These guidelines are designed to assist Booster Club officers and their members with a basis for organizational and financial guidance.
EXECUTIVE BOARD
The traditional Executive Board shall consist of a President, Vice President(s), Secretary, a Treasurer and an optional President Elect.
STANDING COMMITTEES
The traditional Standing Committees shall consist of Chair positions to oversee activities.
PLANNING BOARD
The Planning Board may consist of the Executive Board Officers, the Chairs of the standing committees, a member of Administration, and past Booster Officers.
Suggestive Notes:
1. All current members in good standing have voting privileges of the election of Executive Board Officers. A quorum constitutes a majority.
2. The Executive Board shall serve for a term of one year or not more then (3) years.
STANDARDS FOR MEETING
Notice of all meetings of the booster club should be published with a minimum of seventy-two hours notice to your supporters and members prior to the meeting date. The notice should clearly indicate the date and time of the meeting and the items to be discussed.
BY-LAWS
Each booster club must maintain bylaws that need to be reviewed on an annual basis by your officers, directors and program administrators. The bylaws must address the organization’s fiscal year, structure and the method to be used to elect officers.
MEMBERSHIP
The rules of membership shall be clearly stated in the bylaws. Only active members in good standing shall be permitted to hold office or vote upon any matter of business of the booster club.
ELECTION OF OFFICERS
The election of officers of the organization will occur annually within the timelines and manner prescribed by the booster organization bylaws. Typically the election of officers should occur a few months prior to the end of each year so that the newly elected officers may be in place for the start of the next club season. The transfer of records and audit of the accounts should be complete prior to the existing officers stepping down.
Officers may be elected in a variety of methods (simple majority, secret ballot) in accordance with the organization’s bylaws. The election of officers should be from a slate of officers presented by the nominating committee. Recommendations may also be taken from the floor at the time of the vote in accordance with Roberts Rules of Order. At no time should officers be appointed without the input and approval of the membership.
POSITIONS/OUTLINE
President: The President shall be the chief executive officer of the club. It shall be his or her duty to preside at all meetings; to have general and active management of the business of the booster club; to see that all orders and resolutions are carried into effect; to executed all contracts, agreements, and other obligations and instruments in the name of the booster club. He or she shall have the general supervision and direction of the officers of the booster club and shall see that their duties are properly performed. He or she shall be ex-officio a member of all standing committees and shall have the general duties and powers of supervision and management usually vested in the office of president of a company.
Vice President: The vice-president acts as the president’s representative in his/her absence. They must remain familiar with the organization. The major duties include, but are not limited to, the following:
• Preside at meetings in the absence or inability of the president to serve;
• Perform administrative functions delegated by the president;
• Perform other specific duties as outlined in the bylaws of the organization.
Note: Larger booster organizations may find it necessary to elect several vice presidents with responsibility over differing areas. Such positions shall be clearly defined in the bylaws of the organization.
Secretary: The secretary shall attend all meetings of the booster club and the executive committee, if any. He or she shall act as clerk thereof and shall record all of the proceedings of such meetings in a book kept for that purpose. He or she shall give proper notice of meetings and shall perform such other duties as the executive board may from time to time prescribe or require. The major duties include, but are not limited to, the following:
• Report on any recommendations made by the executive board of the booster organization if such a governing board is defined by the bylaws;
• Maintain the records of the minutes, approved bylaws and any standing committee rules, current membership and committee listing;
• Record all business transacted at each meeting of the association as well as meetings of any executive board meetings in a prescribed format;
• Maintain records of attendance of each member;
• Conduct and report on all correspondence on behalf of the organization;
• Other specific duties as outlined in the bylaws of the organization.
