competitive activity. *A recreational trip. Concert attendance.edu 5. *Understand that your advisory role to the boosters is without vote. A great need exists for parental involvement and support. *The awarding of patches. organize fund-raising efforts. Therefore. In order to protect all music students’ eligibility. *Make sure your local administration has a copy of all club publications. *Meet with parents regularly and make them aware of relevant rules. 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. *Allow your children to live their own lives. *Booster Clubs may also fund scholarships for private Updated July 2010 Work with the administration *Positive and direct communication can prevent most problems. *Clear all activities through your administration. Such ﬁnancial support violates no UIL rules provided that it is approved and coordinated by the local school district. visiting university/conservatory music facilities and other music related. However. would not meet the deﬁnition of an educational ﬁeld trip as provided in Section 480 of the UIL Constitution and Contest Rules. the Rose Bowl Parade or other similar ceremonial appearances also qualify. limitations established in athletics intended to ensure compliance with the Athletic Amateur Rule do not apply to music programs and related activities. recruit corporate donors. educational components need not be limited to performances. *Praise. www. *Many music groups schedule educational ﬁeld trips with the approval of the local school administration and under local school district policies. *Have an ofﬁcer meet with the school administration regularly. *Be aware of capabilities and limitations of young people. Students receiving the beneﬁts of a purely recreational trip would likely be in violation of the Awards Rule. *Make your request to the club beneﬁt as many students as possible. For such trips. Selection could be based on grade point average or the student’s selection of high school courses. on the other hand. Respect their decisions.11 . Marching performances such as the Macy’s Thanksgiving Day Parade. Don’t criticize.
.... Each Booster Club should strive to remain in good standing with all state agencies........14 5............... Qualifying for Exemption from Texas Sales and Use Tax.............................................................15 5................. each Booster Club is responsible for obtaining its own competent independent counsel on accounting and tax matters related to its specific circumstances.............. However... these steps are only general guidelines and do not ensure that a Booster Club will remain in compliance with all state tax regulations......................................................... Therefore.... This counsel may include a Certified Public Accountant (CPA) or an attorney.... information to Booster Clubs regarding state tax regulations... Steps have been documented to aid a Booster Club in abiding by the regulations................ including any District employee... the District........15 5..12 09/07/2010 .................................................................. not specific or all-inclusive.....13 5...... however........ The cost of these services would be the Booster Club's responsibility.........................14 5.............. This information is organized as follows: Page Obtaining a Texas Sales Tax Permit ......13 5.................State Regulatory Information This section has been prepared to provide general........................ 5............................................................... Reporting Requirements. Further Questions? . General State Regulatory Information Booster Club officers are solely responsible for ensuring that their Booster Club is in compliance with all state regulations................. Franchise Tax ........................ is not responsible for a Booster Club not being in good standing with all state agencies.. Therefore........ the District has provided the following information that includes detailed steps Booster Clubs should take to comply with state tax regulations...................... Change in Address .....
On this webpage. or person must apply for a Sales Tax Permit.us/taxinfo/exempt. you may also do an Exempt Organization Search to verify if your Booster Club is exempt. To determine if your Booster Club has a permit you may use the searchable Taxpayer Information Database at www. Booster Clubs may obtain a Texas Sales Tax Permit by submitting the completed applications to the Texas Comptroller’s Office. Note: Go to the Texas Comptroller of Public Accounts website at www. Booster Clubs should obtain a Texas Sales Tax Permit if you intend to sells goods or taxable services in Texas. This exemption process is separate and in addition to applying for federal tax-exemption from the IRS. The sales and use tax exemption allows approved organizations an exemption from sales tax when purchasing items to further the organization’s exempt purpose. Qualifying for Exemption from Texas Sales and Use Tax To apply for exemption based on the federal exempt status. See website at www. You must apply on-line for the Texas Sales Tax Permit. complete application AP-204. The Texas Sales Tax Permit Number has 11 digits and begins with a 1. a company. See Appendix for additional information from Texas Comptroller’s Office. A Texas Sales Tax Permit will be issued to the Booster Club along with a Sales Tax Permit Number. Booster Clubs cannot use the District's Sales Tax Permit Number.us/taxinfo/exempt. Therefore.tx.state.state. In addition. and sales of other items. The sale of goods does include fund-raisers.13 09/07/2010 . some Booster Clubs sell services that may be taxable.us. The permit numbers beginning with a "3" are assigned by the Comptroller’s Office.window.tx.tx.window. 2.window. 5.State Regulatory Information Obtaining a Texas Sales Tax Permit To sell any taxable items within the State of Texas. this exemption allows the approved Booster Club to make sales tax-exempt purchases of items intended for resale for a fund-raiser. such as candy sales. T-shirt sales. The permit numbers beginning with a "1" are based on an entity's EIN. organization. Those permit numbers beginning with a "2" are based on a person's social security number. or 3.state.
the Texas Comptroller’s Office will generally mail the required reporting form and information to organizations that have obtained a Sales Tax Permit. In addition. 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. Each "one-day" sale/auction may not exceed 24 consecutive hours. candles. tax-free” sales or auctions per calendar year. must collect sales tax for items sold that are taxable. are subject to sales tax when sold on days other than the two (2) “one-day. The vendor should remit the applicable sales tax to the Texas Comptroller’s Office. Remember: You must be granted the exemption first to be entitled to the two (2) “one-day. therefore. If you plan to hold a catalog fund-raiser. the frequency of reporting can also change.State Regulatory Information The Booster Clubs with the exemption are entitled to two (2) “one-day. cups. A fund-raiser qualifies for the “one-day. gift wrap is taxable. but cookie dough is exempt from sales tax by law. Sales of items such as T-shirts. tax-free” sale/auction days. 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. The frequency of filing the sales tax report is determined by the Texas Comptroller’s Office. etc. Since sales tax payments may vary from year to year. taxfree” sales or auctions per calendar year. Some Booster Clubs have reports due on a seasonal basis (semiannually). The amount of anticipated sales tax payments affects the frequency of reporting. Failure to do 5. Your booster club is considered an agent of the vendor and. tax must be collected for those items in the fund-raiser that are taxable. The Texas Comptroller’s Office will generally communicate changes in filing requirements to the Booster Clubs in writing. tax-free” sale/auction if all items are to be delivered on one day. or annually. This reporting frequency is no longer available for new Booster Clubs. tax-free” sales per calendar year. For instance. All catalog fund-raisers are considered taxable. quarterly.14 09/07/2010 .
Although a nonprofit corporation that is exempt from federal income tax under Internal Revenue Code 501(c)(3) is exempt from franchise tax. To avoid frequent mailing address changes. the exemption is not automatically granted. 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.state. For additional franchise tax information. immediately notify the Texas Comptroller’s Office.tx. Further Questions? Texas Comptroller’s Office Austin Office Exempt Organizations Department 1-800-252-5555 (toll-free) 1-800-531-5441 ext. 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. Failure to do so may result in important correspondence being lost.us. go to the Texas Comptroller’s Office website at www. In addition. the post office box address and keys can be given easily to the new officers at the beginning of each new year.window. Change in Address If the mailing address for the Booster Club changes. Booster Clubs must apply for exemption with the Texas Comptroller’s Office based on the federal exempt status.15 09/07/2010 . under Franchise Tax.State Regulatory Information so will cause the loss of corporate privileges as well as the forfeiture of charter by the Texas Secretary of State. 34142 5.
us www.state.state.window.State Regulatory Information Website addresses Texas Comptroller’s Office Sales Tax Information Exempt Organizations www.us/taxinfo/exempt www.window.16 09/07/2010 .window.tx.tx.us/taxinfo/exempt 5.tx.state.
.....19 5........ including the Internal Revenue Service (IRS)......21 5.. Advance Ruling Period (Temporary Tax-Exempt Status) ............ Applying for Public 501(c)(3) Tax-Exempt Status....23 5..........25 For more details... This counsel may include a Certified Public Accountant (CPA) or an attorney........ information to Booster Clubs regarding federal tax regulations............ Becoming a Public 501(c)(3) Tax-Exempt Organization............. the District has provided the following information that includes detailed steps Booster Clubs should take to comply with federal tax regulations..... Why Do I Want To Be a Public 501(c)(3)?............ General Federal Regulatory Information Booster Club officers are solely responsible for ensuring that their Booster Club is in compliance with all federal regulations..................... Why Do I Want To Be Tax-Exempt? ........... not specific or all-inclusive......23 5...... Filing Requirements for Tax-Exempt Organizations......Federal Regulatory Information This section has been prepared to provide general................................................... This information is organized as follows: Page Obtaining an Employer Identification Number ........................... 5...........20 5................. Therefore.. see Life Cycle of a Public Charity on the IRS website at www......................21 5......... Further Questions?..........................25 5...................................... Change in Address.. Therefore............................... The cost of these services would be the Booster Club's responsibility........................................... 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..........................irs... is not responsible for a Booster Club not being in good standing with all federal agencies.......................................... Each Booster Club should strive to remain in good standing with all federal agencies............. the District..........18 5........17 09/07/2010 ..........gov/charities... Steps have been documented to aid a Booster Club in abiding by the regulations.......... However............................ 5............................................. these steps are only general guidelines and do not ensure that a Booster Club will remain in compliance with all federal tax regulations.............. however......
Appling Online Once the application is completed. Applying by Mail Mail the completed Form SS-4 to: IRS Attn. Booster Clubs can not use the District's EIN.18 09/07/2010 . the mere fact that an entity is organized as a non-profit organization does not indicate that it is exempt from federal tax. Applying by Phone Call Business & Specialty Tax Line at (800) 829-4933. even if it will not have employees. EIN Operation Philadelphia. Booster Clubs may obtain an EIN by: 1. 5.Federal Regulatory Information Obtaining an Employer Identification Number Every organization must have an employer identification number. Likewise. A fax will be sent back with the EIN within four (4) business days. 3. 2. PA 19255 The processing timeframe for an EIN application received by mail is four weeks. IMPORTANT An organization is not automatically considered tax-exempt by acquiring an EIN. The employer identification number is a unique number that identifies the organization to the Internal Revenue Service. All organizations must first apply for an EIN to be recognized as a unique entity and then apply for tax-exempt status. Applying by Fax Fax the completed Form SS-4 application to (859) 669-5760. the information is validated during the online session. and an EIN is issued immediately. Note: No fee is required for obtaining an EIN. The EIN will be issued to the individual over the telephone. Since Booster Clubs are separate entities from the District. 4.
19 09/07/2010 . and 2. 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. Therefore. Why Do I Want To Be Tax-Exempt? The IRS Tax Code provides for special treatment of certain organizations identified as "tax-exempt. Since Booster Clubs usually assist student groups.Federal Regulatory Information After receiving your EIN. The criteria should be established in writing prior to a particular situation arising. 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. one student cannot receive a greater benefit than another unless the criteria for financial need discussed below is met. 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. If the criteria are met. Booster Clubs should not use an individual’s social security number to conduct the business of the organization. 5. 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. You may also want to have the Secretary keep a backup copy of these documents on a CD. "Individual accounts" are those accounts used by a Booster Club to credit an individual with revenues raised. Tax-exempt organizations cannot use individual accounts. individuals may not be able to afford to pay the amount owed to participate in a particular event. In addition. Contributions to certain tax-exempt organizations [501(c)(3)] are tax-deductible by the contributor. and the criteria should not change every year." Some benefits to becoming tax-exempt as a public 501(c)(3) organization include: 1. However. 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. the criteria should be used consistently for all people. the group or club could provide the necessary funds to allow the individual to participate. In some instances. Taxes are not paid to the IRS for revenues raised. Please note that individual accounts do not refer to bank accounts. you may use it to then open a bank account and obtain a State Sales Tax Permit.
and all donations. Furthermore. The members or students cannot be penalized in anyway for not participating in a fund-raiser. Of the 10 total members of the dance team. A Booster Club cannot require its members or the students in the related student group to participate in a fund-raiser. In addition. Why Do I Want To Be a Public 501(c)(3)? When applying for tax-exempt status with the IRS. subject to certain individual restrictions. each member's cost for attending the summer camp would be $180 ($200 cost . 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. Booster Clubs raise funds for a student group through the efforts of the Booster Club members. The Dance Team Booster Club decides to have a catalog fund-raiser to help defray some of the cost of the summer dance camp. are deductible on the contributor's tax return. (See the State Regulatory Information. Since revenues from the catalog sale were to be used to defray some of the dance camp expense.) 5. In addition.20 09/07/2010 . Normally.000 for its 10 members ($200 each). which is deposited into the Dance Team Booster Club's bank account. even though only 2 members participated. only 2 participate in the catalog sale that generates the $200. The catalog sale generates a total of $200 of revenue. the majority of its income is from the public. Booster Clubs should apply for the public 501(c)(3) tax-exemption. The following is an illustration of the above concepts: A dance team is attending a summer dance camp that costs $2.Federal Regulatory Information The purpose of a tax-exempt organization is to benefit an entity as a whole instead of benefiting individuals. This type of exemption means that the organization is tax-exempt. Therefore. Tax-exempt organizations cannot require that a certain amount be raised or sold per person. the individual benefits received by people would result in taxable income to them.$20 fund-raiser benefit). sometimes the students of the group being assisted participate in the fund-raising activities. however. 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. 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. Therefore. the tax-exempt Dance Team Booster Club must give all 10 dance team members an equal opportunity to benefit from the catalog sale. For example. Tax-exempt organizations cannot require a person to participate in fund-raising activities. 501(c)(3) organizations are eligible for state tax benefits.
