Financial Update for PTOs and Booster Clubs

Transcription

1 Financial Update for PTOs and Booster Clubs Beaufort County School District September 30, 2014

2 What Kind of PTO/Booster Club Parent are you? The Ruler 2

3 Starting a PTO, PTA, or Booster Club 3

4 Starting a new PTO or Booster Club 1. Determine the name of the organization and its fiscal year end 2. Obtain a Tax ID number (EIN) Easy to get on-line at CANNOT USE THE SCHOOL DISTRICT EIN 3. Open a bank account 4

5 Starting a new PTO or Booster Club continued 4. Register with the Secretary of State Articles of incorporation of a not-for-profit organization (need required IRS language) Registration statement for Charitable Organizations Most PTA, PTO and Booster Club organizations are exempt from registration but an Application for Exemption from Registration must be filed Annual Financial Report (many PTO/PTA organizations probably qualify for exemption-there is a separate form to request exemption) 5

6 Establishing a PTO or Booster Club 5. File for 501(c)(3) status IRS form 1023 Provides exemption from federal income tax under 501 (3) of the Internal Revenue Code Benefit Donations are tax deductible Purchases are tax exempt Annual filing requirements (form 990) 6

7 Applying to be Tax Exempt Gross Receipts Application Annual form 990? $5,000 or less none 990-N $5,001-$50, EZ (new) 990-N or 990-EZ >$50, detailpage&v=-dclkbln8hm detailpage&v=9nmbljvgw1q 7

8 Annual Filing Requirements With Secretary of State With IRS, for 501c3, via form 990 With School 8

9 General Issues 1. Elect officers 2. Establish Bylaws 3. Get Insurance 4. Establish a finance committee 9

10 Officers Treasurer Recruit persons with financial experience Bookkeeping, banking, other finance fields When officers change: Update bank signatures Obtain all financial paperwork from the outgoing member Develop a checklist to include in procedures 10

11 Bylaws Booster Clubs should develop annual review policies to cover: How to obtain administrative approval before beginning projects How to plan and publicize meetings Bookkeeping and fund administration Election of officers Taking, distributing and filing minutes Public communication Proper interaction with staff A sportsmanship code governing behavior of members Plan to support the school, keeping educational goals at the forefront 11

12 Bylaws Visit or 12

13 Finance Committee Establish an annual budget Then present to full PTO for vote Obtain and use financial software (e.g. Excel or QuickBooks) Establish financial policies and procedures Review annual financial reports 13

14 Spend Smart Elementary School PTO Budget Budget Actual Income - Active Fundraising Book Fair - Scholastic 5, , Box Tops 2, , Fall Festival 1, , Spring Festival 2, , Muffins for Moms 3, , Doughnuts for Dads Rubber Duck Regata Pop Top Tabs Coffee Cart Sales Caring Coins Spirit Wear 4, , Misc. Fundraising 2, Daddy-Daughter Dance 1, Transfer to Spend Smart Elementary School 10, Sub-Total Active Fundraising 35, , Expenses 5, Box Tops 2, Fall Festival 1, Spring Festival 2, Muffins for Moms 3, Doughnuts for Dads Rubber Duck Regata Pop Top Tabs Coffee Cart Sales Caring Coins Spirit Wear 4, , Misc. Fundraising 2, Daddy-Daughter Dance 1, , Transfer to Spent Smart Elementary School 10, , Sub-Total Expenses 35, , ,

15 Recommended Financial Controls Develop and use a budget Perform audits annually Volunteer Finance or audit committee Require two signatures on all checks Establish strict rules about original receipts for reimbursement of expenses Reconcile bank accounts monthly and review Prepare periodic financial reports Present to the organization board Provide annual financial reports to school 15

16 Recommended Financial Controls-Handling Cash Set up one cash point (no matter the event) with at least two people Create a paper trail Deposit immediately or the next morning at the latest Don ts Ever take IOUs Ever mingle personal or school cash with club cash Ever provide loans 16

17 Recommended Financial Controls No receipt, no reimbursement Use reimbursement forms Use tickets or equivalent for reconciliation purposes 17

18 Recommended Financial Controls Bad checks Don t order merchandise until deposits made Make sure they have name, address and phone number of person signing check No post-dated or pre-dated checks Have a club service charge in addition to the bank charge Don t accept another check from someone who has written bad check until restitution is made in a different and timely manner 18

19 Fundraising Notify the Principal Must comply with District Policies: District Wellness Policy when involving food during school day Insurance (when applicable) Building Modification Approval 19

20 Raffles Now are legal in the State of South Carolina Must have filed with Secretary of State (SCSOS) Must be a tax exempt organization Submit annual raffle form with $50 fee to SCSOS May hold up to 4 raffles per year 90% of net receipts of raffle must be spent on charitable purpose Section SC Code of Laws Search on Raffles in South Carolina 20

21 Website This presentation is available on the District s website Parents& Students PTAs, PTOs, and Booster Clubs 21

22 Contacts Tonya Crosby, CPA Financial Services Officer Phone: (843) Reggie Murphy, CPA Director of Internal Controls Phone: (843)

23 We Appreciate You