1. Booster Clubs PTA Class of 2009 You are an officer – NOW WHAT ??

2. Three Primary Responsibilities 1. Pay close attention to what’s going on and make decisions based on good information.

3. Three Primary Responsibilities 2. Put the welfare of the organization above other interests when making decisions.

4. Three Primary Responsibilities 3. Act in accordance with the mission and goals of the nonprofit organization.

5. Steps to secure nonprofit status  A purpose  A name  Officers  Form of organization  Governing documents

6. Form of organization  Nonprofit association  Nonprofit corporation Seek competent legal advice to make this decision.

7. Governing Documents  Nonprofit association  Nonprofit corporation  Articles of incorporation  Bylaws Seek competent legal advice.

8. Steps to secure nonprofit status  Federal Tax Identification Number  IRS Application for exemption  State Application for exemption  Sales tax permit

9. Federal Tax Id Number  Form SS – 4  www.IRS.gov  Can be filed  Online  Telephone  Fax  Mail

10. IRS Application for exemption  Form 1023  within 27 months  Filing fee  $300 if <$10,000  $750 if >$10,000  Publication 557  Seek competent tax advice

11. IRS Application for exemption  Public disclosure requirements  Form 1023, and  All supporting documents  Any letter or document issued by the IRS with regard to the application

12. IRS Application for exemption  Already exempt and need a verification letter?  (877) 829-5500 or write to Internal Revenue Service EO Customer Account Services P.O. Box 2508 Cincinnati, OH 45201

13. Texas Application for exemption  PTA  No application form

14. Texas Application for exemption  PTA  Affiliated with state association?  Yes – Send  Letter from state association acknowledging affiliation  Cover letter requesting exemption

15. Texas Application for exemption  PTA  Affiliated with state association?  NO – Send  Cover letter requesting exemption  Statement of operation as NPO  Schedule of activities

16. Texas Application for exemption  Other PTOs  No application form  Send  Cover letter requesting exemption  Statement of operation as NPO  Schedule of activities

17. Texas Application for exemption  Booster Clubs  First - MUST have federal tax exemption  Then - submit AP-204 with copy of federal determination letter  Additional documentation listed on AP-204

18. Sales Tax Rules  Texas Administrative Code  Title 34: PUBLIC FINANCE  Part 1: COMPTROLLER OF PUBLIC ACCOUNTS  Chapter 3: TAX ADMINISTRATION  Subchapter O: STATE SALES AND USE TAX

19. Sales Tax Rules  Rule § 3.322  Exempt from sales and use tax on purchases for the organization’s own use

20. Sales Tax Rules  Rule § 3.316  NOT exempt from collection and remittance of sales tax on items sold

21. Exceptions: Rule §3.316  Meals and food products  Annual banquets or suppers NOT professionally catered  Amusement services  Membership dues  Publications

22. Exceptions: Rule §3.316  Auctions, Rummage Sales and Other Fund Raisers:  Exempts occasional sales by persons not in the business of selling, leasing or renting

23. Exceptions: Rule §3.316  Auctions, Rummage Sales and Other Fund Raisers:  Allows for two (2) ONE DAY sales during any 12 month period  One day sale is literally 24 hours.  A two day sale uses both of the allowed annual one day sales.

24. Exceptions: Rule §3.316  Fund raiser in which items are sold over a period of several days or weeks  Exempt if there is ONE collection date for turning money in.  Qualifies as one of the two allowed annual one day sales.

25. Exceptions: Rule §3.316  VERY IMPORTANT that there only be one collection date for turning the money in or the entire fund raiser becomes subject to sales tax!

26. Sales Tax Rules  Already exempt and need a verification letter?  Exempt Organization Search: http://window.state.tx.us/taxinfo/exe mpt/xmptsearch.html  Request for Verification online: Request for Verification http://www.window.state.tx.us/taxinfo /exempt/xmpt_ltr_req.html

27. Sales Tax Rules  Application for Resale Certificate  AP-201  http://window.state.tx.us/taxinfo/ta xforms/ap-201.pdf

28. Annual Federal Reporting  Form 990 -EZ or Form 990  Not required if annual GROSS RECIEPTS < $25,000  If filed, must be available for public inspection

29. Form 990 -EZ  Annual Gross receipts <$100,000 AND  Total assets <$250,000  Seek competent tax advice

30. Form 990  Annual Gross receipts >$100,000 OR  Total assets >$250,000  Seek competent tax advice

31. Form 990 -T  Annual Gross income from unrelated trade or business >$1,000  Seek competent tax advice

32. Loss of Exemption  Public disclosure requirements  Form 1023  Form 990 -EZ, 990, 990 -T  Can charge for copies  $1 for 1 st page .15 for each additional page

33. Loss of Exemption  Political activity  Excess benefit  Private inurement  Intermediate sanctions

34. Loss of Exemption  Prevention:  Adequate books and records  Policies and procedures  Continuing accountant or lawyer

35. Accounting  Adequate books and records  Board meeting minutes  Check register  Reconciled bank statements  Income records

36. Chart of Accounts 1 Assets – what you own 2 Liabilities – what you owe 3 Fund Balance – what’s left 4 Income 5 Expenses

37. Policies and Procedures  Internal controls  Board meetings & minutes  Reporting requirements  Separation of duties  Training of new officers  Continuing accountant or lawyer

38. Software  When do I need it?  Reporting  990  Recommendations  QuickBooks