Becoming a Public 501(c)(3) Tax-Exempt Organization Tax-exempt status is not automatic once an EIN has been issued. Complete IRS Package 1023 (Application for Recognition of Exemption) seeking tax-exempt status as a public 501(c)(3) organization. Complete IRS Form 8718 (User Fee for Tax-exempt Organization Determination Letter Request) and pay the required fee of $400 or $850. With a 501(c)(3) tax-exempt status. and a check for the filing fee to: Internal Revenue Service PO Box 192 Covington. an organization may be public or private. an organization is either a taxable organization or a tax-exempt organization. 3. all Booster Clubs must obtain tax-exempt status with the IRS as a public 501(c)(3) organization. Form 8718. A private 501(c)(3) organization has additional requirements and constraints that a public 501(c)(3) organization does not have. KY 41012 The filing fee is $400 if your annual gross receipts averaged no more than $10. 2. but do not allow for deductible donations under any circumstances. Applying for Public 501(c)(3) Tax-Exempt Status 1.Federal Regulatory Information The IRS has several other tax-exempt categories. The Booster Club officers should take the necessary steps to ensure they follow the regulations regarding that type of entity. organizations may not represent themselves as tax-exempt until they have obtained notification from the IRS stating they are a tax-exempt entity.000 during the last 4 years or if you are a new organization that does not anticipate annual gross receipts exceeding $10. organizations must apply for taxexempt status. According to Board Policy GE (Local). All other categories allow for tax-exemption.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.000 during your first 4 years. 5. however. According to the IRS. Furthermore. Therefore. all Booster Clubs should apply for tax-exempt status as a public 501(c)(3) organization. Mail Package 1023.
and Add expenses paid with money collected that was not deposited in the Booster Club’s bank account(s).000 during the last 4 years or if you are a new organization that anticipates annual gross receipts exceeding $10. Annual gross receipts: The total amount of revenue collected by an organization during its reporting year from any source. The IRS approval process for tax-exempt status usually takes several months. The date established will determine when the Booster Club has to file their informational return (Form 990) to the IRS.Federal Regulatory Information The filing fee is $850 if your annual gross receipts averaged more than $10. you may wish to align your year-end with the school’s year-end date of June 30. Changes are usually only allowed for extreme circumstances. Second. the IRS does not easily allow an organization to change it. trips). therefore. and any other amounts received. When completing the IRS Package 1023. the new officers would have time to prepare it after beginning the new school year. This way. the financial activity of the Club can relate easily to a given school year. When considering a fiscal year-end date. To determine annual gross receipts: Add all deposits made to the Booster Club’s bank account(s). but are not limited to. Third.. Add cash on hand that was not deposited by the end of its reporting year. the current officers can prepare the annual Financial Report and have it audited before the new school year begins.22 09/07/2010 . amounts collected for the payment of expenses (e. Sources may include. uniforms. Booster Clubs will establish their fiscal year-end (also known as the accounting period year-end or official year-end). fund-raising revenues.000 during your first 4 years.g. 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. Less transfers from one bank account to another. Once this date is established. 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). donations. membership fees. 5. the Club’s Form 990 would not be due to the IRS until November 15.
Return of Organization Exempt from Income Tax. the organization will receive a Determination Letter stating that the organization is considered to be tax-exempt as of a certain date. Advanced Ruling Period (Temporary Tax-Exempt Status) As of September 9. or 990. 2008. 990-EZ. and beginning with its sixth taxable year and all succeeding years. 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. 2008. 2008.. donations received are not deductible on the contributor’s tax return. Likewise. if your tax year ended on June 30. the organization will receive a Letter of Denial stating the organization is not considered tax-exempt. Furthermore. 2009. Therefore. if the Booster Club receives tax exemption under any other code [i. The return is due by the 15th day of the 5th month after the close of your tax year. For example. It must file returns annually. 501(c)(7)]. Examples of an Acknowledgment of Your Request and a Determination Letter have been included in the Appendix. All organizations that had an advanced ruling period that ended after June 9. Only then can the organization represent itself as a federally tax-exempt organization. If the IRS does not grant tax-exempt status.23 09/07/2010 . 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. 501(c)(4).Federal Regulatory Information Upon approval by the IRS of the tax-exempt status. each Booster Club must file an exempt organization information return Form 990-N. 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. Filing Requirements for Tax-Exempt Organizations Annually. would automatically be classified as a public charity for its first five years of existence regardless of the support actually received. the Form 990 is due November 15. 5.e. 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. 2009. it must meet the public support test as shown on Schedule A of Form 990.
000 at year-end. Gross receipts are $25.250. small tax-exempt organizations. For the fiscal year ends in 2011 and later: Booster Clubs must use Form 990-N. The e-Postcard is due every year by the 15th day of the 5th month after the close of your tax year. that previously were not required to file returns are now required to file an annual electronic notice Form 990-N (e-Postcard). Whether your Booster Club has filed for exemption status with the IRS.000 AND 2. file the appropriate 990 form as required by exempt organizations.000 or more 4.000 or more at year-end. Booster Clubs must use Form 990-EZ if: 1. Total assets are less than $1.000 or less. Gross receipts are $50. Total assets are less than $500. Booster Clubs must use Form 990 if: 1. The e-Postcard is required to be filed on-line.000 or more 2.Federal Regulatory Information According to the IRS.24 09/07/2010 . Booster Clubs must use Form 990-EZ if: 1. Gross receipts are $200. Total assets are $1.000 but less than $200.000 at year-end. 5.000 AND 2. Total assets are $500. Booster Clubs must use Form 990 if: 3. For the fiscal year ends in 2010: Booster Clubs must use Form 990-N.000 but less than $500. normally known as the e-Postcard if: 1. such as small Booster Clubs. You cannot file the e-Postcard until after your tax year ends. Gross receipts are more than $50. This new requirement began in 2008.250.000 or more at year-end. Gross receipts are more than $25. normally known as the e-Postcard if: 1. Gross receipts are $500.000 or less.
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.
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)
Additional information downloaded from the IRS’ website is included in the Appendix.
Included in this section: Taking Care of Business Overview Booster Club Information Sheet Financial Report Information & Formats Review Report Information & Formats
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.
School Name: 3. Employer Identification Number (EIN): 5. Date of Change: 7. State & Zip Code: 6. 6. Official Mailing Address: PO Box / Street Address: City. 1. Official Booster Club Name: 2.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.2 08/01/2008 . Sponsor’s Name: 4. 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.
3 08/01/2008 .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. 6. information on this page is public information and must be released to the public at such requests. 7. 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. 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.4 08/01/2008 .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. 6.
Since clubs may start their new year at various times. Name. of each year. The Treasurer of the Booster Club should prepare the Financial Report and should ensure that the Financial Report includes: Name of school. The Booster Club may want the time period used for reporting purposes to coincide with the election of new officers. 2010. If new officers normally come into office May 1. the time period used for reporting actual revenues and expenditures may vary from club to club. and the time period covered in the report. 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. This report would include the cash transactions. the time period for the Financial Report may be from May 1. name of Booster Club. Date the report was prepared. Type 1 report format is the simplest to prepare.This example is an accrual basis financial report that includes assets. Type 2 . the School Principal. of the following year. Foot all column totals of the Financial Report for accuracy. and the Director of General Administration by September 15. to April 30. and signature of person who prepared the report. or receipt of amounts in which income is not yet recognized. The following examples of Financial Reports are included in this handbook: Type 1 . Actual revenues and expenditures for the applicable school year. prepayments of expenses that have not yet been incurred. equity. if the 2009-10 report ended on June 30. of the following year. and expenses.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. the individual Booster Clubs should try to be consistent in the time period they use from year to year. income. title. Money received is usually shown as income and money paid is usually shown as an expense. then the 2010-11 report will begin as of July 1. The retained earnings amount should agree to the total equity amount from the prior year. 2010. liabilities. For example. 6. The Financial Report and Review Report are not audited by the District.5 09/07/2010 . however. but would also show amounts to be received or amounts to be paid in which money has not yet been exchanged. The beginning cash balance for the current year should agree to the ending cash balance from the prior year. The current year report should start at the point in time where the prior year report ended.This example is a cash basis financial report that includes the beginning and ending cash balances for the year.
75 $8. 2010 $5.111. 2009 through June 30.848.084.540.03 $1.29 $1.242.262.6 Title / Date 09/07/2010 .10 $ 650.00 $5.540.569. 2010 Beginning Cash Balance as of July 1.77 $2.00 $9.50 $2.320. 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 30.589.77 $ 236.00 $31.235.84 $2.625.875.25 $9.00 $9.46 $3.88 $4.502.Financial Report Information & Formats Type 1 Page 1 of 1 XYZ High School Spirit Booster Club CASH BASIS FINANCIAL REPORT From July 1.328.37 Cash Basis Financial Report prepared by: Printed Name / Signature 6.355.91 $8.00 $28.
524.7 09/07/2010 .00 $11.75 Balance Sheet and Income Statement prepared by: Printed Name / Signature Title / Date 6.025.025.12 $4.Financial Report Information & Formats Type 2 Page 1 of 2 XYZ High School Spirit Booster Club BALANCE SHEET As of June 30.458.00 $ 5.000.02 $2.154.15 $ 6.77 $3.024.135.00 $1.75 $ 500. 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 $1.00 $ 300.27 $11.112.000.25 $5.865.02 $3.
15 6.00 $ 38.8 09/07/2010 .68 $ 32.129.66 $2.18 $1. 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.Financial Report Information & Formats Type 2 Page 2 of 2 XYZ High School Spirit Booster Club INCOME STATEMENT For the Period of July 1.18 $2.752.13 $3.00 $2.56 $ 770.300.00 $ 770.372.388.865.03 $ 4.000. 2009 through June 30.00 $ 9.00 $14.500.00 $ 600.00 $ 328.237.
therefore. A CPA or other outside party may perform an external review at the Club’s expense. however. Although the examples included show space for four (4) members. Except for these minor exceptions. The organizational review committee.Review was performed with material exception(s) being noted. Sponsor’s spouse. The Sponsor. The Booster Club Review Report examples include: Option A . An internal Review Committee should use the examples of Review Reports included on the next few pages. They may be part of the Review Committee. The Review Report along with the Financial Report should be submitted to the Sponsor. the Club may have more or fewer committee members. or Officer’s spouse can not be the designated “non-officer” member of the Review Committee. Option C .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. Because of the material exception(s). The Financial Report was either corrected or exceptions did not have a material effect. 6. An internal review committee includes officers and club members. However. the Financial Report is not proper and correct. and the Director of General Administration by September 15 of each year. must prepare a written Review Report that communicates the results of the review to the organization. the committee should have at least one non-officer member review the information. Since they are reviewees. the Financial Report appears proper and correct. they can not also be the reviewers. Option B . if applicable] should not be on the Review Committee.Review was performed with no exceptions noted. due to material exception(s).Review was performed with immaterial exception(s) being noted. the Financial Report appears proper and correct. However.9 09/07/2010 . the School Principal. they would not be considered non-officers for the purpose of the review. However. the same information must be documented for each committee member (as opposed to the group as a whole). In some instances. whether internal or external. the committee may state that the status of the Financial Report could not be determined because of material exception(s). however. the committee may not be able to determine whether the Financial Report is proper and correct. they may meet with the committee or external reviewer to explain their records or answer questions. IMPORTANT The Treasurer(s) [and Assistant Treasurer(s). an external party should show the results of the review in their own report format with their signature and date included. regardless of the size of the committee. The review committee may be two types: internal or external. When this situation occurs.
Review the Treasurer's monthly reports and check them for accuracy. Review the reconciled bank statements and canceled checks to determine that: 1. Disbursements have been properly approved. Checks have been accounted for in the proper sequence (no missing checks). Have the Treasurer prepare the written report of revenues and expenditures (Financial Report) for your Booster Club. The report should include information for the twelve months after the ending date of the previous year’s Financial Report. In addition. a District employee can not be the Treasurer or an authorized signer on the Booster Club's bank account(s). Former officers should not remain on the account(s) as authorized signers. 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. (See Authorization for Signer on PTO & Booster Club Bank Accounts in the Appendix. Verify that receipts and disbursements were recorded to the correct account category. 4. or sponsoring UIL activities during a calendar year. directing. 2. athletics. then the beginning retained earnings should equal the prior year’s ending retained earnings balance plus/(minus) net income/(loss) for the current year.) Determine that the coaches and directors of UIL academics. Checks have been properly signed. Disbursements have been properly documented with an invoice or receipt. Checks have been deposited or cashed by the payee indicated and that no information on the face of the check has been altered. Foot all column totals of the Financial Report for accuracy. Determine that only applicable Booster Club officers are authorized signers on the bank account(s). Check addition and subtraction on cash receipts and deposits. or service(s) in recognition for coaching. 6.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. 3. and fine arts were not given more than $500 in money. Review the beginning and ending balances on reports to verify that correct ending balances were carried forward as beginning balances on subsequent reports. 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.10 09/07/2010 . Compare cash receipts and deposits to the bank statement. and 5. product(s). If the Club is using an accrual basis financial report.
Verify that 1099s were issued. Only Booster Clubs that have received an exemption from the Texas Comptroller’s Office are allowed two (2) “one-day. prizes & awards. The consultant is hired again in the Fall of 2010-11 for a $300 fee. 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. which credit funds raised to individual students or parents. The Booster Club should issue a 1099-MISC form to this person since the total paid within the 2010 calendar year is $600. Determine which two fund-raisers were chosen to be the “one-day.000 in gross revenues.000 in gross revenues. errors. attorney fees. After the review is complete. Determine that the Booster Club has not used individual accounts. 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. tax-free” sales/auctions per calendar year.11 09/07/2010 Option C Material Exceptions . In general. 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. you may have to issue a 1099-MISC (Miscellaneous Income) for each person to whom you have paid at least $600 in rents. Example: High-Kick Drill Team Booster Club hires a consultant during the Spring of the 2009-10 school year for a $300 fee. and other similar situations within a calendar year. tax-free” sales/auctions.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. irregularities) Immaterial Exceptions Option A Option B Financial Report appears proper and correct Financial Report appears proper and correct. if applicable. prepare the applicable Review Report (only one report type may be used per review: No Exceptions (i.e.. services. if applicable. 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.
