1 Booster Club/Parent Organization GuidelinesMarch 2016

2 Parent Organizations Board Policy GE(LOCAL) Relations with Parent Organizations revised in October 2015 PTO’s, PTA’s, Booster Clubs Responsibility of each organization to seek professional legal and tax advice District is not liable March 2016

3 Parent Organizations should:Be voluntary and provide unified support for the school or student group supported Encourage involvement by all parents Comply with applicable UIL guidelines (page 27) Comply with District administrative regulations and Board Policies Pay all taxes and other debts incurred by the organization March 2016

4 Parent Organizations should NOT:Be involved in decision or policy making activities for student group Give anything to students without prior approval from school administration Give cash to any school employee to use at his/her discretion Contract an individual to work directly with students without prior approval from the District Use the District’s tax identification number March 2016

5 Legal Formation Articles of Incorporation: file with TX Secretary of State By-laws (sample on page 10) EIN (Employer Identification Number) Application for federal tax exempt status – 501(c)(3) IRS Form 1023 or 1023 EZ Current filing fee of $400 or $850 depending on gross receipts State tax-exempt status (franchise & sales tax) Annual filing requirements: IRS Form 990 or Form 990-N Failure to file for 3 years will result in loss of tax-exempt status March 2016

6 District RequirementsEach year, submit the following to the campus principal: Registration and Approval Form (page 18) By-laws List of officers and contact information (page 19) Minimum of three officers required: President, Secretary, Treasurer Annual Financial Report Audit Committee’s Review Report March 2016

7 Annual Financial Report and Review Committee’s ReportAnnual Financial Report must detail actual revenues and expenditures for the year (sample on page 22) Appoint an audit committee within the organization to review the report and finances of the organization (Individuals on the committee should be independent from the day-to-day financial activities) sample review procedures on page 20 Objectives of the review should include: Verifying accuracy of financial records Ensuring cash balance is accurate Determining that established procedures have been followed Verifying that expenditures were properly approved Ensuring that all revenue has been received, deposited and recorded March 2016

8 Fundraising Fundraising Application for Outside Organizations required if activity will occur on District Property [requires approval of campus principal, Athletic Director (if using stadium), Athletic Coordinator (if athletic booster), and Internal Auditor] Fundraising not allowed during school day Tickets (raffle, BBQ, etc.) or sales brochures cannot be distributed to students at school and students may not sell or solicit for these groups Student fundraising must be done through District Student Activity Fund accounts Food sales on campus must comply with Nutrition Policy as applicable (must wait 30 minutes after the end of the official school day) March 2016

9 Concession Sales Comply with applicable City of Mission Food Handling certification requirements Must provide Texas Driver’s license or Texas ID to scan through Raptor System Athletic Events (concession sales) – District will issue ID badges to approved members Approved fundraising application must be posted at concession sale site March 2016

10 Raffles Only qualified nonprofit organizations may conduct rafflesMust be 501(c)(3) organization (exempt from federal income tax) Unauthorized raffles are considered gambling under the Texas Penal Code, may be subject to Class A misdemeanor for conducting and Class C misdemeanor for participating Raffles may not be held on school property March 2016

11 Individual Accounts Monies of tax-exempt organizations must benefit a group as a whole instead of benefiting individual members of a group. Benefits given by a tax-exempt organization cannot be based on participation in a fundraiser or based on monies raised individually. If a member decides not to participate in a fundraiser, that individual’s child cannot be excluded from benefiting from the fundraiser and cannot be penalized in any way for not participating. March 2016

12 Finances District employees are restricted from handling parent organization funds during regular school hours or when acting as an employee of the District. A District employee shall not have control or signature authority over a parent organization’s funds. A member of a parent organization should have a child enrolled at the campus served by the organization in order to have signature authority over the organization’s funds. Monies cannot be held or stored at the campus March 2016

13 Recommended Financial ControlsRequire two signatures on checks Reconcile bank account monthly Prepare a monthly Financial Report and present to general membership Issue receipts for money received, deposit timely, and deposit directly into the organization’s bank account Keep invoices and store receipts to support disbursements Maintain permanent records on file, keep all other records on file for at least seven years March 2016

14 Important Websites Mission CISD - www.mcisd.netHome Page>About Us>District Departments>Student Activity>Files UIL (University Interscholastic League) Internal Revenue Service https://www.irs.gov/Charities-&-Non-Profits/Annual-Electronic- Filing-Requirement-for-Small-Exempt-Organizations-Form-990-N- e-Postcard Texas State Comptroller Texas Secretary of State - March 2016

15 Questions? March 2016