Parent Support Organizations Mandatory Training August 18, 2018

Transcription

1 Parent Support Organizations Mandatory Training August 18, 2018 Vnet & GPS Finance

2 TRAINING AGENDA I. Purpose of Training II. Definition and Role of the Parent Support Organization (PSO) A. Types B. Role III. Relationship between PSO, School & District A. School Administrator Support & Campus Guidelines B. GPS Board Approval C. Independent but Provided Benefits 2

3 TRAINING AGENDA (cont d) IV. PSO Operational Guidelines A. PSO Formation and Organization 1. Formal or Informal? 2. Organization Elements B. Financial Responsibility 1. Budget 2. Cash Control Best Practices 3. Monthly Reports C. Fundraising 1. With Students 2. Raffles 3. Crowd Funding 3

4 PURPOSE OF TRAINING Provide support to school and/or program Understand organizational best practices Provide direction to parent groups and staff Prevent issues from occurring Ensure relevant District policies are being followed 4

5 Definition and Role of PSO s 5

6 Definition of Parent Support Organizations Parents who earn money for a school or one of its programs must become a recognized Parent Support Organization. These recognized Parent Support Organizations include PTOs, PTAs, PTSOs, PTROs, and Booster Clubs. 6

7 Parent Support Organizations (Cont d) Parent support organizations may choose to join the State and National Parent Teacher Association (requires payment of membership dues annually). Organization becomes a local chapter of a national non-profit corporation. 7

8 Role of Parent Support Organizations To promote and contribute assistance to provide resources in the area of educational programming, fund-raising, School/District representation, social events, and encouraging parent involvement in the school community. 8

9 PSO, SCHOOL & DISTRICT RELATIONSHIP 9

10 Relationship with School Comes First Obtain approval and support from school administrator. 10

11 Relationship with District is Important Parent Support Organizations are separate legal entities. You are an important component of the School District. Cooperation between the two is critical to have success. District Oversight Better able to fulfill Purpose Provides liability coverage protecting PSO event participants held on school property Able to work with students and use of the school facilities 11

12 PSOs Require GPS Board Approval A. Must annually apply for Governing Board approval valid for one year from approval date B. Application must include: 1. Most recent treasurer s financial report 2. Most recent bank statement 3. Current bylaws 4. Last fiscal year AZ. Corporation Commission Annual Report C. If new, application must include: 1. Articles of Incorporation 2. IRS Determination Letter 12

13 GPS PSO Application Form APPLICATION FOR GOVERNING BOARD APPROVAL GILBERT PUBLIC SCHOOLS PARENT SUPPORT ORGANIZATIONS FOUND AT: ne.aspx?portalid=63564&pageid=

14 District Provided Liability Insurance The Arizona School Risk Retention Trust insurance policy includes liability insurance for parent support organizations as long as their meetings and activities are approved and co-sponsored by the school administrator, and the organization is approved by the District Governing Board Arizona School Risk Retention Trust The Trust The Arizona School Risk Retention Trust, Inc. (the Trust), provides indemnity protection exclusively to Arizona school districts and community colleges. As a non-for-profit corporation, the Trust provides school districts with property and liability coverage and related services. Within the coverage agreement, the term Covered Party includes in part: (section over the coverage agreement) Any parent teacher organization, by whatever name called, or other similar organizations approved by the District, but only for liability arising from activities performed by and/or for the benefit of the District. 14

15 GUIDELINES FOR OPERATION PSO Formation 15

16 ORGANIZATION TYPE Determine if group is: Formal? Informal? 16

17 FORMAL NON-PROFIT CORPORATION. A. Advantages 1) Donations are tax deductible 2) No personal liability for Board and Officers as long as acting reasonable and prudent 3) More fundraising opportunities available B. Disadvantages 1) Cost involved and time-consuming to establish* 2) Requires diligent annual reporting by succeeding Officers and Board with penalties attached for non-compliance. 17