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. and Financial Report. 6. Submit a copy of your Booster Club Financial Report along with the Review Report to the Sponsor. and the Director of General Administration. The Review Report includes reviewer’s name. The Treasurer is responsible for making any corrections to the records. prepare recommendations to prevent the future occurrence of these exceptions. checkbook. agrees with the period covered in the Financial Report.12 09/07/2010 . If material exceptions have been noted. Retain the original written Booster Club Financial Report and the original Booster Club Review Report on file with the Treasurer of the Booster Club.Review Report Information & Formats If exceptions are noted during the review. title. and signature and the period stated in the report. The organization's Treasurer and President are responsible for acting upon the recommendations made by the Booster Club Review Committee. consult with the organization's Treasurer and President (if necessary) to resolve the exception(s). the School Principal.
No exceptions were noted during the review. 2010. 2009 through June 30. 2010 The Review Committee members named below have reviewed the attached Financial Report and related financial activity for the time period of July 1. 6. 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.13 09/07/2010 .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. their title (second column) should be “Member”. These members agree that the Financial Report and the related financial activity are proper and correct to the best of their knowledge. 2009 through June 30. in detail.
6. The undocumented expenses totaled $42.20 instead of $2. 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. in detail.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. 2010 The Review Committee members named below have reviewed the attached Financial Report and the related financial activity for the time period of July 1.52.87. The check only contained 1 authorized signature. their title (second column) should be “Member”. 2009 through June 30.14 09/07/2010 . These members agree that the Financial Report and the related financial activity are proper and correct. The Program Ad Expense account contains three expenses that did not have the related invoices as documentation for the expense. except for the following exceptions: Check #12586 cleared the bank for $25. Check #12688 did not have 2 authorized signatures as required by the Booster Club bylaws. 2009 through June 30. 2010.
in detail. All checks issued should be signed by at least two authorized officers. 6. 2010 The Review Committee members named below have reviewed the attached Financial Report and related financial activity for the time period of July 1. should be received prior to payment of expense. These members agree that the Financial Report and the related financial activity are not proper and correct. To prevent the above exceptions from occurring in the future. such as an invoice.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 . Documentation should be kept with the other Booster Club records. 2009 through June 30. due to the following material exceptions: No documentation of cost existed for the 100 new uniforms purchased. 2010. a record should be kept of the sales and the money deposited. For all fund-raisers. All bank accounts should be reconciled on a monthly basis. 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. Checking and savings accounts were not reconciled during the year. the following steps should be taken: Documentation of all expenses. 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.
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.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.
Information Included in this section: Day-to-Day Responsibilities Overview Various Subject Areas concerning Day-to-Day Responsibilities 08/02/2008 .
Some of these responsibilities include: Setting up a bank account properly. Booster Club officers also have day-to-day responsibilities to the club. however. The Sponsor should not be considered an officer or member of the Booster Club. activity. The Booster Club works through the Sponsor to provide assistance for the planned activities of the student group.The Principal or Administrator is responsible for approving the activities of the student group and some activities of the related Booster Club. Principal or Administrator . this section is dedicated to the many day-to-day issues that face a Booster Club. tax-exemption. 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. however. we’ve covered various aspects of the major decisions that Booster Clubs have to make regarding incorporation. the students they support. The parents and the Booster Club may provide suggestions about particular activities. financial reporting. Accounting properly for fund-raiser income and expenses. Therefore. the Sponsor is responsible for the final decision with the Principal’s or Administrator’s approval. remember the responsibilities of the Booster Club and the pertinent District employees Booster Clubs support a particular student group or program through a Sponsor. 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. and Becoming knowledgeable of District policies concerning using District buildings and distributing flyers. Establishing and maintaining money handling procedures. Sponsor / Liaison . 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. However. In addition.1 09/07/2010 . 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. a Sponsor. and a Principal or Administrator are indicated below: Booster Club .Day-to-Day Responsibilities Overview So far. In addition.A designated Sponsor of a student group serves as the liaison between the Booster Club and the District. the Sponsor should work very closely with the Booster Club and provide guidance to the organization. or program. The main responsibilities of a Booster Club.A Booster Club is responsible for supporting a student group. In addressing day-to-day issues. the Sponsor shall approve all student / school-related activities of the Booster Club in accordance with Board Policy GE (Local). Analyzing the outcome of each fund-raiser to determine its financial success/failure. 7. as well as. under the supervision of the Principal or Administrator.
Accounting for a Fund-Raiser d. 10. Fund-Raising for Individuals or Families Insurance Mailing Address Members Membership Dues Money Handling Procedures a. Receiving Money b. 17. 4. Received b. Disbursing Money d. 2. 16.2 09/07/2010 . IRS Regulations c. 7. 8. Board Policy b. Recording and Depositing Money c. Safeguarding Money 15. Analysis of a Fund-Raiser e. Accounting Procedures Bank Accounts Carry-Over Balances Contributions / Donations a. Facilities Use Financial Aid Guidelines Flyers Fund-Raisers a.Day-to-Day Responsibilities These topics are covered alphabetically as follows: 1. 13. 18. 6. 12. 11. Use of Funds Raised 9. Quid Pro Quo Contributions Received c. 3. 14. Given 5. 19. Paying and Reporting of Workers (District Employees or Others) Project Prom Incentives Raffles Record Retention Sales Tax 7.
All accounting and safeguarding of the funds is the responsibility of the school. Booster Clubs may provide support to their student group in two manners: a) Booster Club members raise funds for a student group. In addition. In addition.3 09/07/2010 . The school deposits the funds into the student group’s activity fund. to be spent at their discretion (under the supervision of the Sponsor). A person’s social security number or the District’s EIN number cannot be used to set up a bank account. In addition. to support a student group. Using this method. 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. 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. Funds are deposited into the Club’s bank account. 22. b) Booster Club members raise funds for a student group.Day-to-Day Responsibilities 20. All accounting and safeguarding of the funds is the responsibility of the Booster Club. The Club writes checks to the individual vendors for the expenses related to the student group through their bank account. the Booster Club’s Financial Report would show a clear path of revenues generated and expended exclusively for its purpose. Funds are deposited into the Club’s bank account. The funds then belong to the members of the student group. 21. they collect amounts due from the students for each event/competition/trip in which the student group participates. number of authorized signers on the bank account(s) and number of authorized signatures required for each check. 7. According to Board Policy GE (Local). Bank Accounts Booster Clubs should set up a bank account with the Booster Club’s EIN number. The Club writes a check to the school where the student group is located. such as accounting method (cash vs. The Booster Club books and bank accounts should be reconciled monthly. All transactions should be recorded in the Booster Club’s financial records. 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. The IRS prefers that 501(c)(3) organizations use this method. accrual). once the school has received the funds. since it provides the “cleanest” procedure to track how the Booster Club spends its revenues.
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. To allow the individuals or businesses to deduct these contributions on their tax returns. 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. This approval must be requested and received each school year. Bank account(s) should be reconciled monthly. Carry-Over Balances No rule or regulation exists concerning the amount of funds that a booster club can have in their account. See Authorization for Signer on PTO & Booster Club Bank Accounts in the Appendix. 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. The Booster Club should spend the funds raised during the year on the students that participated in raising the funds. Be sure to inform the membership of why an excess in funds exist. 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.4 09/07/2010 . The written approval must be kept on file with the District’s internal auditor. 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. Explain how the funds will be used. In addition. Contributions / Donations a) Received Booster Clubs may receive monetary or non-monetary contributions from individuals or businesses. 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. 7. If a Booster Club requires two signatures for check disbursements.Day-to-Day Responsibilities A District employee can not be the Treasurer or an authorized signer on the Booster Club's bank account(s). The Booster Club may save the money raised over a couple years for a large item or trip.
you may indicate the dollar amount.Day-to-Day Responsibilities If your Booster Club is not a 501(c)(3) organization. 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. the disclosure statement must be furnished. 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. In this example. For contributions received. a charitable organization. and 7. Even though contributions or donations received will ultimately support the student group at a school. 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. If the gift is not monetary. In addition. The thank you note may indicate what was contributed or donated. b) Quid Pro Quo Contributions Received According to the IRS. REMEMBER 501(c)(3) is the only IRS tax-exempt category that allows contributions to be taxdeductible on the contributor’s tax return. the estimated value should not be included in the thank you note. 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. you must inform the individual or business that the contributions or donations are not tax-deductible. even though the deductible amount does not exceed $75. such as a Booster Club that is a 501(c)(3) organization. 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.5 09/07/2010 . the gift is still considered to be a gift to the Booster Club and not to the school or to the District. $60 would be deductible. Because the donor’s payment (quid pro quo contribution) exceeds $75. If the gift is monetary.” in excess of $75. described as a “quid pro quo contribution. must provide a written disclosure statement to donors who make a payment. contributions or donations are not tax-deductible. the Booster Club may want to send a thank you note along with a copy of the Determination Letter.
The schools are required to report contributions received at least at the end of each semester. The Contribution Form may reference this list. Example: Yippee Booster Club is funding a portion of a student group’s trip for a competition. your school may request the list of contributions from Booster Clubs twice a year. c) Given When the Booster Club contributes directly to the student group. and Records Manager to make arrangements to use the school facilities. thus. 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 disclosure statement is furnished in connection with a particular solicitation.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. Facilities Use According to Board Policy GKD (Local). The $35. Therefore. Booster Clubs should contact the Facilities Use. eliminating the need to have a form completed for each contribution. not to exceed $5. it is not necessary for the organization to provide another statement when the associated contribution is actually received. The trip costs $50. Public support of the District is very important in these areas. there is a penalty of $10 per contribution.000 per fund-raising event or mailing. therefore.000. Flyers. The District tracks contributions received from individuals and entities such as Booster Clubs. and the Booster Club has agreed to pay $35.000 that the Booster Club donated is considered a contribution to that particular District student group and should be documented on the Contribution Acknowledgment Form. A penalty is imposed on charitable organizations that do not meet the disclosure requirements. the students must pay the remaining $15. For failure to make the required disclosure in connection with a quid pro quo contribution of more than $75.6 09/07/2010 . This information may assist the District in receiving a more favorable bond rating and in receiving grants.000. the Club should receive a Contribution Acknowledgment Form from either the school or the District. Booster Clubs 7. A District employee should complete the form and give the original copy to the Booster Club for their records. The school may request that a Booster Club provide a list of contributions made to the student group or school. 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.000 of the expense. The Contribution Acknowledgment Form should be kept with the Booster Club’s financial records.
the Booster Club is responsible for all money 7. one student cannot receive a greater benefit than another unless the criteria for financial need discussed below is met. The Flyer Distribution Form can be found on the District website.cfisd. www.cfisd. Financial Aid Guidelines Tax-exempt organizations must benefit a group as a whole instead of benefiting individual members of a group. the group or club could provide the necessary funds to allow the individual to participate. under Campuses select Booster Club Guidelines. Therefore. and Records Manager for approval. If the activity is a Booster Club fund-raiser. individuals may not be able to afford to pay the amount owed to participate in a particular event. In some instances.cfisd.net under Departments select General Administration. Flyers. See Board Policy GKD (Local) and the Application for Building Use on the District website at www. Note: “501(c)(3) Number” is the same number as the Employer Identification Number (EIN). In addition. An example of Financial Aid Guidelines is included in the Appendix. 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. Since Booster Clubs usually assist student groups. The criteria should be established in writing prior to a particular situation arising. under Department select General Administration. Flyers District criteria states that 501(c) tax-exempt organizations may submit flyers to the Facilities Use. www. the criteria should be used consistently for all people. 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.net.7 09/07/2010 . Before any fund-raising activity occurs. 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).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.net. If the criteria are met. and the criteria should not change every year. Fund-Raisers See details below and refer to the High School Fund-Raiser Guidelines that are located on the district website.
Type of fund-raising activity (i. the school is responsible for all money collected and deposited from the fund-raiser. Booster Clubs should carefully consider limiting the number of major fund-raising activities involving students. Your Sponsor will then submit the Permission Request to the Principal (or designee) for approval. candy sale. Name of the sponsoring organization. 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. regardless if a person participates in a fund-raiser and regardless of the amount of revenue raised. Therefore. Furthermore. Name and phone number of the organization’s representative. If the type of fundraiser changes or if an additional fund-raiser is needed. 2. Likewise. that person cannot be denied the opportunity to receive an equal benefit. Booster Clubs may not require an amount be “donated” in lieu of participating in a fund-raiser. Name and phone number of the person(s) in charge of the fund-raiser. 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. 6. and 7. The Sponsor will submit the revised or new Permission Request to the Principal or designee for approval.e. 3.8 09/07/2010 . submit the Permission Request (first 2 pages) of the Fund-Raising Activity Report to your Sponsor by September 30. time(s) and place(s) of the activity. benefits given by a tax-exempt organization cannot be based on participation in a fund-raiser or based on revenues raised individually. Likewise. 7. if not already provided on the Permission Request: 1. submit a revised or new Permission Request to you Sponsor at least 30 days before the fund-raiser is to be held. 4.Day-to-Day Responsibilities collected and deposited from the fund-raiser. Furthermore. Date(s). carnival). if a person decides not to participate. 5. All such activities require both the approval of the Sponsor and School Principal.. For the fund-raisers planned for the current school year. b) IRS Regulations The IRS prohibits tax-exempt organizations from requiring people to participate in fund-raisers. a) Guidelines and Policies Board Policy GE (Local) discusses fund-raising regulations. Purpose of the fund-raiser. Name and phone number of the person(s) who will be handling the money for the fund-raiser. if the activity is a school fund-raiser.
