Effective Booster Practices Megan E. Greulich Staff Attorney Ohio School OSBA leads the way to educational excellence by serving Ohio s public school board members and the diverse districts they represent through superior service, unwavering advocacy and creative solutions.
Legal Structure Unincorporated Associations Nonprofit Corporations Easy to form More costly/time consuming to form Contributions are generally not taxdeductible Possible personal liability Contributions may be tax-deductible Possible indemnification from liability
BUILDING RELATIONSHIPS
Board recognition Generally, a booster group s most valuable asset is its association with the school district School districts should: Formally recognize approved booster groups (via resolution) Establish parameters for using the district s name, logo or mascot
Board recognition Shared understanding of what groups must do to maintain board recognition Examples: Provide copies of charter documents/bylaws Provide list of officers and contact information Provide a proposed budget Provide proof of insurance Bond key officers Annual audits Assurances that the group will comply with all relevant district and board policies and procedures OSBA Model Policy KMB Relations with Booster Organizations
Succession planning Create a pass-along book Relevant policies/administrative guidelines Flowcharts of relevant processes Sample forms, letters, templates, etc.
MONEY MANAGEMENT
Money management At a minimum, booster treasurer should prepare on a monthly basis: A balance sheet A profit and loss statement Bank reconciliations Financial reports should be reviewed by booster club and as a recurring item during board meetings.
Money management Bank accounts Require dual signatures on checks Never pre-sign blank checks Audits Should be composed of a few members of the organization Conduct a review of the financial activity of the organization on a yearly basis Consider the need for an annual independent audit
Cash handling procedures Before the event Prepare a revenue potential Establish event procedures/guidelines During the event Assign cash boxes/drawers to individuals who will be collecting cash Ensure only individuals assigned to collect cash are doing so After the event Immediately after the event, have cash collectors re-count monies and sign off on a coin and currency count sheet Cash should be accompanied by count sheets and receipts from point of sale Adequately safeguard money until deposit occurs
Money Management Deposit guidelines Disbursements Transfer of responsibility Records and documentation
Attorney General Registration OAG now requires booster groups with gross receipts of $25,000 or more to register annually (OAC 109:1-1-02) Registration includes: Annual report including tax information Submit copies of documents: Articles of incorporation Bylaws Constitution IRS determination letter of tax-exempt status Notification of any revocation of tax-exempt status from IRS Notification of dissolution of organization Pay annual fee ($50-$200 depending on amount of assets held) http://www.ohioattorneygeneral.gov/charitableregistration
RISK MANAGEMENT
Additional insurance options General liability to cover accidents and injuries to individuals Directors and officers to cover the personal liability of officers and directors for their legal responsibilities serving the group Property to cover loss of property/assets to the organization, such as damage to facilities, owned and rented equipment and property/inventory related to fundraising programs Bonding to cover loss of funds to embezzlement and the like
Criminal records checks Not required by law Best practice to require checks for officers, employees and any volunteer who will have access to students
DONATION MANAGEMENT
Accepting donations RC 3313.36 Board may accept or deny any donation EXCEPT board may not accept a donation if the conditions remove any portion of the public schools from control of the board. Once accepted, donations become public money and may not revert back to private use.
Accepting REALLY BIG gifts Before construction begins, board should pass a resolution: Require satisfactory evidence of the financial ability of the group to complete the project in a timely manner Permit boosters to enter district property for construction purposes State that the district has no responsibility for equipment brought to and left at the site by the boosters Require boosters to provide full security for the equipment/site Review requirements for permits, zoning approval, etc. Construction contracts should outline the project, timeline, responsibilities of parties, liability, etc.
Accepting REALLY BIG gifts Not covered by competitive bidding if boosters undertake construction of the gift totally independent of the board Board should not accept gift until construction is complete There are different ways to structure these gifts. Work with your board counsel to discuss your best options.
Requests for assistance Any requests for assistance should be run through district administrators Funding request forms Helps to avoid: Lack of inventory control Lack of fund oversight Unbalanced expenditures between groups Unnecessary liability for support organization
Title IX Prohibits sex-based discrimination in educational programs and activities that receive federal funds Donations may result in Title IX issues if funds aren t equally distributed between boys and girls programs Equivalent benefits and services Preference can be granted to one team over another, provided the difference is balanced in other areas of the athletic program so that total offerings for males and females are equal Board s responsibility to correct any imbalance
FUNDRAISING
Raffles and gambling Unless permitted by statute, gambling for profit in Ohio is illegal. Raffles 501(c)(3) may conduct a raffle; do not need a license Not a 501(c)(3) may conduct a raffle; at least 50% of the net profit from the raffle must be given to the school district Persons under 18 years old may sell raffle tickets, as long as they do not sell them at the site of the raffle (OAG 2004-042)
Raffles and gambling Schemes of chance 501(c)(3) entity that has been in continuous existence for at least two years All proceeds, minus the cost of prizes, must be turned over to the organization Activity may not be conducted within 10 hours of a bingo game
Raffles and gambling Games of chance (scheme of chance PLUS) Cannot be craps for money or roulette for money Conducted at a festival sponsored by the booster club for at least 4 consecutive days or less and is not held more than twice a year; OR five consecutive days and is not held more than once a year Conducted on the premises owned by the booster club or leased from a governmental unit, veteran s organization or fraternal organization Booster groups should consult legal counsel before engaging in gambling activities.
Alcohol sales Requires F, F-2 or F-6 permit Alcohol for the event must be purchased from an allowable supplier Permit holder must notify the chief peace officer of the date, place, time and duration of the event Except for F-2 permits, if the event is held w/in 500 feet of school, church, library, public playground or township park, applicant must notify the appropriate entity that it s applying for an alcohol permit and the entity has an opportunity for a hearing prior to permit issuance. OHSAA guidelines prevent sale of alcohol before/after sporting events (no tailgating)
Individual Fundraising Accounts Students receive credit toward fees by selling items for fundraisers IRS has stated that IFAs are prohibited in charitable organizations Charitable organizations only are permitted to be organized for a charitable or educational purpose When an individual receives a direct financial benefit directly related to their fundraising activities, the IRS calls it private inurement, which contradicts the purpose of the charitable organization
Individual Fundraising Accounts What should it look like? Money should go to the entire team When money goes to the entire group, the benefit is not to the individual, but rather, to fulfill the booster organization s purpose (educational/charitable) All fundraising should be voluntary
COMPENSATION
Compensation OEC 2008-01 the coaching opinion RC 2921.43 Prohibits a person from accepting additional compensation for performing his or her official duties Support group may not compensate the coach or supplement the compensation the coach already is receiving from the district District is the ONLY lawful source of compensation for coaching duties Booster group could make a voluntary gift to the district. District then can use the $$ for any permissible purpose. Nominal gifts
OSBA resources Legal hotline 855-OSBA-LAW OSBA Publications https://www.ohioschoolbo ards.org/catalog/publicati ons/effective-boostergroups-and-supportorganizations
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