Treasurer: The treasurer shall have custody of the funds and securities of the booster club and shall keep full and accurate accounts of receipts and disbursements in books belonging to the booster club and shall deposit all moneys and valuable effects in the name and to the credit of the booster club in such depositories as may be designated by the executive board. He or she shall disburse the funds of the booster club in such depositories as may be ordered by the executive board, executive committee or directors, taking proper vouchers for such disbursements, and shall render to the directors, whenever they may require it, an account of all his or her transactions as treasurer and the financial condition of the booster club at the regular meeting. He or she shall perform such other duties as the executive board may from time to time prescribe or require. The major duties include, but are not limited to, the following:
• Serve as chairperson of the Budget and Finance Committee if prescribed within the bylaws of the organization;
• Issue a receipt for all monies received and deposit said amounts on a weekly basis (daily if receipts on hand exceed $ 250.00);
• Present a current financial report to the executive committee and general membership within thirty days of the previous month end;
• File current financial reports with the campus principal on a monthly basis;
• Maintain an accurate and detailed account of all monies received and disbursed;
• Reconcile all bank statements as received and resolve any discrepancies with the bank immediately;
• File sales tax reports as required by the comptroller’s office (monthly, quarterly, or annually);
• File annual IRS forms in a timely manner;
• Submit records to audit committee appointed by the organization upon request or at the end of the year;
• Other specific duties as outlined in the bylaws of the organization.
Note: Due to the increasing requirements placed on charitable organizations by the Internal Revenue Service, it is strongly recommended that the Treasurer have an accounting background.
President Elect: The president elect shall operate in the capacity of vice president, paying particular attention to the duties of the president. The following year the president elect will reside as president. He or she shall perform such other duties as the executive board may from time to time prescribe or require.
ADDITIONAL POSITIONS
VP Public Relations: Responsibilities include media exposure, working liaison between coaching staffs and booster club, Administrative support liaison between the main boosters and all other booster clubs.
Media Relations Chairperson: Responsible for providing exposure and awareness of school functions (i.e. games, rally’s, special events). In charge of placing and securing various media advertisements. Develops and implements campaign to contact media reporters and staff to increase event attendance. In charge of arranging booster and club meetings for use of school facilities. Develops future media contact campaigns (i.e. e-mail, fax, etc.).
Newsletter Chairperson: Responsible for gathering articles and publishing the monthly newsletter.
Membership Chairperson: In charge of developing and implementing membership drives, media packets and promotional literature. Works to educate coaching staffs as to the value of the booster club.
VP Fundraising: Develops annual schedule of events, oversees all fundraising activities to insure they fall within the schools guidelines and that no two groups are in conflict or competition. Works to develop an alliance with local businesses to help fund annual events.
Corporate Relations Chairperson: Primary focus is to develop a working relationship with local companies. Develops and implements a “business awareness” packet that is given to local businesses to make aware of the boosters/school’s mission. Works with co-chairpersons to insure each event is successful.
Raffles Co-Chairperson: In charge of developing and overseeing the various club raffles. Works to insure no conflict between the various booster clubs and helps to implement policies and procedures for conducting raffles.
Golf Tournament Co-Chairperson: In charge of developing the tournament schedule, vendors, sponsors, and works with media relations co-chairperson for exposure of the even.
Food Event Co-Chairperson: Oversees event and works with VP of Fundraising to secure food, drinks, etc. Works with media chairperson to secure exposure.
VP Activities: Works to develop awareness of the various school activities and functions. Works with co-chairpersons to insure we are staffed so that no “one person” becomes overwhelmed with their respective duties. Develops a policy that will insure all activities receive equal exposure.
Concessions Chairperson: In charge of overseeing all concession events, inventory control, buying, and scheduling. Works with Public Relations to insure that all clubs are offered the opportunity to co-participate with concessions during the year. Makes sure concessions are stocked and open for all events. Performs annual audit at the end of the school year.
Clothing Chairperson: In charge of buying, inventory, design and product conformity. To oversee the selling of booster clothing at the maximum number of school events as possible (i.e. Freshman Orientation, Sports Clearance Night, Open House, Games).
VP Special Needs: Works to insure all groups and clubs are provided fair and equal opportunities. Works with the AD, coaching staffs and clubs to develop “wish lists” and implement plan of actions.
Parliamentarian: The primary duty of the parliamentarian is to advise the presiding officer on parliamentary law and matters of procedure when requested. The president or presiding officer of the organization alone has the power to make decisions or rule on a point of order. Thus, after the parliamentarian has given his advice, the presiding officer must make the ruling to the organization – he is not obligated to follow the recommendation of the parliamentarian. The parliamentarian should be thoroughly familiar with the bylaws and any standing rules of the group on which he serves. A copy of Roberts Rules of Order Newly Revised should be maintained by the organization and referenced as needed.
Special Committees: Special committees are created for a specific purpose and voted upon by the membership. The committee is automatically dissolved as soon as that purpose is accomplished and the committee report is made.