The Treasurer should verify the information provided on the forms. even though only 10 people participated in the fund-raiser.$30). This type of analysis will help a Booster Club decide whether or not to repeat a particular fund-raiser. c) Accounting for a Fund-Raiser Within a week of the projected end date of the fund-raiser. 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 receives a benefit of $30 ($600 / 20). each person’s cost for the trip is $970 ($1. Therefore. only 10 people participate in the fundraiser and raise a total of $600. (See example above. Of the 20 people participating in the trip. The cost of the trip is $20. review your application for recognition of exemption (Form 1023) to determine how funds raised or contributions received by a booster club may be used. The $600 must be split equally among the 20 people going on the trip. Now. 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.) e) Use of Funds Raised According to the Internal Review Service (IRS).000 . Submit the Operating Report and applicable attachment to the Treasurer.000 for 20 people.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.000. (See the Appendix.) "Individual accounts" are those accounts used by a Booster Club to credit an individual with revenues raised. The IRS prohibits the use of individual accounts by Booster Clubs.9 09/07/2010 . 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. Therefore. Booster Clubs must benefit the group as a whole. not its individual members. complete the Operating Report of the Fund-Raising Activity Report and the applicable attachment. each person’s cost for the trip before the fund-raiser is $1.
to major illnesses or fires. Proof of a general liability policy is required when District facilities are booked through the Facilities Use Department. These contributions are not tax deductible for income tax purposes. End of Year Gifts to Executive Board 4.) This insurance policy would not protect the Booster Club from robbery or outside theft.Day-to-Day Responsibilities status based on this information. These events may range from death or injuries in tragic accidents. Gifts to Principals 2. Even though we want to assist individuals and families in times of need. the IRS may question whether the organization should continue as a public 501(c)(3) organization. In addition. schools and the District cannot hold fund-raisers for these individuals and families. another booster club may not be able to expend funds for the same items. one booster club may expend funds for certain items. Because the application for recognition of exemption may be written differently from one booster club to another. If general liability insurance is not purchased. District staff. If funds are used for purposes not indicated in the Form 1023 document. Funds may be used for those purposes indicated in the Form 1023 document.10 09/07/2010 . The funds raised or donations received by the Booster Club may not be used for the following purposes: 1. the Booster Club should consider purchasing event insurance when holding a carnival or other similar event. Most of us want to help these individuals or families. Raising funds for these situations must be done by the family setting up a special account at a bank or credit union. Gifts to Teachers / Sponsors 3. Insurance The Booster Club should consider purchasing general liability insurance to protect the Booster Club in case of accidents or injuries. whereas. Donations can be made by individuals or businesses by sending checks to the bank or credit union for the particular individual or family. Fund-Raisers for Individuals or Families Many heartbreaking events happen in the lives of our students. 7. and their families. a fidelity (bond) coverage policy should be considered to protect its funds from embezzlement (internal theft. Alcoholic Drinks Please note that amounts expended for Booster Club Officers are under stricter guidelines than other members of the Booster Club. 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.
however. The IRS mails forms and other correspondence to Booster Clubs periodically.. The District does not recommend using a home address since officers change frequently. Second.irs. the Texas Comptroller’s Office. Other individuals may volunteer for the Booster Club. summer vacation and some holidays). the Texas Secretary of State. First. and the IRS. “Members” should be defined in the Booster Club’s bylaws. a Booster Club could lose their tax-exempt status. 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. trip expense. and your bank as you would if you used someone’s home address.. thereby also losing their tax-exemption with the State of Texas and possibly face fines and penalties. If the related school’s address is used as the Booster Club’s official address. 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. Booster Clubs receive several important documents from these agencies throughout the year. IRS Form 8822 for reporting change of address is available on the IRS website. To avoid frequent mailing address changes. and if the address changes frequently. the IRS.11 09/07/2010 . immediately notify the District. Please understand the importance of maintaining a consistent mailing address for the Booster Club. If these forms are not completed and returned to the IRS within a specific time period.gov under Forms and Publications. the Texas Secretary of State. you will save time since you will not have to update your address each year to the District. www. the Booster Club should be aware that it may not receive mail in a timely manner when the school is closed (i. but can not vote or hold an office.e.e.Day-to-Day Responsibilities Mailing Address If the mailing address for the Booster Club changes. 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. Membership dues are separate from the expenses incurred by sponsoring a student group (i. the Texas Comptroller’s Office. Only active members should have the ability to vote or hold an office. costume expense). 7. 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. This address and box keys can be given easily to the new officers at the beginning of the year. some of these documents could be lost or misplaced. Membership Dues Booster Clubs may charge dues to their members (the parents).
and cashier's checks received should be made to assist in recovery of money if these items are lost. IMPORTANT If a money order or cashier's check is received. Receipts should indicate whether cash. Copies or a list of checks. b) Recording and Depositing Money Prior to depositing money. Money received should only be deposited in the Booster Club’s account(s). at least two people should count the money. c) Disbursing Money Require two signatures on each check. or cashier's check was received. brand name of the money order or the issuing bank's name of the cashier's check. a) Receiving Money The person receiving the money while in the presence of the person turning in the money should count all money received. If a copy of the money order or cashier's check is made. the receipt should indicate the total check amount. 7. check. and the complete check or money order number. the inclusion of this additional information on the receipt is not necessary. or cashier’s checks. and signature of person receiving the money. money order. date of the receipt.Day-to-Day Responsibilities Money-Handling Procedures Money refers to cash.12 09/07/2010 . Deposit slips should be retained and reconciled monthly to the account. or returned due to insufficient funds. Post-dated checks should not be accepted from any source. The person receiving the money should give a receipt to the person delivering the money (both parties should retain their copy of the receipt). Do NOT sign blank checks. money orders. checks. stolen. money orders. The following are suggestions related to handling money to assist in ensuring proper accountability. All money should be delivered to the Booster Club Treasurer to deposit funds daily. Any checks received should be restrictively endorsed immediately. Receipts should be reconciled with all money turned in and deposited.
Do not keep any money in an unlocked drawer. including injury or theft. All unused checks should be kept safe and secure at all times. but not theft. use of weighted average hourly rates. or for any other purpose. unlocked filing cabinet.13 09/07/2010 .. In some situations. the record of the money may be taken along with the money. This includes an individual who is paid $600 or more for “cultural arts events. Money received and not yet deposited should not be used for purchases.” The Booster Club will need to get social security numbers from all workers. Issuing checks payable to "Cash" or to the "Sponsor" should be avoided. Subsequently. It is best to have the W-9 completed before paying the worker. "Blank" checks should never be issued and checks should never be presigned. reimbursements. These issues include overtime pay. This can be done by having them complete a W-9 form. There are many technical and legal issues that arise if they are paid by the District. Also remember that the Booster Club is responsible for its volunteers and employees during Booster Club events or activities. taxes. If a check must be payable to "Cash" or to the "Sponsor. The IRS may examine these transactions in more detail than other transactions. 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. advances. and other benefits. and the advancing of district funds that is prohibited by law. determination and recovery of losses would be more difficult. Do not store the records of the money received (i. The sequence of check numbers should be accounted for when reconciling the bank statement to the Booster Club's books. The pay appropriately is done through the District through the facilities use charges. receipts. 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. If records and money are stored together and a theft occurs. copies of checks) in the same place as the money. 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. These employees are doing work for the District and not the Booster Club.e. payment of TRS." keep detailed documentation of the expense or use of the funds. 7. check cashing. or other unsecured place. vehicle. This protects against embezzlement. loans.Day-to-Day Responsibilities d) Safeguarding Money Have people that handle money bonded.
with certain specified restrictions. schools and the District are not allowed to hold raffles. permits "qualified organizations" to hold up to two raffles per calendar year. and Booster Club Sponsors. The incentives are very similar to individual accounts that are not allowed.oag. Raffles By State law. Booster Clubs may hold raffles if the requirements from the Texas Attorney General’s office are followed. However. Principal Secretaries. 2.tx. Incentives are used to only have chances to win prizes. The incentives can be earned for volunteering for various project prom activities including fund-raisers. These positions include Principals. The incentives can not be used towards the purchase of a prom ticket. Financial Secretaries. Project Prom Incentives The Project Prom Booster Clubs may give “bonus bucks. What does the law permit? The Charitable Raffle Enabling Act. According to the District’s Fund-Raiser Guidelines.14 09/07/2010 . Everything at the after prom event is free.Day-to-Day Responsibilities Certain district employees cannot be hired by a Booster Club to perform work that includes the handling of money.us/consumer/raffle. 7. 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. individual accounts are used normally to offset personal costs for a student for an event or trip. then these incentives may be used: 1. If the following three (criteria) are met. effective January 1. Every student attending the after prom event receives some incentives for just attending the event. Raffle tickets may be sold at the Berry Center or the Exhibit Center. The use of incentives is only approved for project prom.state. The following information was downloaded from the Texas Attorney General’s website at www. 1990. 3.” “coupons.shtml.
15 09/07/2010 . even though the tickets' payoff may exceed $50. b) A nonprofit volunteer emergency medical service that does not pay its members other than nominal compensation. and the date the raffle prizes will be awarded. does not devote a substantial part of its activities to attempting to influence legislation. Texas lottery tickets may be purchased and offered as prizes.000. 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. the price of the ticket. The language of the law is very technical. Raffle tickets may not be advertised state wide or through paid advertisements. Each raffle ticket must state the name of the organization holding the raffle. does not distribute any of its income to its members. or d) A nonprofit organization that has existed for at least three preceding years. There is no value limit on prizes donated to the organization. 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. What prizes may be offered? An organization may offer any prize except money. 7. you should check the statute to be sure you qualify. during which it has had a governing body duly elected by its members and is exempt from federal income tax under Section 501(c). address of the organization or of a named officer of the organization. A prize may not be money. 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.000. and does not pay its members other than nominal compensation. a general description of each prize to be awarded that has a value of over $10. and does not participate in any political campaign. the value of the prize may not exceed $50. Is an organization required to register with the State before conducting a raffle? No. provides firefighting services. officers or governing body. Internal Revenue Code. 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. c) A nonprofit volunteer fire department that operates fire fighting equipment. If you are considering holding a raffle to benefit an organization.
Are there any penalties for conducting or participating in an unauthorized raffle? Yes. Consumer Information For more information. The organization may not permit a non-member or other unauthorized person to sell or offer to sell raffle tickets. or student organizations recognized by institutions of higher education selling on behalf of the institution. An unauthorized raffle is considered gambling under the Texas Penal Code. What law enforcement authorities may stop an unauthorized raffle? A county attorney. or for selling raffle tickets.16 09/07/2010 . may sell tickets. How may the proceeds from ticket sales be used? Proceeds from ticket sales must be used only for the charitable purposes of the organization. No one may be compensated directly or indirectly for organizing or conducting a raffle. Charitable Raffles. Participating in an unauthorized raffle is a Class C misdemeanor. 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.Day-to-Day Responsibilities Only members of the organization. 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. Where can I get more information on the requirements for holding a raffle? The law is Chapter 2002. call the Attorney General's Consumer Protection Hotline at 1-800-621-0508. Texas Codes Annotated. Occupations Code. Conducting such a raffle is a Class A misdemeanor. If you have specific questions about the law. Only raffles held according to the terms of the Raffle Enabling Act are authorized raffles. or contact your nearest Attorney General regional office.
Write to: Office of the Attorney General P. Texas 78711–2548 Complaint forms and additional information can also be found in the Consumer Protection section of our website. Application for Recognition of Exemption. Some items need to be kept indefinitely while other items only need to be kept for a certain length of time.us.O.tx. Box 12548 Austin. with all attachments Copy of IRS Form 8718. at www.state.oag.Day-to-Day Responsibilities All consumer complaints must be made in writing. 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. User Fee for Exempt Organization Determination Letter Request.17 09/07/2010 . and copy of check sent to IRS with this form Acknowledgement of Your Request 7. Record Retention Booster Clubs should establish a record file that is passed to the new officers each year. Application for Employer Identification Number Copy of IRS Form 1023. Please call or write for a complaint form.
e. or if the sales tax returns have not been filed. According to the IRS. This statute of limitations may be extended beyond the four (4) years. the Texas Comptroller’s Office and the IRS have different retention periods as discussed below. In addition. certain circumstances. 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. penalties. In cases of fraud. Support Schedule for Advance Ruling Period IRS’s notice granting a permanent exempt status to the organization. the statute of limitations does not apply and the Texas Comptroller’s office may assess and collect taxes. In considering the requirements of the Texas State Comptroller’s Office and the IRS. In addition. However. Form 990-EZ. other exceptions to the statute of limitations may apply. if applicable For non-permanent records. According to the Texas Comptroller’s Office. 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.Day-to-Day Responsibilities Determination Letter Copy of IRS Form 8734. and interest at anytime. such as fraud. if fraud is suspected or if returns have not been filed as applicable. if an agreement is made in writing between the Texas Comptroller’s Office and the Booster Club. Form 990.. this office has four (4) years from the date the tax becomes due and payable in which to assess the liability. would allow the retention period to be extended beyond the normal requirement. the IRS could request information prior to the 3-year period discussed above.18 09/07/2010 . whichever is later. Booster Clubs must keep each annual information return (i. 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.
