PARENT SUPPORT ORGANIZATIONS Booster Clubs and PTO’s

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Purpose The purpose of a booster club is to assist and support, but not to dictate, the operations of a school, program, activity or student organization. Educational programs or activities are directed by the administration, as agents of the Governing Board. Selection of participants in athletic or other activities is the decision of the coach or sponsor. Interference by individuals or the organization may result in non-recognition by the Governing Board.

Help is Available Governing Board Policy KJA and Regulation KJA-R provide more detailed information. On the District website, under the Parent tab, is a “Parent Support Handbook”. Training for officers is mandatory. Two in-person sessions will be conducted by the District. Officers to attend if possible. Online training is available for those who cannot attend an in-person session.

Establishing the Organization Parents meet with administrator Elect/draft officers President, Vice President, Secretary, Treasurer, ??? Signers of checks Recommend requiring two signatures on checks. Need one or more additional signers for when one is out of town. Employees at the school where the club is organized may not serve as officers or check signers.

501(c)(3) Status? Status makes donations tax deductible. Registration process is detailed, but not difficult. Not required to form a corporation. Sample articles of incorporation on p.14 of Parent Support Handbook. Maintaining status requires an annual report to IRS. Form 990; which form 990 depends upon the amount of money raised. Consult IRS website for information. If a corporation, an annual report is due to the AZ Corporation Commission. Donations are not eligible for AZ tax credit, even if 501(c)(3).

By-Laws Pages 16-20 in Parent Support Handbook – Sample Bylaws The group’s bylaws must be consistent with the sample, but may differ. Officers Officers (President, Vice-President, Secretary, Treasurer) Constitute the Executive Board Bylaws should be reviewed annually.

Meetings Scheduled in accordance with bylaws. Meetings, agendas and minutes of Executive Board and general membership meetings shall be posted on the group’s or school’s website. Meetings shall be held at the school so accessible to all. The principal, assistant principal or coach/sponsor, as applicable, will be invited to attend all meetings, including those of the Executive Board.

Recognition by the Governing Board Insurance will cover booster clubs, PTO, etc. IF the group has been recognized by the Board. Apply for HUSD Board recognition/approval thru principal. Form in Parent Support Handbook under the parent tab on District website. Would be available from your administrator. Form, with attachments, are to be submitted by August 1. (September 1 in 2018) Administrator/sponsor notifies group of Board recognition/approval.

Insurance Recognized parent support organizations are covered by the District’s insurance. There is no need for the group to purchase additional liability insurance.

“Unofficial Support Groups” Support groups that are not approved by the Governing Board may not use the name of the school to raise funds for a student activity. E.g., A non-approved group of parents who want to support the Badminton team at Williams Field, but don’t want to satisfy the requirements to be recognized as a booster club may not call itself the “Williams Field Badminton Booster Club”.

Separate Entity from School Does not speak for the school. Cannot obligate the school to fulfill the organization’s commitments. Work in harmony with the coach or sponsor, site administrator/principal. Plan expenditures for the benefit of the school or activity. The principal or responsible administrator must approve the scheduling of events planned by the club.

Too Little Oversight by Officers Money Problems Treasurer or other officer takes some or all of the money No one looks at bank statements Can go on for a long time before discovered Money handlers for event do not turn in all of the funds.

Bank Account Do NOT let it be linked to a personal account. Need records. Bank Statements Check Registers ATM/Debit cards can create problems, as a single person makes the expenditure.

Fund-Raising Events Form for fund-raiser approval in handbook- page 13 Must be approved by principal or assistant principal. Jointly with a student club, requires Board approval Proceeds to be split between groups proportionately to effort put into the activity by the group and the students.

Student Activities Fund All money earned by efforts of students are “student activity funds”. A.R.S. § 15-1121 requires that these monies be deposited with the Student Activities Treasurer in the District’s Financial Services Department. Money is expended upon an order of the student group.

Student Clubs and Teams Proceeds are to be split between the PTO or booster club and student clubs or activity, including athletic teams. All clubs and teams have student activity accounts into which money raised by the student efforts are to be deposited. For elementary schools, that will normally be Stuco, although there can be other clubs.

RAFFLES Adult booster clubs, PTO, any similar support group MAY lawfully conduct raffles. Statute was amended in last few years, so you may hear differently. Previously, Had to be a 501(c)(3) organization Had to have been in existence at least five years No longer required.

Limitations on Raffles Students may NOT participate in the conduct of the raffle. For example: Passing the can at games for a 50/50 raffles Selling tickets, whether at school or elsewhere No one in the organization may receive any direct or indirect monetary benefit. The maximum annual amount received from all raffles is ten thousand dollars.

Planning Expenditures At the beginning of the year, the administrator and the booster club will each prepare a list of the proposed projects for the year, in order of priority. The administrators and club representatives will meet to create a consolidated list. The list will be forwarded to the Superintendent. The Superintendent (or designee) will compile the consolidated list if agreement cannot be reached.

Undertaking Projects Funding requests are to go through the principal or assistant principal, not directly to the booster club. The administrator must approve requests to go to the club. Money donated directly to the school or activity or purchases for the school are to be for purposes identified on the consolidated lists or other approved projects. Needs that arise after the list is prepared, may be funded, as agreed by the club and the administrator.

Spending Funds Raised A booster club is to use all funds raised in the school year for the benefit of the school or activity during that school year, with these exceptions: The club may keep a reasonable amount for the beginning of the following school year. The club may retain funds it is saving for a particular purpose that requires a significant expenditure.

How are funds used? The annual report to the Governing Board Requires listing of projects undertaken during the year for which more than $500 was spent. Identifies the amount retained in the club’s treasury at the end of the year. The form is in the Parent Support Handbook, page 9.

Dissolution A club can be dissolved in one of two ways, in either case, all money in the treasury is to be donated to the school or activity the group has supported. The group votes to discontinue operating. The Governing Board does not approve the club to continue as a recognized group. In this case, the club may request approval for the next school year, with different officers.

Review Questions How often does a booster club/PTO have to apply to the Governing Board for approval/recognition? What officers usually make up a club’s Executive Board?

Review Questions How much money can a club carry over to the following school year? Where, besides this PowerPoint, can you find information concerning the operations of the club?

Review Questions How are members kept informed of the business conducted by the Executive Board? What is to be done with money earned through the efforts of students?

Thank You You should now know or know where to find information to lead your PTO or booster club. Good luck to your organization!