Nominating Committee: The nominating committee is formed from the organization’s membership each year. The purpose of the committee is to recommend various members of the organization for office in the coming year. The nominating committee should be charged with soliciting recommendations for officer positions within the organization. The committee should then contact the potential candidate directly to ascertain their willingness and desire to serve. The nominating committee should report back to the membership on their results so that elections may be held.
Audit Committee: At the end of the fiscal year, an audit of the booster club’s financial records should be conducted. The audit should be performed by someone who is independent from day-to-day financial activities. Ideally, this audit should be performed by a group of three individuals; however, if the membership size does not allow, the audit may be performed by two individuals. The primary objectives of the audit are to:
• Verify the accuracy of the Treasurer’s financial reports;
• Ensure that the club’s cash balances are accurate;
• Determine that established procedures for handling booster funds have been followed;
• Ensure that expenditures occurred in a manner consistent with the organization’s bylaws;
• Ensure that all revenues have been appropriately received and recorded.
The audit committee shall make a report to the general membership upon completion of the audit. Any discrepancies noted shall be brought to the attention of the president of the organization and a resolution reached prior to presentation. All officers of the organization shall make records available as requested by the committee.
State and Federal Reporting
Application for State Registration
• Booster Clubs must file its articles of incorporation with the Secretary of State’s office as a non-profit association. Typically, an attorney licensed in the State completes the articles of incorporation. Further information may be obtained on the Secretary of State’s web.
• Each organization must file for an employer identification number on Form SS-4, Application for Employer Identification Number. It is possible to apply for an employer identification number via a telephone call. The employer identification number will be issued immediately by the Internal Revenue Service during the call process. However, the organization is still required to file a form SS-4 with the IRS.
• In most cases the booster club can apply for an exemption from sales and franchise tax from the Comptroller’s office. This is done by written request, which includes a description of activities, copies of articles and bylaws. The state may require you to wait until you have filed for Federal tax exemption before they will issue you this exemption. If this is the case you will need to file a copy of the IRS letter granting tax exemption at the time of your request.
Application for Federal Tax Exempt Status
• General instructions for federal tax exemption may be found in IRS Publication 557, Tax-Exempt Status for Your Organization.
• The booster organization must apply for exempt status on Form 1023, Application for Recognition of Exemption Under Section 501(c)(3).
• The application must be accompanied by Form 8718, User Fee for Exempt Organization Determination Letter Request, which provides a user fee to be paid to the Internal Revenue Service. Typically, this fee for groups whose yearly gross receipts average less than $10,000 is $400. For groups with gross receipts expected be average $10,000 or more the fee is $850.00.
• Each application must include a signed copy of the organization’s Articles of Incorporation filed with the state and an approved copy of the bylaws.
• Upon acceptance by the Internal Revenue Service of the organization’s exempt status, a determination letter will be sent as evidence of approval. The letter should be kept in a safe, permanent place as it will be used time and again to prove the organization’s exempt status.
• Further information may be found on the IRS web site, at http://www.irs.ustreas.gov.
Annual Filing Requirements
Every booster organization exempt from federal income tax under section 501(a) is required to determine the type of annual filing, Return of Organization Exempt from Income Tax.
Organizations with gross receipts during a year totaling $25,000 or less may qualify for the shorter version of the form, Form 990-EZ.
Even though booster clubs are recognized as tax exempt, they may be liable for tax on the portion of income deemed to be unrelated business income (“UBI”). UBI is income from a trade or business activity, regularly carried on that is not substantially related to the charitable, education or other purposes that are the basis for the organization’s exemption. An organization that has $1,000 or more gross income from UBI must file Form 990-T, Exempt Organization Business Income Tax Return. This form is filed in addition to Form 990 or 990-EZ and is required regardless of the level of the income received. More information can be obtained from Publication 598, Tax on Unrelated Business Income of Exempt Organizations.
Public Disclosure
A nonprofit organization must provide copies on request of its original application for tax exemption, including any supporting documents filed by the organization in support of its application, plus any letter document issued by the IRS in connection with the application. In addition, the organization must provide copies of its annual IRS information returns for the past three years, including all schedules and attachments. When a request for information is made in person, the booster organization is required to furnish the requested information immediately under IRS guidelines. If the request is in writing, the documents must be furnished within 30 days from the date of the request.