If your sales price included sales tax. forms filed.Day-to-Day Responsibilities Federal Records Copy of IRS Forms 990.40 x .60 = $1. 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. Sales Tax For fund-raisers in which sales tax must be collected. You may charge a nominal fee for copying.40 + $67.0725 = $67. Including sales tax in the price and having the price an even amount such as $10.40 Taxable Sales $932. if someone requests to view any of your tax applications.0725. $1.60 Sales Tax $932.000. or 990-N filed Copy of correspondence with the IRS Before discarding any records.0 + TAX RATE) = SALES AMOUNT EXCLUDING TAX EXAMPLE: Total sales are $1.50 is an easy method to use. IMPORTANT According to IRS disclosure requirements.00 Gross Amount Collected 7. not to exceed the current governmental rate of $.000 : 1. or tax returns. you must provide complete copies of the material. you need to be careful to avoid paying sales tax on sales tax. the Booster Club can sell items at a certain price plus sales tax or sales tax may be included in the price. you need to do the following calculation to determine your correct amount of sales and sales tax: TOTAL SALES AMOUNT DIVIDED BY (1. Tax rate is 7 ¼ % or .000 including tax.20 per page plus postage.0725 = $932.19 09/07/2010 . 990-EZ.00 or $10. however.
go to the District’s website at www. program continuation. However. Trusty received the merchandise. in the community. they must do so independently from the District and school.cfisd. resulting in amounts owed to the Booster Club. Volunteer hours can be reported on-line. the father of Jane Smith. and the State of Texas requires public school districts to facilitate parental involvement in their children’s education. under Departments.20 09/07/2010 . 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. Volunteer Hours The District values the diversity of volunteer activity in the community. The Booster Club may pursue trying to recover the money or merchandise from Trusty.Day-to-Day Responsibilities Your customer must be informed that you are charging sales tax. If a Booster Club wishes to pursue recovery of these amounts. 7. For example. Accounting for such volunteer hours is essential since it impacts issues such as funding. and communication. whether it is at home. the Treasurer must present a written Treasurer’s report of the money received and expended since the last report. select Partners in Education. one of students in the group they support. Since these amounts relate to Booster Club activities. To report Volunteer hours. please take a few moments to report the many hours your Booster Club has dedicated to our students.net. Example: High Spirit Booster Club held a catalog fund-raiser and $400 is still owed to the Booster Club by Trusty Smith. Treasurer’s Report At each Booster Club meeting that includes its general membership. Therefore. they cannot be placed on the school’s Student Fines and Fees List. A posted sign or a statement on a receipt indicating that tax is included may be used. Student Fines and Fees List Booster Clubs may have students or parents who do not submit money for fund-raisers or expenses. many grants and federally funded programs require an accurate reflection of volunteer hours. or in the classroom. but never paid for it.
2 Page 1 of 2 11/02/2009 .3 Forms Texas Sales and Use Tax Exemption Certification Texas Sales and Use Tax Resale Certificate C3.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 A1.20 A1.1 C3.19 A1.7 A1.12 A1.1 C2.1 Forms Authorization for Signer on PTO & Booster Club Bank Accounts Fund-Raising Activity Report B2.2 C2.1 A1.2 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 C1.21 District Examples Contribution Acknowledgment Form B1.1 B2.16 A1.1 C1.6 C1.8 Examples Approval of Articles of Incorporation Certificate of Incorporation Texas Sales and Use Tax Permit C2.3 A1.
1 D2.30 Page 2 of 2 11/02/2009 .3 D2.2 D1.4 Examples Employer Identification Number (EIN) Assignment Notice Acknowledgement of Your Application Form 1023 – Application for Recognition of Exemption Determination Letter D2.2 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 D1.1 D1.3 D1.
to engage in any and all lawful activities incidental thereto as restricted herein. TX 00025-1225 ARTICLE III The period of its duration is perpetual. TX 77359 8857 Freezing Blvd. 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. Jingle Bells.ARTICLES OF ASSOCIATION Silent Night Choir Booster Club Articles of Association of the undersigned. TX 77359 5589 Reindeer Run. 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. 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. Jingle Bells. TX Street address: Silent Night Choir Booster Club PO Box 1225 Jingle Bells. Jingle Bells. TX 77358 3978 Manger Way. In furtherance of these purposes. TX 77358 A1. 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. 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.1 09/07/2010 .. 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. the Association is authorized to receive property by gift or bequest and to invest and reinvest the same. and to apply the income and principle thereof as determined by the Board of Directors and Choir Director exclusively for charitable and educational purposes. ARTICLE IV The purpose of this Association is to assist the directors of the Silent Night Choir in reaching the choir program goals. a majority of whom are citizens of the United States.
or otherwise attempting to influence legislation. as amended from time to time. however. or member. Joe Soeuff Fred Frosty Sann Tababe Ruddy Rednose 2007-08 President 2007-08 Vice President 2007-08 Treasurer 2007-08 Secretary A1. the assets.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. contributions to which are deductible under section 170(c)(2) of the Internal Revenue Code. trustees. or pursuant to court order. we. The distribution shall be made by the Board of Directors. shall such distribution inure to any person who has a personal and private interest in the activities of the association. In no event. No substantial part of the activities of the association shall be the carrying on of propaganda.2 09/07/2010 . and the association shall not participate in. or the corresponding section of any future federal tax code. ARTICLE VIII In the event of voluntary or involuntary dissolution of this association. or would cause any benefit to inure to any officer. that no amendment shall be made which would alter the purposes for which the association is organized as set forth in Article IV. 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. director. or the corresponding provisions of any subsequent revenue law or laws. however. for the purpose of forming this association under the laws of the State of Texas. or the corresponding section of any future federal tax code. or (b) by an association. after payment of just debts. IN WITNESS WHEREOF. provided. officers or other private persons. 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. Notwithstanding any other provision of these articles. 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. the undersigned constituting the Executive Board of the Association. 2007. have executed these Articles of Association on the 26th day of August. incorporator. ARTICLE VII These Articles of Association may be amended from time to time as provided by the statute of the bylaws of the association.
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.
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.
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.
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
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
COUNTY OF HARRIS I. who being by me first duly sworn.6 09/07/2010 . 2008. declared that he is the person who signed the foregoing document as incorporator. do hereby certify that on May 31. personally appeared before me. and that the statements contained therein are true. TU EXPENSIVE . Notary Public in and for the State of Texas A1. a Notary Public for the state of Texas.
Notwithstanding any other provision of these bylaws. ARTICLE II . as said Court shall determine. or otherwise attempting to influence legislation. officers. as the Executive Committee shall determine. or other private persons. which are organized and operated exclusively for such purposes. This organization is organized to support the activities of the drill team members. or intervene in (including the publishing or distribution of statements) any political campaign on behalf of any candidate for public office. to have voting rights in the organization. However. including. after paying or making provision for the payment of all of the liabilities of the organization.OBJECTIVES Sec. educational. or be distributable to. Upon the dissolution of the organization. its members.YEE-HAW BOOSTER CLUB ASSOCIATION BYLAWS AMENDED: November 28. 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).7 08/01/2008 . but only as a volunteer without voting rights. 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. dispose of all of the assets of the organization exclusively for the purposes of the organization in such manner. the parent must have a student that is currently active in the program. Anyone else may be a member. This organization is organized exclusively for charitable. 2007 ARTICLE I . A1. educational. Sec. exclusively for such purposes or to such organization or organizations. 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. 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. the Executive Committee shall. 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). and the organization shall not participate in. No part of the net earnings of the corporation shall inure to the benefit of. 1. ARTICLE III . trustees. or to such organization or organizations organized and operated exclusively for charitable. religious.MEMBERSHIP DUES Membership becomes automatic upon payment of dues. No substantial part of the activities of the organization shall be the carrying on of propaganda. for such purposes. 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 scientific purposes. 2.NAME The name of this organization shall be the YEE-HAW BOOSTER CLUB.. religious.
no officer shall incur any personal liability as a result of serving on this board. the Yee-Haw Director. contest trips. 3rd Vice-President. Treasurer(s) and Parliamentarian. Sec. 1. 3. 4. Sec. 7. The 3rd Vice-President shall be responsible for organizing all fund raising projects. These officers shall be elected annually in April and assume duty at the installation of officers at the May Booster Club meeting. the Principal. Secretary. 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. Sec. 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. 6. 6. Sec. The Treasurer(s) shall be custodian of all Booster Club funds and all disbursements of Sec. 4. The Executive Board of this club shall consist of the following officers: President. A1. 1st Vice-President. these funds under guidelines listed below.8 08/01/2008 . and none are paid any compensation for services performed. Sec. and five other members appointed by the President. Two of the appointed members shall be from the Executive Committee and three from the membership at large. 2. 2nd Vice-President. 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. and the Executive Committee and shall be a member ex-officio of all committees and shall perform other duties usually pertaining to the office.OFFICERS AND THEIR ELECTION Sec. or other events which take place. Sec. one junior class representative. Sec. 5. As such. at his or her discretion. Executive Board. The nomination committee shall consist of the club President as chairperson. Sec. All officers are volunteers. including one sophomore class representative.ARTICLE IV . Sec. A vacancy occurring in an office shall be filled by a vote of the executive board. Nominations of officers shall be presented to the membership by a nomination committee at least one month prior to the election of the officers. The President shall preside at all meetings of the club. unless there are nominations from the floor in which case the vote shall be by ballot. 1. Sec. 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. ARTICLE V . and one senior class representative. 5. 3. 2. The 2nd Vice-President shall be responsible for procuring chaperones for all football games. 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 shall be elected by voice.DUTIES OF OFFICERS Sec.
Duplicate receipts will be issued by the Treasurer with the Treasurer retaining the original and a copy given to the 3rd Vice-President. b. The Parliamentarian will insure that all meetings are conducted according to Robert's Rules of Order. 2. the project chairperson. 3. 2. to approve the plans of work of the standing committee chairpersons. Expenditures in excess of budgeted amounts will not be expended without board approval.MEETINGS Sec. ARTICLE VI . All checks are to have these two (2) signatures.9 08/01/2008 . Sec. At the end of his/her term. 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. President of the Booster Club. The 3rd Vice-President (fund raising chairperson).EXECUTIVE COMMITTEE The Executive Committee shall consist of the officers of the club and the Yee-Haw Director. and to present reports at the regular meetings. 6. the Booster Club shall have an organizational committee conduct an annual review of the organization's revenues/expenditures for the prior year. ARTICLE VII . Sec. Receipts and "Request for Funds" forms must be presented to the Treasurer for reimbursement. shall constitute a quorum. The following signatures are to be maintained on the file at the financial institution in which the checking account is located: a. and Treasurer(s) of the Booster Club. 1. Its duties shall be to transact necessary business between club meetings and such other business as may be referred to it by the club. The Treasurer will be required to keep current and accurate ledgers indicating all accounts payable. Fifty percent (50%) of the voting membership of the Booster Club. 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. with a financial statement given at the May meeting. one of whom shall be authorized to open and preside over the meeting. A financial disposition of Booster Club funds shall be presented monthly.1. 5. No cash advances are allowed unless the item has already been budgeted for and funds are available. 7. Special meetings of the Executive Committee may be called by the President or by a majority of the committee's members. A1. 4. and the Treasurer shall be in charge of tabulating money at the end of each fundraiser.
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.AMENDMENTS These bylaws may be amended at any regular meeting of the organization by two-thirds vote of the designated quorum. Christmas Wrap. Cards are to be sent in all other instances. Banquet Mother/Daughter Luncheon Parent Socials Sunshine (Thank Yous) Costumes/ Sewing Telephone ARTICLE IX . The Booster Club has no authority to direct the Director. method of earning letters. Their term of office shall be for one year. an employee of Totally Country High School.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. provided notice of proposed amendment shall be given at the previous regular meeting. brother). Jazz Camp. in any of her duties.10 08/01/2008 .e.STANDING RULES Flowers or memorials shall be sent in case of death of a Yee-Haw member or immediate family member (mother.E. etc.A. rules of participation.ARTICLE VIII .: Car Wash. ARTICLE X . awards offices and all other criteria dealing with interschool programs are under the jurisdiction of the Director and the school administration. The chairpersons of the standing committees shall be appointed or selected by the newly elected Executive Board.C. The schedule of contest. Candy Sales. sister. Standing Committees Scholarship Father/Daughter Social Photo Historian Props Publicity Standing Committees (continued) Formal Spring Show Fundraising (i.) P. All Booster Club projects must support the philosophy of the school administration. A1. father. ARTICLE XI .
and drill team director shall decide on the amount due from drill team members in connection with a social event. props. Committee chairpersons. All funds raised shall be for the purpose of supporting drill team activities by providing funds to cover costumes. 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. A1. 1. uniforms.RETURN CHECK POLICY Sec. contest travel expenses. 1. ARTICLE XIV . ARTICLE XIII . scholarships. and drill team members are required to pay for participation in connection with same. only cashier's check or money order. no further checks will be accepted. 2.FUNDRAISING Sec. The scholarship recipient(s) will be decided by the Totally Country Scholarship Committee. contest fees. ARTICLE XV . board members. leotards. Social events will be incidental to the purpose of fund raising activities. The amount to be awarded shall be determined by the Executive Board when creating the annual budget.AWARDS Attendance awards shall be given only to the daughters of members who have missed no more than one (1) meeting during the year. ARTICLE XVI .VOTING Membership in the Yee-Haw Booster Club is by family with one vote per family. refreshments.11 08/01/2008 . All sales campaigns must be cleared through the Yee-Haw Director and the Totally Country Principal. Sec.ARTICLE XII . 2.ACADEMIC An academic scholarship will be given to needy or deserving Yee-Haws as the funds are available. shoes. If more than one insufficient funds check is presented to the Booster Club by the same party. Sec. 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.
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.
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.
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.
8.2 Checks and Drafts.000 for use for the succeeding Project Prom.2 Fiscal Year. ARTICLE XI RULES OF ORDER 11. In all succeeding years. 9.1 Rules of Order. following notices of the proposed amendment at a previous regular or special meeting of the Board of Directors. or other depositories as the Board of Directors may select. the Corporation shall remit $ 1. the Corporation shall remit $500 to next year's Project Prom. or orders for the payment of money. drafts. trust companies. ARTICLE IX MISCELLANEOUS 9. and committees having any of the authority of the Board of Directors. notes.4 Gifts.or other evidences of indebtedness issued in the name of the Corporation shall be signed by such officer or officers. 8. gift.3 Deposits: All funds of the Corporation shall be deposited from time to tome to the credit of the Corporation in such banks. 8.15 08/01/2008 . 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. Except as provided in these Bylaws. and shall keep at the registered or principal office a record giving the names and addresses of the members entitled to vote. At the close of the fiscal year in 1999. The Board of Directors may accept on behalf of the Corporation any contribution. The Corporation shall keep correct and complete books and records of account and shall also keep minutes of the proceedings of its members. we have hereunto set our hands this day and year shown below. the rules contained in Roberts Rules of Order Newly Revised shall govern the Corporation operation. 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. ARTICLE X AMENDMENTS 10. The fiscal year of the Corporation shall begin on the first day of August and end on the last day in July. All Checks. at the close of the fiscal year.1 Books and Records. Dated: / / Joe Smith Dated: _____/_____/_____ Jane Doe Dated: _____/_____/_____ Mary Smithe A1. 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. ADOPTED IN WITNESS WHEREOF.8. bequest or devise for the general purposes or for any special purpose of the Corporation. Board of Directors.5 Special Provision.1 Amendments.
