Booster Club/Parent Organization Guidelines

1. Booster Club/ParentOrganization Guidelines JULY 2019

2. Parent Organizations • Board Policy GE(LOCAL) Relations with Parent Organizations • PTO’s, PTA’s, Booster Clubs • Responsibility of each organization to seek professional legal and tax advice • District is not liable JULY 2019

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 JULY 2019

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 JULY 2019

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 $600 or $275 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 JULY 2019

6. District Requirements • Each 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 JULY 2019

7. Annual Financial Report and Review Committee’s Report • Annual 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 JULY 2019

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) JULY 2019

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 JULY 2019

10. Raffles • Only qualified nonprofit organizations may conduct raffles • Must be 501(c)(3) organization (exempt from federal income tax) that has existed for 3 years • 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 JULY 2019

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. JULY 2019

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 JULY 2019

13. Recommended Financial Controls • Require 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 JULY 2019

14. Important Websites • Mission CISD - www.mcisd.net Home Page>About Us>District Departments>Student Activity>Files • UIL (University Interscholastic League)www.uiltexas.org/policy/booster-club-guidelines • Internal Revenue Service www.irs.gov/charities-non-profitswww.irs.gov/formspubs/ https://www.irs.gov/Charities-&-Non-Profits/Annual-Electronic-Filing-Requirement-for-Small-Exempt-Organizations-Form-990-N-e-Postcard • Texas State Comptroller https://comptroller.texas.gov/taxes/exempt/ • Texas Secretary of State - www.sos.state.tx.us JULY 2019

15. Questions? JULY 2019