18 INFORMAL NON-PROFIT ORGANIZATION A. Advantages Inexpensive, simple to establish. B. Disadvantages 1) Donations are NOT tax deductible. 2) Personal liability (if negligence is established) may attach to Officers and Board members. 3) Board members may be held personally responsible for contractual obligations which they have signed. 4) IRS may determine that annual net income of the organization is subject to Federal income tax. (As of 2008, all Non-profit Organizations that raise any amount of money must file a tax return.) 5) Members may be held financially liable for taxes owed. 18

19 BECOMING A FORMAL NON-PROFIT CORPORATION A. Contact Arizona Corporation Commission at ecorp.azcc.gov/entity (click Create. Click Non-profit ) for application for Non-Profit Corporation. (Application Fee is $40.) Every year an annual report is required by Arizona Corporation Commission listing current officers. (Annual fee is $10) B. File IRS Form SS4 to obtain a taxpayer I.D. number at Click Employer ID Numbers. (EIN) 19

20 BECOMING A FORMAL NON-PROFIT CORPORATION (Cont d) C. Develop and adopt a set of organization Bylaws, establish officers of organization. D. Establish checking account with two signatures required on all checks. 20

21 BECOMING A FORMAL NON-PROFIT CORPORATION (Cont d) F. To obtain 501c (3) Status 1. File online IRS form 1023-EZ (3 page document) for groups under $50,000 annually and pay $275 fee 2. File online IRS form 1023 for groups raising over $50,000 annually Application for Recognition of Exemption (26 page document) and pay $850 fee G. Submit Annually Tax form 990 (Organizations over $50,000) or Tax form 990-EZ (under $50,000) or 990-N (e-postcard) (under $50,000) to maintain non-profit status. 21

22 BECOMING AN INFORMAL NON-PROFIT CORPORATION A. File IRS Form SS4 to get a taxpayer I.D. number. (You MAY NOT use the District Tax I.D. number). B. Develop and adopt a set of organization By-laws, and establish officers of organization. C. Establish checking account with two signatures required on all checks. *All Informal Groups are encouraged to become a corporation through the AZ. Corporation Commission. It is a one time fee of $40, then $10 annually. Personal liability is now borne by the corporation instead of the member 22

23 GUIDELINES FOR OPERATION PSO Organization 23

24 ORGANIZATION A. Develop and adopt By-laws - the governing document - that shall include the organization purpose, a dissolution clause, provisions for amendment, and provisions for changing officers when necessary. B. Establish officers that most often include a president, vice president, secretary and treasurer. A minimum of three officers is required. C. Include a section on election of officers, membership and definition of quorum for your organization. D. The advisor of the school-related organization (the Principal, Coach or Teacher) shall not be a non-voting member and shall act in an advisory capacity only. They CANNOT be officers of the organization or signatories on the checking account. E. No GPS Employee may be an officer or bank account signatory. F. Produce and make available to members Minutes of each Board and Membership meeting and maintain them in the organization s permanent records. 24

25 GUIDELINES FOR OPERATION FINANCIAL RESPONSIBILITY 25

26 Annual Budget Develop goals and an annual budget plan for the organization. Plan activities for the year based on the budget and goals. All Parent Organizations shall have a budget prepared and approved at the beginning of each fiscal year. Budgets will change. Refer to By-laws on how to amend. Income (Inflows, Revenue) should equal Outflows, Expenditures) Established organizations can (and should) include carry-over amounts in the budget. 26

27 FINANCIAL RESPONSIBILITY BEST PRACTICES 3 Key Duties Recordkeeping Authorization Cash-handling 27

28 Recordkeeping The Treasurer shall produce a monthly financial report after the receipt of each bank statement, usually at monthly meetings. 28

29 Report shall identify all income sources during the month and shall be reconciled with the deposits on the bank statement. Report shall itemize all expenses paid during the month, listing by date, check number, who it is written to, description of expense, and dollar amount. Report cash balance shall be reconciled to cash balance on bank statement. Copies of report and bank statement (with account number not showing) shall be made available to board members monthly and any other members that request or show interest. 29

30 FINANCIAL AUDIT An audit or financial review shall be conducted at the completion of each fiscal year and upon a change of the treasurer by an independent third party, certified CPA, or an elected/selected audit/financial review committee as specified in the By-laws. Reports shall be kept permanently. 30