Eligibility is contingent upon good faith participation by the individual and/or parent(s) in the Club’s fundraising activities. ELIGIBILITY Award of Financial Aid is determined by a Committee of the Parent Club Executive Board. Proof of financial hardship shall be provided in written form (see Procedure section). Eligibility is based on the income level test used by Cypress-Fairbanks ISD for reduced price lunches. Individual Kicks & Splits team members or prospective team members. 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. A1. and/or their parent(s). THE COMMITTEE The Committee shall consist of the Dance/Drill Team Director. in the event of such a conflict. Privacy of the individual shall be fully respected. students incur expenses throughout the year that are offset by the Parent Club through financial contributions from team members and/or their parents/guardians.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. are encouraged to contact the Dance/Drill Director or the Parent Club President or Treasurer to discuss situations of financial hardship. Financial Aid decisions may not be made by a Committee member who is related to a sponsorship candidate.16 09/07/2010 . the President(s) and the Treasurer(s). The Committee is responsible for a good faith determination of financial need while respecting the privacy of the individual(s). PURPOSE As a member of the Kicks & Splits Dance/Drill Team. PROCEDURE Requestors should submit a Financial Aid application (see Sheet 3 of this document).
ADMINISTRATION This policy shall be administered uniformly from year to year and shall be applied fairly and equitably to all requestors. whichever is the lower. There is no limit on the number of individuals who may be sponsored in any fiscal year. 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). Financial Aid funds shall be used only to reduce or eliminate the individuals’ normal financial contribution to the Kicks & Splits Parent Club.MECHANISM No funds shall be disbursed directly to any individual. DOCUMENTATION A case history file shall be maintained in accordance with IRS regulations for tax-exempt organizations.17 09/07/2010 .00. SCOPE The total amount of funds available for individual sponsorship in any fiscal year shall be limited to $1.500.00 or 1% of that year’s total planned budget. Financial Aid funds shall not be used for purchase of personal supplies on behalf of the individual(s). 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). The maximum amount of sponsorship for any individual in any fiscal year shall be $500. Adopted ________2010 A1.
Social Security Any Other Monthly Income NAME Signature of Adult Household Member: _________________________________ Printed name: _______________________________________________________ Address Date: : _______________________________________________________ _______/________/_________ 3. 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.955 33.553 +$577 Weekly 519 652 785 918 1. your Kicks & Splits Team Member is eligible for consideration of Financial Aid from the Kicks & Splits Parent Club.976 4. If your total household income is the same or less than the amounts on the chart below. INCOME CHART Household Size 2 3 4 5 6 For each additional member add Annual 26.874 40.247 2.400 3.631 +$6. 2.823 3. Child Support.793 47. Alimony Monthly Income from Pensions.18 09/07/2010 . A1.051 +$134 * Based on the 2010-11 income levels for District students to receive reduced price lunches. Required Information: Name of Kicks & Splits Team Member: _____________________________________ HOUSEHOLD MEMBERS AND MONTHLY INCOME Gross Monthly Earnings Monthly Income from Welfare.919 Monthly 2. Retirement.KICKS & SPLITS PARENT CLUB FINANCIAL AID APPLICATION FORM 1.712 54.
the newly elected officers will assume responsibility for the organization. 2007-08 President Minnie Mouse. please contact one of the officers listed below. 2007-08 Treasurer We appreciate your assistance with these transition details. Vice-President _____________________________ Donald Duck. Therefore. A1. 2008. Treasurer 251-552-1255 ________________________ Peter Pan. Treasurer ________________________ Peter Pan. 2008. To Whom It May Concern: On June 30. 2008 Silver Bank 6577 Mining Road Tarnished. 2007-08 Vice-President Daffy Duck. 2008: EIN: 76-9999999 Remove the following people from the list of authorized signers on the account: _____________________________ Donald Duck. 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.Go Team Go Booster Club PO Box 9622 Houston. President 251-552-7755 _________________________ Mickey Mouse. TX 00003 June 22. Sincerely. President Go Team Go Booster Club is a 501(c)(3) tax-exempt organization. On July 1. please make the following changes to this bank account’s status and authorized signers as of July 1. __________________________ Mickey Mouse. the executive board of Go Team Go Booster Club will resign to coincide with the end of the fiscal year. TX 66978 Re: Account #552113 Go Team Go Booster Club.19 08/01/2008 . If you have any questions.
the newly elected officers will assume responsibility for the organization. Sincerely.) A1.Go Team Go Booster Club PO Box 9622 Houston. __________________________ 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. 2008 Exempt Organizations PO Box 13528 Austin. Our bank and the IRS have been notified of this change as well. On July 1. If you have any questions. TX 78711-3528 Re: Go Team Go Booster Club EIN: 76-9999999 To Whom It May Concern: On June 30.20 08/01/2008 . TX 00003 June 22. the executive board of Go Team Go Booster Club will resign to coincide with the end of the fiscal year. please contact one of the officers listed below. We appreciate your assistance with these transition details. 2008. Attached is a list of the incoming board members for your records.
21 08/01/2008 . We are furnishing this record in accordance with IRS Letter 1045. If you have any questions.Go Team Go Booster Club PO Box 9622 Houston. __________________________ 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. OH 45201-2508 Re: Go Team Go Booster Club EIN: 76-9999999 To Whom It May Concern: On June 30. 2008. the executive board of Go Team Go Booster Club will resign to coincide with the end of the fiscal year. the newly elected officers will assume responsibility for the organization. 2008 Internal Revenue Service TE/GE Room 4010 PO Box 2508 Cincinnati.) A1. On July 1. Attached is a list of the incoming board members. We appreciate your assistance with these transition details. Sincerely. TX 00003 June 22. 2008. Our bank has been notified of this change as well. please contact one of the officers listed below.
or various District groups and clubs. District departments.00 This support will assist the District in continuing to improve the educational environment. The District may receive charitable contributions if they are for public purposes. These charitable contributions are deductible by the contributor on their tax return. then the donation is considered a contribution to the District. contributions made to various parent organizations. are not contributions to the District. Contributions may be made to the District. Estimated Value $ (The estimated value is not verified by Cypress-Fairbanks ISD. The District is not a tax-exempt entity under the Internal Revenue Service (IRS) Code Section 501(c)(3). Furniture. When a PTO or Booster Club donates monetary or nonmonetary items 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. District schools. the District’s tax-exempt status does not apply to these organizations. The amount reported to the IRS is the responsibility of the contributor and not the District. However. the District is considered a tax-exempt organization that may receive charitable contributions according to the IRS Code Section 170(c)(1).Cash. Cashier's Check Non-Monetary Contribution .Cash Receipt #0051001289 was issued. These organizations must apply for their tax-exempt status under IRS Code Section 501(c)(3). Check.00 . Money Order.Check # 02315 . such as PTOs and Booster Clubs.Technology.) Amount $ Type 2. The federal identification number of Cypress-Fairbanks Independent School District is #74-6000654.500.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. Evidence of their tax-exempt status would be a Determination Letter from the IRS. such as benefiting a group and not an individual.500.1 . or Other Description $2. Since these organizations are separate entities from the District. Please note. Updated 03/04/2010 Distribution of Form: Contributor and VIPS / Department Representative B1. TX 77496 Contact Name / Phone Number: Daddy Warbucks / 287-555-1122 Contact Email Address: Dwarbucks@hwood through the contribution of: X Monetary Contribution .
District employees shall not serve in a capacity over the organization’s financial affairs. Treasurer.. 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. 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. Relations with Parents or Parents’ Organizations: “District employees may serve parent organizations as a general member or as a member of its executive board. B2.e.1 09/07/2010 .Authorization for Signer on PTO & Booster Club Bank Accounts According to Board Policy GE (Local). except for the position of Treasurer. Substitute Paraprofessional) Employee’s Signature District Location / Department The District substitute or temporary worker would serve the PTO / Booster Club as: (President. including an authorized signer on the bank account. The written approval must be kept on file with the District’s internal auditor. This approval must be requested and received each school year. 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.
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 . 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. 2. The Principal will return the form to the individual requesting permission. the Operating Report should be provided to the organization’s Treasurer and not the school.Cypress-Fairbanks Independent School District Fund-Raising Activity Report Permission Request Instructions 1. 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 (2 pages) shall be prepared promptly upon completion of the fund-raising activity. If a PTO or Booster Club is holding the fund-raiser. 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
Cypress-Fairbanks Independent School District Fund-Raising Activity Report Operating Report
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
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.
/ / Date
Reviewed and Approved by: Principal or Designee / / Date
Gold C Books. For items remaining on hand. 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.6 . 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. 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. t-shirts. or complete only the Total Sales Amount column. 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. you may want to do the above analysis for each product separately. The Fines and Fees List can not be used by PTOs or Booster Clubs. Sponsor/Person Responsible for Fund-Raiser Attachment A / / Date Revised 08/2010 B.Cypress-Fairbanks Independent School District Fund-Raising Activity Report – Attachment A Catalog / Product Sales Inventory Reconciliation (For wrapping paper. gift items. utilize the overall tally sheet for the orders.2. candy sales.
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. Ticket stubs must be kept as part of the fund-raiser records. Beginning Ticket # Ending Ticket # Less: # of Comp.7 . Sponsor/Person Responsible for Fund-Raiser / / Date Attachment B Revised 08/2010 B. attach list of people that received the complimentary tickets. Band.Cypress-Fairbanks Independent School District Fund-Raising Activity Report – Attachment B Ticket Events with Entry or Participation Fees Ticket Reconciliation (For Athletic. determine the number of tickets sold. the amount of difference is $ Explain the difference below. Total Reconciliation Do the Total Sales from Tickets agree to the Total Collections on the Operating Report? Yes ___ No ___ If No. 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 Fines and Fees List can not be used by PTOs or Booster Clubs. or Drama Events with Entry or Participation Fees) Based on the beginning and ending ticket numbers and less any complimentary tickets.2.
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. attach a sheet listing the people that received the products and the products that they received. Sponsor/Person Responsible for Fund-Raiser / / Date Attachment C Revised 08/2010 B. determine the number of products sold.2. 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.8 . Total Reconciliation Do the Total Sales from Concessions agree to the Total Collections on the Operating Report? Yes ___ No ___ If No. Beginning Inventory Ending Inventory Less: Comp. the amount of difference is $ Explain the difference below.
special purpose districts. partnerships. and transit authorities) may also impose sales and use tax up to 2% for a total maximum combined rate of 8. For information about the tax rate for a specific area. but local taxing jurisdictions (cities.state. See Purchases/Use Tax for additional 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. Does an exemption certificate have to have a number to be valid? No. or sell taxable services in Texas. The information documented below is subject to change by the Texas State Comptroller’s Office. For information on collecting and reporting local sales and use tax. ask for publication 94-183 Sales and Use Tax Bulletin. Please see Rule 3.1 09/07/2010 . see Local Sales and Use Tax Rate Information. C1.tx. The tax rate for sales and use taxes are the same. for the most up-to-date version of this information.window. there are no "tax exempt" numbers. please go to www. firms. and all other legal entities.286 and publication 96-259 Taxable Services for more information. counties. Therefore.us . For state tax purposes. lease tangible personal property in Texas. The requirement to obtain a Texas sale and use tax permit applies to individuals as well as corporations.25%.25%." We also provide tax rate cards for all combined tax rates. 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. You will be required to collect both state and local sales and use tax.” For a list of local tax rates ask for publication 96-132 "Texas Sales and Use Tax Rates. What is the sales tax rate in Texas? The Texas state sales and use tax rate is 6.
2 09/07/2010 . For example. If the business does not receive a preprinted form. This filing requirement will be adjusted based on the amount of taxes that you actually collect. Some sales tax forms are also available via Fax on Demand. and the return must be filed on or before April 20th. you might qualify to file quarterly or yearly returns. a taxpayer can download a blank return at our Tax Forms Online. the first quarter covers January. Texas law requires every taxpayer or licensee who paid a total of $100. the July return will be mailed the first week of August. February. Sunday. C1. the July return must be filed on or before August 20th. you will be instructed to file your tax return on a monthly. the 2002 return will be mailed by the first week of January 2003.000 in state sales and use tax per year may file yearly. Most businesses will file monthly returns. Preprinted yearly tax returns are mailed the first week of the month following the end of the year. or legal holiday the next business day is the due date. 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. the first quarter return will be mailed the first week of April. Yearly sales and use tax returns are due on or before January 20th. Yearly: Taxpayers who collect less than $1. You can request a fax when you call (800) 252-5555. Preprinted quarterly tax returns are mailed the first week of the month following the end For example. but depending on how much tax your business collects. or if you are required by state law to file your tax returns electronically. Quarterly: Taxpayers who collect less than $500 state sales and use tax per month (or less than $1500 per calendar quarter) may file quarterly. For example. or visit the nearest enforcement field office. If the due date falls on a Saturday. To receive a blank return.Texas Sales Tax – Frequently Asked Questions When is my sales tax return due? When you obtain your Texas sales and use tax permit. it is the taxpayer's responsibility to file a tax return and remit taxes on time. quarterly. We send preprinted tax returns to almost all businesses that hold a Texas sales and use tax permit. For example. and March. call us at (800) 252-1389. 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.000 or more in a payment category during the preceding state fiscal year (September 1 through August 31) to pay by EFT. Preprinted monthly tax returns are mailed the first week of the following month. or yearly basis (the determination is based on the volume of sales expected for your business). Monthly: Taxpayers who collect $500 or more in state sales or use tax in a month must file monthly. 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.