Organizations are exempt from the above requirements if they have made the documents widely available, such as posting them on a web site, or if it can be demonstrated that the requests are part of a harassment campaign. If the organization elects to post the information on a web site, specific IRS criteria must be followed which produces an exact reproduction of the information – HTML format is not acceptable.
Accounting for Transactions
Method of Accounting
There are a wide variety of computerized accounting packages available to assist your booster club in accurate financial reporting – manual record keeping is not the recommended method of reporting. Rather, each booster club should adopt an accounting package or computerized accounting method to be used for several fiscal years. Establishing records in a spreadsheet format is perfectly acceptable, although somewhat cumbersome. It is preferable to adopt an accounting package for long-term use. The packages chosen should be reviewed on a biannual basis for effectiveness and accuracy of financial reporting. Packages should also be evaluated based upon their ease of use and overall cost, both financial and training, to the organization.
At a minimum, the membership should be provided with a financial statement and bank reconciliation at each meeting. The financial statement should detail the budget to actual expenditures and receipts. Cash receipts and disbursement reports should be available for review when needed or at the annual audit.
Cash Receipt Procedures
All cash collections received by the booster club for fees, dues, fund raising, etc. must be deposited upon receipt. All funds must be supported by some type of record documenting the source and amount of funds (tabulation of monies collected form, cash receipt form, ticket sales record, etc.). Such documentation shall be readily available for audit purposes.
Deposits shall be made daily if the total receipts on hand exceed $250. If daily receipts are less than $250, deposits shall be made within one week even if the receipts for all days combined are less than $250.
Bank deposits should be prepared as follows to ensure the integrity of the financial reporting:
1) Separate all currency and coins by denomination and carefully count and record it in the appropriate section of the bank deposit form.
2) A tape may be run of any checks included in the deposit rather than indicating the checks individually on the deposit slip form. A copy of the tape should be retained with your copy of the deposit records.
3) Total the deposit slip.
4) Tally the pre-numbered cash receipts and make certain that this total matches the deposit total.
5) Attach the cash receipt verification with a copy of the deposit slip and file in date order.
6) For large deposits, have another individual independently count the currency and verify that the currency has been correctly recorded on the deposit slip.
7) Both individuals should initial the deposit slip next to the currency amount on the deposit slip.
8) Seal the deposit in a deposit bag in the presence of the second individual. This is called dual control and places the organization in a better position to challenge any claim that the bank may make that the currency received was not correct.
Petty Cash
Each booster club may maintain a petty cash account. Strict controls must be maintained by keeping petty cash in a locked box accessible by only the treasurer and one other officer. PLEASE NOTE: Control of the petty cash account by a school district employee is usually not allowed. The petty cash funds should be used for emergency purchases only. All other purchases should be made with a booster club check.
Bank Reconciliation
Upon receipt of the monthly bank statement, the balance indicated on the statement shall be reconciled to the bank account balance in the general ledger as of the last day of the month.
Items needed for reconciliation:
• Bank reconciliation form
• Prior month’s bank reconciliation
• Bank statement
• Check Register and/or Cash Disbursements Journal
• Cash Receipts Journal
• General Ledger
To complete the bank side of the reconciliation form, perform the following steps:
• Indicate the ending balance per the bank statement.
• Check off outstanding checks from prior month’s bank reconciliation using the bank statement.
• Determine the outstanding checks by comparing the Check Register to the bank statement, including any remaining checks from the previous month.
• Determine the deposits in transit by comparing the Cash Receipts Journal to the bank statement.
• Identify any items that need to be corrected by the bank, such as check printing, returned check charges and material encoding errors. These items should be grouped together under Other Adjustments.
• Total all items and enter the amount on the Adjusted Bank Balance line.
To complete the General Ledger side of the reconciliation form, perform the following:
• Indicate cash account ending balance from the general ledger.
• Compare the bank statement to the Check Register and list any cleared checks that were not posted.
• Indicate any outstanding returned checks.
• Indicate the interest earned per the bank statement. This amount should be immediately posted.
• Identify any items that need to be corrected on the General Ledger (such as immaterial encoding errors) under Other Adjustments.
• Total all items and enter the amount on the Adjusted Cash Balance line.
Compare the adjusted bank balance to the adjusted cash balance to make sure that they are in agreement. If they are not, the reconciliation is NOT complete. Examine the prior month’s reconciliation to ascertain that all items have been posted and/or corrected.