31 Authorization A. TWO signatures are required on all checks. It is HIGHLY recommended that a debit card NOT be used. B. Monthly bank statements shall be mailed to the school address or to an organization s PO Box, not to an individual s home. C. All account signers shall have online access to the banking records and should review them frequently. 31

32 Guidelines for Financial Responsibility 3. TWO signatures are required on all checks. 4. Debit Cards o May only be used by authorized signers. o A Debit Card Purchase Form requiring two signatures should be used. o Debit card receipts should be submitted to the Treasurer and kept ion the financial records. 5. Checks and Debit cards should never be Authorization

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34 Parent organizations are discouraged from compensating employees but if desired: A. Request MUST be processed through the school through an epar for the employee so that proper payroll deductions are withheld. A. A Request to Donate form must be completed. 34

35 Cash-handling Money collected through fundraisers and other organization activities shall be accounted for, verified in writing, and prepared for bank deposit by TWO members of the parent organization. 35

36 9. ORGANIZATION DISSOLUTION 9. When an organization dissolves, assets must be allocated according to the organization s by-laws and to another non-profit organization. 36

37 GUIDELINES FOR OPERATION FUNDRAISING 37

38 FUNDRAISING APPROVAL A. Approve fundraiser at an Organization Meeting. B. All fundraisers must directly benefit GPS and its students in order to be covered by GPS Insurance and held on GPS School property. C. Fill out fundraising form and submit it to the school to be approved and signed. D. As a courtesy, the School/District should be notified of all activities. 38

39 Fundraising Guidelines/Policies A. Fund-raisers co-sponsored by a parent support organization, school site council and/or student club organization shall have a pre-arranged division of revenue between the groups before the activity is begun. B. When co-sponsoring a fundraiser, determine where the monies will be deposited (usually the PSO) and keep accurate accounting of the funds. Each group shall have an accounting of the fundraiser. 39

40 Fundraising Guidelines/Policies A. Fund raising activities by student organizations that cause District students to go into the community to make sales on a door-to-door basis are strictly prohibited. B. Students cannot be compelled to participate in fund-raising activities. C. Parents shall NOT run Student Club Fundraisers. They may volunteer to work WITH the students only. Student Club Fundraisers are to be student ran. D. Parent Support groups shall NOT deposit any monies into any employee account. This includes coaches clinic/camp LLC s. 40

41 DONATIONS TO SCHOOL OR STUDENT CLUB A. All donations given to a school or student club need to be deposited into a donation account, Fund 530. If the donation is over $100, a "Request to Donate Equipment, Services, Cash to Gilbert Public Schools" letter needs to be filled out and sent in to the District Finance Office with the donation account deposit to allow for approval by the GPS Board of Education 41

42 RAFFLES A Raffle is defined as fundraiser where a collection of money is required in order to win a prize. It does not matter if the item is a ticket, a pen, a hot dog or a lollipop. Raffles may not be conducted by district organizations or students. A PTO that is set up with their own tax identification number, however, may conduct a raffle. No STUDENTS or EMPLOYEES are to sell any of the tickets. This event may not be advertised or sponsored by the district through any means, including or school s web page. 42

43 RAFFLES - Arizona Revised Statutes ARS Raffles D. A nonprofit organization that is a booster club... May conduct a raffle that is subject to the following restrictions: 1. No member, director, officer, employee or agent of the club or organization may receive any direct or indirect pecuniary benefit other than being able to participate in the raffle on a basis equal to all other participants. 2. No person except a bona fide local member of the sponsoring club or organization may participate directly or indirectly in the management, sales or operation of the raffle. 3. The maximum annual benefit that the club or organization receives for all raffles is ten thousand dollars. 4. The club or organization is organized and operated exclusively for... nonprofit purposes and no part of the club s or organization s net earnings inure s to the personal benefit of any member, director, officer, employee, or agent of the club or organization. Additionally, the Arizona Attorney General Opinion strictly prohibits students involved in raffles. (I83-018) 43

44 CROWD FUNDING No "go fund" pages may be created by ANY district employee. A PTO that is set up with their own tax identification number may create a "go fund" page for fund raising. This event may not be advertised on the district s or school s web page. 44

45 QUESTIONS 45