Do I owe tax on goods purchased via mail-order catalogs or Internet merchandise? Yes. if you sold a similar sofa for $500 to another customer who issues you a properly completed resale or exemption certificate. hotel or sales tax on items purchased to further the organization's exempt purpose.161 and 3. 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. then your sale and the delivery charge are exempt.3 09/07/2010 . Note: "Delivery. Exemptions: Sales Tax Information for Nonprofit Organizations sales tax Rule 3. If you deliver the sofa for a fee of $50.541 and 3. the use tax is due and payable by the purchaser. 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 refer to Rule 3. then you owe Texas use tax on the purchase. you owe Texas sales tax on the purchase. you sell a sofa to a customer for $500. How do I get a tax exempt number? Let's begin by saying that for state tax purposes. If the out-of-state seller does not have a Texas permit or does not collect Texas use tax. You must file a tax return even if you have no sales for the reporting period or if all your sales are nontaxable. do I still file a return? Yes. You agree to deliver the sofa and charge separate fee of $50 for delivery. If you need a federal employer's identification number." "shipping. or 512/462-7843. You should collect sales tax on $550. In contrast. Certain organizations may qualify for exemption from paying franchise tax.163. franchise tax Rules 3. If you purchase merchandise through a catalog or the Internet from a seller located outside of Texas and use the taxable item in Texas. For example. your $50 delivery charge is also taxable.303. call the IRS. You do not collect sales tax on the $550. the delivery charge is not taxable. 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. and hotel tax Rules 3. there are no "tax exempt" numbers. For more information ask for tax bulletin 94-125. If you purchase merchandise through a catalog or the Internet from a seller located in Texas. A seller who uses catalogs or the Internet to sell goods is treated the same as any other seller of taxable items.573. Because your sale of the sofa is taxable.322.Texas Sales Tax – Frequently Asked Questions If I don't owe taxes. 1-800-829-1040." or "postage" on an invoice represents delivery charges.
then you must compute the tax on the total sum of the sales prices of the taxable items sold.S. if you sell three T-shirts for $10. Tax charts are located on the Sales Tax forms page. 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. and $50. customs broker export certification. You would apply the tax rate to $85 to calculate the sales tax. then the total sum of the sales prices is $85. For example. 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. or an original airway. 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.Texas Sales Tax – Frequently Asked Questions client to distribute tangible personal property to third party recipients designated by the seller's client. The Comptroller will only accept one of the following from the seller to substantiate a claim of export: a licensed U. Sales tax = sales price of a taxable item multiplied by the tax rate. and tangible personal property that you buy to use in performing a taxable service when you transfer the care. 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. import documents issued by a foreign country. C1. If you sell multiple taxable items on one invoice. Is tax due on merchandise I'm going to export? You do not have to collect Texas tax on goods that you export. ocean or railroad bill of lading with freight forwarder's receipt.4 09/07/2010 . but you must keep records to prove export. custody and control of the tangible personal property to your customer. $25.
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.5 09/07/2010 . then you owe tax on the merchandise.Texas Sales Tax – Frequently Asked Questions If you use the merchandise that you purchased tax-free by issuing a resale certificate. value for the period of use or on the purchase price of the item.
the Tax Code recognizes certain federal exemptions for exemption from franchise tax and sales tax.tx. it qualifies for exemption from sales tax and... If your organization has received exemption from federal taxation under 501(c)(3).. please go to http://www. religious. (16). The information documented below is subject to change by the Texas State Comptroller’s Office. for the most up-to-date version of this information.us/taxinfo/exempt/exemptfaq. or (25).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.state.. complete the appropriate application and include the required documentation.. Are 501(c) organizations exempt from state taxes? Not automatically. franchise tax.complete AP-209. (7).complete AP-207. charitable and educational groups with IRS 501(c) exemption should complete the application specific to their organization type. if incorporated. as a homeowners' association. Therefore. Organizations that are exempt because of their IRS status are not exempt from hotel occupancy tax. (6).complete AP-206. If your organization is applying for exemption: as a charitable organization. (5). as a religious organization. Applying for Exempt Status To apply for exemption.complete AP-204.window.6 08/01/2008 .. (8). However. as an educational organization. Exemption from franchise tax is possible if your organization received a federal exemption under 501(c)(2). To receive a hotel occupancy tax exemption. C1... (10) or (19). as any other exemption type.complete AP-205.. (4)..html . Our mailing address is on the application. Complete AP-204 and send it to us along with the required documentation listed on the application.
Sales and Purchases for a list of limited exceptions. If you need a sales tax permit. religious or educational exemption are exempt from state hotel occupancy tax.287.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. When should sales tax be collected? Generally. complete form AP-201 I travel on behalf of my organization. Local hotel taxes are still due. when traveling on official business for the organization. See Rule 3. an exempt organization must give the retailer a properly completed exemption certificate to document the exempt sale. such as a printout from the Comptroller's list of exempt entities. showing the organization is exempt from hotel tax. Am I eligible for hotel tax exemption? Organizations that have been granted a charitable. Effective October 1. C1. My organization has a federal tax identification number. exempt groups must obtain sales tax permits and collect and remit sales tax on all items they sell. See our publication Exempt Organizations . exempt organizations must obtain sales tax permits and collect and remit sales tax on all goods and taxable services they sell. 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.7 08/01/2008 . When purchasing a taxable item. Should an exempt organization making sales collect sales tax? Generally. The certificate must be issued on a timely basis and it must include certain specific information. Does that mean that we are tax-exempt? No. 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. 2003.
public schools.BULLETIN S u s a n C o m b s .” For example. 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.us • Window on State Government: www. Persons buying from surplus inventory on the designated date do not owe tax. 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. 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. “Exempt Organizations. 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.tx.us Call Tax Assistance Toll Free: (800) 252-5555 • Local Number in Austin: (512) 463-4600 C1.help@cpa. school supplies or crafts 94-183 (07/09) Tax Help: tax. See subsection (h) of Rule 3. Surplus yearbooks sold on other days are taxable unless sold at the group’s other tax-free fundraiser.tx. one day is counted as 24 consecutive hours and a calendar year is the 12-month period from January through December.state. uniforms. Surplus yearbooks sold during the same day also qualify for the exemption. 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. For the purposes of this exemption. 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.8 . if the purchases are related to the organization’s exempt function. These days should be designated in advance so that purchasers are aware that the sales are not subject to tax. a school may sell taxable items such as t-shirts.000 unless it is manufactured by the organization or donated to the organization and not sold back to the donor. 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.window. 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. 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.322. The exemption does not apply to any item sold for more than $5. hats. The organization may not collect tax on the transactions and keep the tax under the “tax-free” sale provision. For example.
holding meetings and conducting business.help@cpa. the exempt organization is not considered to be the seller and cannot use a tax-free sale day for this type of event. however. 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. or an exemption certificate. Various other school groups such as a student council. the seller should provide instructions and information regarding the proper collection of tax. A booster club for a band. In these cases. If an exempt organization is purchasing taxable items for resale during its designated tax-free sale days and it holds a sales tax permit. As a result. holiday ornaments. gift wrap. booster club or other exempt organization raises funds by acting as a sales representative or commissioned sales agent for a for-profit retailer. such as a purchasing. is not a bona fide chapter even though it is part of the school or school district. Schools and Bona Fide Chapters To qualify as a bona fide chapter of a school. Form 01-339 (back) to purchase the items tax-free. however. Groups that are not considered bona fide chapters.state. senior class.us C1.9 . school group. but cannot be limited to specific classes (e. A non-permitted exempt organization. The for-profit retailer is then responsible for remitting the tax collected or backed out to the Comptroller. PTA/PTO. Senior English or Biology II). A department of a school. When an exempt organization acts as a commissioned sales agent or representative for a for-profit seller. Non-Qualifying Fundraisers – Acting as an Agent or Sales Representatives When a school.g. accounting. science club or drama club can qualify if they are composed of students and school staff. See the “Nonstudent Nonprofit Organizations” section in this publication for more information. 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.tx. Bona fide chapters can include whole grade levels (e.g. the group receives a commission for holding a book fair or for selling candy. candles or similar items. the organization may either give the retailer a resale certificate. 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. tax-free sales. a group of students must be organized for an activity other than instruction or to have a tax-free sale.window. the group is not responsible for reporting and remitting sales and use tax. unless otherwise qualified to hold the two one-day tax-free sales. 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. may purchase items for resale tax-free by issuing an exemption certificate to the vendor for items sold during its two one-day. Similarly. 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. Bona fide chapters include student groups recognized by the school and organized by electing officers. There is no limit on the number of bona fide chapters a school can have.tx. junior class or freshmen). but may qualify for the tax-free sale days under other provisions of the Tax Code. the event counts as one tax-free sale for each participating organization.S c h o o l F u n d r a i sers and Texas Sales Tax BULLETIN fundraisers. maintenance or IT department. Form 01-339 (front). Non-student organizations such as booster clubs and PTAs/PTOs cannot qualify as bona fide chapters of a school.us • Window on State Government: www.state. Each of those organizations then is limited to one additional tax-free sale during the remainder of the calendar year.
the club can hold two one-day tax-free sales or auctions each calendar year. PTOs. parent-teacher organizations (PTOs) and parent-teacherstudent associations (PTSAs) and organizations (PTSOs) are also eligible for exemption from sales tax as educational organizations. Schools. The exemption certificate should state that the group will sell the items as a fundraiser. The group can issue an exemption certificate in lieu of paying tax on purchases of candy. school groups and Susan Combs • Texas Comptroller of Public Accounts Tax Help: tax.state. along with a copy of its IRS exemption letter. would qualify for the exemption. but does not include sales of alcoholic beverages. 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. are also exempt from sales tax as educational organizations.state. 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 location.help@cpa. A nonprofit organization with an Internal Revenue Service (IRS) exemption under Section 501(c)(3). gum and other taxable food items sold at its concession stand. and PTSOs made at other times of the year are subject to tax. however.us 3 C1.tx. to the Comptroller’s office. PTSAs. These organizations should complete form AP-207 and submit it to the Comptroller’s office. 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. The exemption applies to sales of soft drinks and candy.us • Window on State Government: www. these organizations can also hold two one-day tax-free sales or auctions each calendar year. 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. food. 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. This exemption includes food.tx. (10) or (19) is exempt from sales and franchise taxes. if the sales are part of the organization’s fundraising drive and all net proceeds go to the organization for its exclusive use. (8). PTA/ PTO or other group (such as a booster club) associated with a public or private elementary or secondary school. Food and Beverage Sales A public or private elementary or secondary school. as well as parent-teacher-student associations (PTSAs) and organizations (PTSOs). (4). Parent-teacher organizations (PTOs). An online sale occurring during a one-day tax-free sale. Sales of taxable items by PTAs. After the Comptroller’s office notifies the club of its exempt status. A booster club that has a 501(c) federal exemptions should complete AP-204 and submit it.S c h o o l F u n d r a i sers and Texas Sales Tax BULLETIN other non-student. sodas.window. Once the exemption has been granted. PTAs/PTOs and other qualifying groups associated with a specific public or private elementary or secondary school or school group may also sell meals. nonprofit organizations that accept online orders through a Web site must collect sales tax on taxable items they sell online. Concession Stands Concession-stand food sales are exempt from tax when made by a school group.10 . soft drinks and candy sold through vending machines. PTAs not affiliated with the Texas state PTA or the national PTA.
the food sale must: • be an annual event.state. The annual food sale or banquet exemption does not apply to sales of alcoholic beverages or non-food items (e. crafts or t-shirts). the food and beverages cannot be prepared or served by a caterer or a restaurant.window.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. To qualify for exemption. The exemption does not apply to the sale or purchase of alcoholic beverages. are subject to the Texas 14 percent mixed beverage gross receipts tax when sold by a mixed-beverage permit holder.tx. wine and mixers. without pay). bagels and muffins) are exempt unless sold with plates or eating utensils.help@cpa. Instead.) Car Washes Washing a car is not a taxable service under the Texas Tax Code. Taxable services are listed in “Taxable Services” (Tax Publication 96-259. is not in competition with a retailer required to collect tax. 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. Of course. • be a fundraising project exclusively provided by the volunteers of the participating nonprofit organizations. Gift Certificates and Passbooks Sales of intangibles such as gift certificates and coupon passbooks are not subject to sales tax. and • not be held in competition with a retailer at the same event who must collect tax on food and beverage sales. salsa. cheese spreads. manicure or facial. fresh fruit and mixes packaged for preparation at home. is not held in a restaurant.g. pizza kits. Nontaxable Sales Some items are not subject to sales tax no matter who sells them. • last no more than one week. arts. Amusement Services The sale of an amusement service provided exclusively by a nonprofit organization. Groups holding car washes are not required to collect tax on their charges for this service. and must be prepared and served by the participating organizations’ volunteers. • be non-commercial in every respect (that is. jelly. The tax is based on the item’s actual retail selling price less any cash discount given at the time of the sale (e. meat sticks. including beer. no sales tax is due when the certificate is redeemed. Bakery Items Bakery products (including but not limited to pies. Sales of alcoholic beverages. hotel or similar place of business..tx. Examples of such items include cookie dough. The type of tax due (sales tax or mixed beverage gross receipts tax) depends upon the type of permit held by the selling organization.. a deduction for a coupon). while sales of beer and wine made by a beer and wineonly permit holder are subject to sales tax. other than an IRS Section 4 Susan Combs • Texas Comptroller of Public Accounts Tax Help: tax.state. S A L E S A N D U S E TA X event is not professionally catered. however. Alcoholic beverages are not food products and are taxable.11 .us • Window on State Government: www.g. cakes. if the gift certificate is for a nontaxable service such as a haircut. cookies. served and sold by members of the organization. retailers should collect tax when the certificate or coupon is redeemed for the purchase of taxable merchandise or services. Single issues and subscriptions for fewer than six months are taxable. and the food is prepared.us C1.