If at all possible, a computerized reconciliation program should be used in conjunction with the booster club’s financial package.
Disbursement of Funds
All requests for disbursement must be made from established budget line items. If a request exceeds the budget or is for an item not previously included in the budget process, a vote of the membership must be taken prior to expenditure. Direct payments and gifts to employees and alcoholic purchases are not permitted uses of booster funds.
A disbursement voucher should be completed for all expenditures regardless of the amount. The appropriate supporting documentation (invoices, receipts) should then be attached to the disbursement form and filed in check number order. At no time should a check be issued without the appropriate supporting documentation.
1099 Requirements
Internal Revenue Service guidelines require that all payments for services in excess of $600.00 made to an individual or company by a booster club be reported on a form 1099 on an annual basis. The booster club should secure an IRS form W-9 from the provider at the time of service to ensure that the booster club has an accurate record of the tax payer identification number. The booster club must then issue a form 1099 to all qualifying vendors performed in the calendar year by January 31st. The following guidelines can be used to determine if reporting is required:
• Risk of profit of loss – Independent contractors realize a profit or sustain a loss based on their success in performing the work or service.
• Continuing relationship – The relationship between an independent contractor and employer ends when the job is done.
• Compliance with instructions – Independent contractors cannot be told when, where, or how to do the job.
• Training – Independent contractors do not go through any type of instructional training period with a more experienced employee to learn how to do the job. Independent contractors specialize in the field in which they have been employed and do not require training.
• Personal Service required – The right of an independent contractor to substitute another’s services without the employer’s knowledge shows that one particular individual’s personal services are not being required by the employer.
• Integration into the business – The success or continuation of the business is not dependent on the independent contractor’s performance of the service.
• Control over the hiring, supervising, and paying of assistants – Independent contractors maintain control of their assistants. The employer contacts the independent contractor if there is a problem, and the employer pays the independent contractor for the work done. The independent contractor then pays the assistants directly.
• Set hours of work – An independent contractor sets working hours.
• A full-time work requirement – An independent contractor has the availability to work for more than one client.
• Working for more than one firm – An independent contractor has an established business in which they work for more than one firm.
• Worker’s availability to the general public – An independent contractor makes services available to the public on a regular and consistent basis.
• Working on the employer’s premises – An independent contractor works off-premises unless the nature of the service to be performed requires attendance at the employer’s work site.
• Required work order or sequence – An independent contractor does not need to be told in what order or how to do a job as he/she is considered an expert in the field.
• Required reports – An independent contractor is not required to submit oral or written reports.
• Payment by the hour, week, or month – An independent contractor is paid in a lump sum fee basis when the job is done. An invoice must be generated to substantiate the payment.
• Payment of business or travel expense – An independent contractor is responsible for his/her own business or travel expense. If paid by an employer, the employer must include the expense amount in the independent contractor’s 1099 (unless you can verify an accountable plan).
• Furnishing of tools and materials – An independent contractor has the necessary tools and materials to do the job.
• Investment in facilities – If the independent contractor maintains an office on the employer’s premises, he/she must pay a rent or lease payment for the office space as well as the overhead.
• Employer’s discharge rights – An independent contractor cannot be terminated as long as he/she is fulfilling the contract.
• Worker’s termination rights – An independent contractor may be held financially responsible for any loss the employer may suffer due to an incomplete, inaccurate or unsatisfactorily completed contract.
The Internal Revenue Service web site should be accessed for appropriate 1099 reporting requirements and forms at http://www.irs.ustreas.gov.
Sales Tax
Taxable Status of Purchases
• A booster club must provide the vendor with a valid signed exemption certificate when claiming state sales tax exempt status. Exemption certificates do not require numbers to be valid nor is the vendor required by law to honor the exemption.
• A School District exemption status may not be utilized by booster clubs to secure exemption from sales and excise taxes. Booster clubs must apply for their own exemption.
• Items which become the personal property of the participant (cheerleader uniforms, band t-shirts, etc.), even though connected with a school or organization, are not exempt from tax. Items which are purchased by the organization through budgeted funds as an award to a participant are not taxable.
• Meals purchased by the booster club for athletic teams, bands, etc. on authorized program trips are exempt from sales tax if the booster club contracts for the meals. The booster club must pay for the meals with a booster check and provide an exemption certificate.