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. Periodicals and Writings Periodicals and writings (reading materials including those presented on audio tape. dance. the sale of an admission ticket to a school carnival. historical. videotape and computer disk) are exempt from tax if published and distributed by a religious. gloves and shoes to drill team members. schools and associated groups must collect. it must collect tax on the sales unless it designates their sale as one of its two one-day tax-free sales. charitable.12 . PTSAs and PTSOs may publish and sell printed reading materials such as yearbooks. is exempt from sales tax. directories. including sales made to students. if a school sells uniforms.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. Similar organizations include PTAs. and the item is of proportionate or equal value to the donation. PTSAs and PTSOs.state. S A L E S A N D U S E TA X 501(c)(7) organization. however. This means that PTAs.tx.tx. Items that contain printed materials that can be read but primarily serve other purposes or functions. calendars.us • Window on State Government: www. A “similar” organization must be organized for a benevolent purpose and must not be operated for profit. photographs and novelties.us 5 C1. scientific or other similar organization not operated for profit. School districts. athletic event or musical concert is exempt. other than the exemptions previously identified. schools and school groups. brochures and newsletters without collecting sales tax. 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. For example. 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. PTOs. report and remit sales tax on taxable items that they sell or taxable services they provide to others. For example. before the individual makes any use of the items. are subject to sales tax unless sold during a qualifying and designated tax-free sale or auction. philanthropic. the purchaser is responsible for paying or accruing tax on the item’s purchase price. The school may purchase the uniforms tax-free for resale to the drill team members. such as school logo t-shirts. books. PTOs. binding and item placement. If the purchaser makes use of the item before it is firstname.lastname@example.org. must collect tax on sales of printed reading materials unless the sale is designated as one of the organization’s tax-free fundraisers. A district must collect tax on the sales price of taxable items when selling them to students or to others. The table on the following page is a short list of examples of taxable and nontaxable sales. Schools may issue a resale certificate in lieu of paying tax to suppliers when purchasing taxable items to sell. bookmarks.155[b]). Sales to Students Generally. but exclude all public and private educational organizations. such as a school.window. 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. The qualifying organization may issue a properly completed resale certificate to the printer in lieu of paying tax on charges for printing. magazines.
window.298. “Exempt Organizations” Rule 3.S. 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 information. the products of which ordinarily constitute food for human consumption Cosmetology services such as haircuts.299. manicures and pedicures Parking permits for public school students.window.286. 6 Susan Combs • Texas Comptroller of Public Accounts Tax Help: tax. In compliance with the Americans with Disabilities Act. You can also obtain an application by calling (800) 252-5555 or by visiting one of our enforcement field offices. An application also can be downloaded from our Tax Forms Online page.tx. or disability in employment or in the provision of any services.us/subscribe. yearbooks. write to exempt. 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.tx. roses.irs.state. “Taxable Services” Please use our Texas Online Sales Tax Registration System to apply for a sales tax permit. mice.293.state. Exempt Writings” Tax Publication 96-122. For information on how to apply for federal email@example.com/.state. For questions about an organization’s Texas taxexempt status. musical instruments.state. “Exempt Organizations . programs or activities. contact the U. cats and dogs Publications such as football. “Newspapers. Internal Revenue Service at (877) 829-5500 or online at http://www. Publishers. Food Products. see: Rule 3. cows. chickens and other livestock Sales of advertising space in athletic programs.tx. national origin. The Texas Comptroller of Public Accounts is an equal opportunity employer and does not discriminate on the basis of race. age. sex.322. Meals. library or cafeteria Agricultural products (plants and seeds). “Seller’s and Purchaser’s Responsibilities” Rule 3. Sign up to receive e-mail updates on the Comptroller topics of your choice at www. faculty and staff Farm animals such as pigs. such as hamsters.Sales and Purchases” — Frequently Asked Questions section provides information about school organizations applying for exemption from state taxes. religion. Food Service” Rule 3. 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.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.us • Window on State Government: www.us. shampoo. please use our Texas Tax-Exempt Entity Search. color.tx. Tax Publication 96-259. basketball or volleyball programs Automobile repair parts (a separately stated charge for parts is taxable. (512) 475-0900 (FAX).13 . carnations. “Amusement Services” Rule 3. calculators and computers Horticultural products such as flower arrangements. “Food.orgs@cpa. conditioner and nail polish sold to customers Parking permits for the general public Animals that do not ordinarily constitute food or food products. holiday greenery and poinsettias Cosmetology products such as shampoo. or call Tax Assistance at (800) 531-5441 and ask for the Exempt Organizations Section. auditorium.us C1. Magazines.
00000000-01 C2. PMB 5899 Wallingford. Treasurer Cedar Springs Elementary PTO. Inc. TX 66599 Cedar Springs Elementary PTO. Inc.June Cleaver.1 11/02/2009 .
Cedar Springs Elementary PTO. 01111111 C2. Inc.2 11/02/2009 .
TEXAS SALES AND USE TAX PERMIT ANOTHER FUND-RAISER BOOSTER CLUB PO Box 26584 Houston.3 11/02/2009 . TX 77065-6584 1-30-4686457-1 x E 1-30-4686457-1 le p am 05/01/2008 Mary Smith C2.
Penalties are provided for failure to comply with these requirements.gov/charities To apply for recognition by the IRS of exempt status under section 501(c) of the Internal Revenue Code. most organizations use Form 1023. for the most up-to-date version of this information.) The application must be complete and accompanied by the appropriate user fee. Application for Recognition of Exemption and the related instructions. or by applying online. even if it does not have any employees. Application for Employer Identification Number. See Form SS-4. and its instructions to learn how to obtain an EIN.Application for Recognition of Exemption Section 501(c)(3) The following excerpts were downloaded from the IRS’ website. 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. by calling 1-800-829-4933. Therefore. D1. Frequently asked questions about applying for exemption are also available. (Organizations applying for recognition of exemption under a provision other than section 501(c)(3) generally use Form 1024. The organization should also request an employer identification number.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. You may also obtain an EIN via telephone. The organization must provide copies of these documents upon request without charge (other than a reasonable fee for reproduction and copying costs).irs. please go to www.
D1. A receiver. For a trust. Make sure you indicate the correct IRC subsection for your organization.2 09/07/2010 . as indicated in the letter recognizing your organization's tax-exempt status. § 501(k) or § 501(n) organizations or a § 4947(a)(1) nonexempt charitable trust. All organizations must complete all lines in both columns (A) and (B). Attachments. Reminder: Protect personal information: Do not include unnecessary personal identifying information. if you checked Yes on Part IV. Complete Form 990. The information documented below is subject to change by the IRS. Therefore. Make an entry on all total lines (including zero85 when appropriate). Double-check the accuracy of your EIN. Part X. 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. or indicate on those lines "N/A" (not applicable). vice president. trustee or assignee must sign any return he or she files for a corporation or association. Tax Period and Group Exemption Number (GEN) (if applicable). please go to www. Double check your return to make sure all required pages. § 501(e). or 990-PF). asst. Tips When Filing Form 990 Complete Schedule B (Form 990. Question 2.Taxpayer Tips Common Errors Made by Exempt Organizations Tips When Filing Form 990 The following excerpts were downloaded from the IRS’ website. Balance Sheets.irs. An officer of the organization must sign the return. for the most up-to-date version of this information. this officer may be the president. Complete Schedule A (Form 990/990-EZ) if your organization is required to file Form 990 and is a § 501(c)(3). Answer "Yes". reconciliation sheets and schedules are attached. or attach a schedule including the information and indicate on the applicable line that a schedule is attached. Support Schedule. Be sure to do the following: Complete all applicable parts and line items. line 1. "No" or "N/A" to each question. Include a list of subordinates if filing a group return. the authorized trustee(s) must sign. Complete Schedule A.gov. Part IV-A. § 501(f). For a corporation or association. treasurer. chief accounting officer or tax officer. Enter "None" or "N/A" if an entire Part does not apply. 990-EZ. Sign the return. treasurer. and Form 990.
§ 501(k) or § 501(n) organizations or a § 4947(a)(1) nonexempt charitable trust. if you checked a box (or should have checked a box) on line 10.Taxpayer Tips Common Errors Made by Exempt Organizations Tips When Filing Form 990-EZ The following excerpts were downloaded from the IRS’ website. Make sure you indicate the correct IRC subsection for your organization. Form 990/990-EZ.gov. asst. Double-check the accuracy of your EIN and Tax Period. Unless specifically accepted. 7(b) and 9) during the year exceed the amounts described in Filing Phase-In. vice president. Reason for Non-Private Foundation Status.irs. § 501(e). A receiver. File Form 990 instead of Form 990-EZ if your organization's gross receipts (total of Form 990-EZ. D1. 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. Reminder: Protect Personal Information: Do not include unnecessary personal identifying information. treasurer. except those meeting one of the limited exceptions set out in General Instruction F. Support Schedule. or 990-PF). Part IV-A. For a trust. All organizations. Enter "None" or "N/A" if an entire part does not apply. Sign the return. Make an entry on all total lines (including zero when appropriate). For a corporation or association. "No" or "N/A" to each question. the authorized trustee(s) must sign. An officer of the organization must sign the return. 990-EZ. for the most up-to-date version of this information. Complete Schedule A. 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. trustee or assignee must sign any return he or she files for a corporation or association. Form 990-EZ. Complete Part II. Balance Sheets. § 501(f). please go to www. Complete Schedule A (Form 990) if your organization is required to file Form 990 and is a § 501(c)(3). Lines 5(b). 11 or 12 of Schedule A. if required. Part IV-A.3 09/07/2010 . Indicate "N/A" on lines that do not apply. 6(b). must complete both column (A) and (B) of Part II. The information documented below is subject to change by the IRS. treasurer. Answer "Yes". an organization may not submit a substitute balance sheet. Tips When Filing Form 990-EZ Complete Schedule B (Form 990. Part I. Be sure to: Complete all applicable line items. Be sure to include Schedule A. Therefore. this officer may be the president. chief accounting officer or tax officer.
gov/charities. Number 6. Number 9. titles and positions. Did you complete all required pages? To make a determination. the information contained on the pages and schedules of Form 1023 and Form 1024 is necessary. and planned activities. Number 5. please go to www.4 09/07/2010 . schools. hospitals. It is a good idea to check for consistency. annual compensation. mailing addresses. for the most up-to-date version of this information. D1. Is there enough financial data? See the instructions to Form 1023 or Form 1024 to determine how much information you need to provide. c. based on how long your organization has existed.Top Ten Reasons for Delays in Processing Exempt Organization Applications (Article dated September 19. when. Therefore. In what month does the annual accounting period end? Applications should indicate the end of their fiscal year. Number 10. Number 7. supporting organizations. 2007) The following excerpts were downloaded from the IRS’ website. d. present. on the financial statements. Does the fiscal year ending date stated on the application agree with the fiscal year ending date stated in the by-laws. but explain the specific activities you will carry on to achieve that purpose. and certain other organizations. You should explain past. The information documented below is subject to change by the IRS. and on any prior returns filed? Number 8. You are not required to describe activities that are merely speculative at this time. If you haven't started an activity yet. On Form 1023. You should consider a "who.irs. Did you complete all required schedules? You should check the line items on the financial statements. Did you provide enough information on the activities to show us how your exempt purpose will be achieved? Please don't restate your purpose. b. names. Some lines require supporting schedules. 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. develop your plans well enough that we can have a clear understanding of how it will operate. there are various schedules and pages that must be filled out for churches. scholarships. what. where and why" approach.
or any other document that sets out the organization's rules of operation. did you submit a copy? You need to provide a copy of your by-laws. code of regulations.Top Ten Reasons for Delays in Processing Exempt Organization Applications Number 4. the organizing document must comply with the organizational test for exemption The Number 1 reason for delays in processing exempt organization applications is . Neither a stamped signature nor a faxed signature is permitted. INCORRECT OR NO USER FEE! See our user fee page for more information. or treasurer. secretary. Did you attach a complete copy of your organizing document and all amendments? If the applicant is a corporation. and the date of adoption. D1. this would be a copy of the articles of incorporation that shows it has been filed with and approved by the state. Whatever the document is called. trustee. If there is contact. or bylaws. . principal officer. the agent can address the technical issues that need to be resolved without taking up your time trying to just get a complete application. a principal officer is the president. The document should be signed by at least two members of the organization. vice president. . If your application is completed correctly initially. it must at the minimum state: the legal name. A trust document must be signed by the trustees and show the date of formation. or other authorized individual in a similar capacity sign the Form 1023 or Form 1024? Generally. A taxpayer's representative may not sign the application. and sent with all required documents and schedules. If you have adopted by-laws. Did a director. Number 3. Number 2.5 09/07/2010 . we hope you can avoid them. The person signing the application must indicate his or her title or other authority to sign. the purposes. but only if adopted. articles of association. If the applicant is not incorporated. Now that you know the ten most common pitfalls in the EO application process. This could be a constitution. For section 501(c)(3) applicants. it should have a similar organizing document. there is a good chance your organization could be recognized as exempt with no further contact.
TX 77065-6584 1 x E le p m a D2.1 08/01/2008 .30-4686457 ANOTHER FUND-RAISER BOOSTER CLUB PO Box 26584 Houston.
2 08/01/2008 . TX 77065-6584 x E le p m a D2.30-46864571 ANOTHER FUND-RAISER BOOSTER CLUB PO BOX 26584 Houston.
Another Fund-Raiser Booster Club .
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Thank you for using these guidelines and good luck in your endeavors! Carol Oman. Director of Internal Audit and Pat Stefan. Please contact our office if you have any questions or need other assistance.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. Internal Auditor III The End 09/07/2010 .
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