• Individual members of the athletic team, band, etc., may not claim exemption from the sales tax on the meals they purchase while on a program authorized trip.
Collection and Remittance of Sales Taxes
The booster club shall collect sales tax on all taxable sales according to their State tax.
When imposing sales tax, the organization has the option of:
• Adding the tax to the item’s selling price – thus, if the selling price of an item were $2.00 and the tax rate were 7.25%, the booster club would collect $2.15 ($2.00 x 1.0725) from the buyer for each item sold.
• Absorbing the tax in the item’s selling price – thus if the item sold for $2.00 including tax, the booster club would retain $1.86 and remit $0.14 for sales tax. If this method is used, divide the total sales by 1.0725 (assuming a tax rate of 7.25%) to find the taxable sales. To determine the sales tax amount, subtract the taxable sales from the gross sales.
Taxable Status of Sales
Booster clubs need not collect sales tax on the following:
• Admission tickets;
• Club memberships;
• Sale of food and soft drinks sold during a regular school day, subject to an agreement with the proper school authorities;
• Food and drinks sold at booster club events and carnivals;
• Vending machine sales;
• Meals and food products, including candy and soft drinks, served in an elementary or secondary school during the regular school day;
• Candy and food items sold through fundraising drives by booster clubs or students of the school or program who are under eighteen years of age;
• Two tax-free sales of otherwise taxable merchandise per calendar year, per organization are allowed. A record of the sale must be maintained in the minutes of the organization.
Therefore, state and local sales taxes (where applicable) shall be imposed and collected on all sales for:
• Items sold by the booster club store (i.e. hats, seat cushions, jackets, etc.);
• Any type of booster club materials;
• Any other item sold as personal property (i.e. team pictures, uniforms, sweaters, etc.);
• All sales of items such as handicrafts, T-shirts, candles, cups, books, and school supplies sold by a booster club during a fundraising drive;
• All other personal property except for those items specifically excluded above.
Sales tax should be filed in accordance with the State Comptroller’s guidelines (typically on an annual basis). Further information can be found on your State Comptroller’s web site.
Fundraising
General Fundraising Policies
The IRS has a strict rule against private inurnment – the transfer of any of an organization’s assets to, or for the benefit of, an individual for a nonexempt purpose. Therefore, individuals may not control any fundraising accounts set-up in their name, nor may they withdraw funds from the “accounts” to use as they wish. The tax-exempt organization must at all times determine how its funds, even funds credited to an individual with respect to their fundraising efforts, are used. And, all funds must be used for the organization’s tax-exempt purposes.
The IRS also prohibits earmarking of contributions. You cannot make a tax-deductible contribution to a tax-exempt organization and earmark or designate the funds donated for the support of a specific individual. If you could, parents could make tax-deductible contributions that they earmarked to pay for specific expenses of their own child.
Raffles
Booster clubs are permitted to hold raffles but need to establish guidelines to insure compliance with state and federal regulations:
• Each ticket must indicate the name and address of the organization, name of an officer, price of the ticket and a description of each prize valued at $10 or more. For prizes valued in excess of $10,000, check with your state gambling regulations to insure compliance;
• Each booster club should limit its raffles to no more than two raffles per year and only one at a time;
• Tickets may not be advertised through paid advertising;
• A raffle prize should not be cash;
• The booster club must have the prizes in its possession before beginning the raffle or look to post a bond for the full value with the county clerk;
• Only members of the booster club should sell the tickets;
• The winner must pay income tax on any prizes. If the value exceeds $600, the booster organization must provide an IRS form 1099 to the recipient;
• Phone solicitation is never a good idea to promote the event and may violate local and state gambling regulations.
Bingo
A booster club should review all applicable state and federal regulations for bingo. Detailed rules may be obtained from the State Lottery Commission by requesting a copy of the States Bingo Act, the Charitable Bingo Rules and Bingo Operations Manual. In most all cases a Charitable Bingo may not be advertised prior to actually receiving a license from your state. You will need to review the state requirements, which traditionally include the maximum number of events allowed per year.
Suggested Guidelines:
• The game must be open to the public;
• A prize may not exceed $500 in any single game or a series of prizes may not exceed $2,500.00 per occasion. In the event merchandise is donated, the actual retail value may not exceed these limits;
• The dollar amount to be awarded at the games should not be advertised;
• Door prizes or other free promotions should not allowed at a bingo event;
• All bingo supplies and equipment must be purchased from a licensed distributor;
Donations
DONATIONS TO STUDENTS: Booster Clubs are discouraged from giving gifts to students and those engaged in extracurricular activities. Depending upon the student’s status providing a gift may be a violation of the state or collegiate regulations.
DONATIONS TO BOOSTER CLUBS: To be deductible as a charitable contribution, a payment to a booster club must be a gift. A gift to a booster club is a payment of money or transfer of property without receipt of adequate consideration, and must be done so with a true donation intent. Generally Accepted Accounting Principles require that the asset be recorded at its fair market value at the time of the donation.
Scholarship Programs
The WSBCA encourages scholarship programs which meet the following criteria:
• The application process must be clearly communicated, and the application forms must be readily available to all potential applicants and their parent and/or guardian.
• The Scholarship Review Committee must consider all qualifying applicants.
• The Scholarship Review Committee must to be appointed by the President of the booster club before the announcement for accepting applicants.
• The Scholarship Review Committee must be made up of an odd number (5-7) of members (parents from the Booster Club who do not have children eligible for consideration for the scholarship, interested teachers, campus administrators, and/or the sponsor). Many times the sponsor is an ex-officio member of the Scholarship Review Committee and not an actual voting member so that the sponsor is a source for additional information/input to the Scholarship Review Committee and a final review resource for the Scholarship Review Committee decisions.
• The qualification criteria for selection of scholarship winners (if any) must be communicated in writing to all potential applicants and may not be changed during the scholarship award period. Any changes to the scholarship qualification criteria must be recommended by the sponsor and voted on by the booster club membership no later than the first regularly scheduled booster club meeting prior to the announcement for scholarship applicants.
• The application scoring, decision materials, tabulation, notes, certified recordings, and/or any other documentation used by the Scholarship Review Committee in connection with a given applicant shall be made available upon written request to that applicant. An open records request fee may be charged for this service. Scholarship Review Committee should retain the original materials for a minimum of seven years.
• All completed applications must be turned in by a set deadline.
• All scholarship applications which do not have the required information will be considered incomplete and returned to the applicant.
• The applicant’s intended major may or may not be a factor in scholarship consideration.
• The applicant’s enrollment in an accredited institution (college, university, trade school, military academy, etc.) should be a requirement for receiving scholarship funds.
• The scholarship committee may require an essay for judging purposes. Essay topics may be selected each year and given to all applicants, or the Scholarship Review Committee may allow each applicant to select their own topic upon the sponsor’s approval.
• If desired, essays should be original works of the applicant and be a minimum of 250 words and a maximum of 500 words. It is appropriate to require that the applicant relinquish all rights to his/her work. If an applicant is applying for multiple scholarships, the applicant must write multiple essays – the same essay should never be used multiple times. Essays must be submitted with the application in order for the applicant to be considered for a scholarship. The essay should account for no less than 10% and no more than 20% of the total points or weighting for the decision process.
• Other areas where scholarship points may be earned should include responsibility, character, outside activities, leadership, academics, attitude, behavior, attendance, participation, service, involvement, attitude, and others at the sponsor’s discretion.
• The Booster Club may or may not require interviews of applicants in the decision process. If an interview is part of the process, it must be communicated no later than the end of the first grading period of the academic year. The applicant’s parent or guardian must be permitted to be present at any interview. Interview topics must be communicated to the applicant not less than seventy-two hours prior to the interview.
Discounted Bulk Mail
To be eligible for the minimum rate per piece, the booster club should apply to the local post office for a nonprofit permit by providing the postmaster with the following:
• A copy of the Internal Revenue Service exemption ruling;
• Completed application to mail at Special Bulk Third Class Rates for nonprofit organizations;
• Copy of the booster club’s bylaws.
When mailing by bulk third class, there must be no less than 200 pieces, which must be identical in size, weight, number of enclosures and content. The pieces must be pre-sorted by zip code and bundled with an identifying label on each bundle. In order to ensure compliance with bulk mail regulations, it is recommended that you have the local post office review all the pieces prior to printing to make sure that the organization meets all the requirements for bulk mailing.
The Washington State Booster Club Association
“Providing Booster Club – Guidance – Education – Training & Support”
Want a Copy of this?
If you would like us to send you a pdf version of this, complete the form below.
REQUEST FORM
