APRIL 2017 PRESENTED BY BURBANK SCHOOLS BOOSTERS ASSOCIATION GUIDELINES FOR BOOSTER CLUBS OPERATING IN BURBANK UNIFIED SCHOOL DISTRICT
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1 APRIL 2017 PRESENTED BY BURBANK SCHOOLS BOOSTERS ASSOCIATION GUIDELINES FOR BOOSTER CLUBS OPERATING IN BURBANK UNIFIED SCHOOL DISTRICT
2 AGENDA FOR TODAY Introductions Booster Purpose and Structure So You ve Been Elected to the Booster Board Now What?? Finance Fundraising BUSD Compliance Packets BSBA Financial Reporting for Affiliates Q & A
3 BOOSTERS IN BURBANK LOOK WHAT YOU VE DONE! There are 39 booster clubs in Burbank supporting Burbank Unified School District Cumulatively your groups raised almost $4 MILLION dollars last school year! 85% of those funds go directly back to the schools you support! Boosters raise funds for arts programs, athletic programs, instructional programs, interventions, field trips, and more! Most donations and funds raised come from parents, family members, and the Burbank community
4 WHO IS BSBA? Burbank Schools Boosters Association (BSBA) is a registered 501(c)(3) non-profit organization run by parent volunteers, all of whom are current or former booster officers 32 Burbank boosters (affiliates) use BSBA s tax-exempt status to operate and raise funds legally BSBA retains an attorney and completes yearly aggregate tax returns for BSBA-affiliated boosters BSBA board members provide BUSD-approved training to fulfill school board policy requirements for all Burbank boosters Our mission is to support Burbank s dedicated booster volunteers so they can do what they want to do, which is to raise money for all of the worthwhile programs for our kids and schools! Visit us at
5 BOOSTER PURPOSE AND STRUCTURE
6 MISSION AND PURPOSE OF BOOSTERS Booster clubs are nonprofit, tax exempt public charities designed solely to RAISE FUNDS for existing BUSD programs and activities Boosters are PARENT-run; ASBs are STUDENT-run Booster clubs are bound by their own mission statements and may not operate for any other purpose; boosters are not ATMs for the schools or programs they support
7 WHO S THE BOSS OF YOU? Booster clubs are bound by: IRS Code for 501(c)(3) Tax Exempt Organizations State of California Attorney General and Franchise Tax Board rules and regulations for non-profit corporations California Corporate Code California Ed Code Burbank Unified School District Board Policies Booster organizations are not legally part of the Burbank Unified School District, but booster can only operate with the approval of the school board If you are one of the 32 BSBA affiliate boosters utilizing BSBA s tax exempt status, you are also bound by BSBA policies
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9 WHY DOES THE SCHOOL BOARD REQUIRE AN ANNUAL FILING OF COMPLIANCE PAPERWORK? California Ed Code Section requires that all organizations that conduct fundraising to benefit school activities or programs have prior approval from the Board of Education The annual BUSD compliance paperwork is the application for Board approval
10 WHAT IS BOARD POLICY? BP 1230 AND AR 1230 Board Policy 1230: Defines the purpose and scope of booster organizations Administrative Regulation 1230: Defines the relationship between the boosters and the district, and provides guidelines and requirements for boosters to operate Booster clubs are required to read and understand AR 1230 and BP 1230 School Connected Organizations to be approved by the Board of Education
11 RELATIONSHIP OF BOOSTERS TO DISTRICT The school board has the right to audit a booster at any time, with or without cause When deemed necessary by the Board or the Superintendent or designee, the authorization for a booster club to conduct activities in the district may be revoked at any time Booster leaders should work closely with site administrators to make sure the booster club is operating within accepted district guidelines
12 RELATIONSHIP OF BOOSTERS TO DISTRICT Booster clubs need to make sure they are effectively communicating with all relevant partners within the district, including other booster clubs, PTAs, school site administrators, faculty liaisons, program directors, and coaches Boosters cannot commingle funds with ASBs, PTAs, or other booster clubs Boosters cannot host or run events or fundraisers with other organizations
13 INTERACTION WITH DISTRICT PERSONNEL AND STUDENTS The booster club must not be involved in the direction of a coach or advisor, personnel issues, scheduling of contests, rules of participation, or policy making activities for a student group or extracurricular program Booster clubs and its volunteers provide support for programs and schools; do not manage or take over tasks that belong to district employees (liability and union issues) Parent volunteers are expected to follow the same standards of conduct as district employees when chaperoning, sponsoring, or attending student activities
14 INTERACTION WITH DISTRICT PERSONNEL AND STUDENTS Booster club volunteers must remember that access to school campuses and district facilities is a privilege It is important for volunteers to conduct themselves in a professional and respectful manner at all times Volunteers must have: Awareness of and willingness to follow any school district or state-mandated criteria regarding health and background checks Strict confidentiality regarding students and school personnel Awareness of the ethical and legal responsibilities involving the privacy of students records
15 SO YOU RE ELECTED TO THE BOOSTER BOARD NOW WHAT??
16 TO-DO LIST FOR NEW BOOSTER BOARDS Meet with or speak to your predecessor to review the duties of your job Take any files, binders, and digitized information associated with your new position Meet with new booster board and outgoing board, the program director, coach, or advisor, and the school site administrator (principal or assistant principal) to discuss the next year s goals, plans, and financial needs of the program or school Plan out projected income and expenses and create booster budget Based on the budget, plan booster fundraisers in consideration of the capacity of your donors and volunteers Include other fundraising groups (PTAs, other boosters, ASB) in the discussion in order to avoid confusion or overlap of events and fundraisers
17 TO-DO LIST FOR NEW BOOSTER BOARDS Create a calendar of fundraisers, events, and meetings for the next school year Complete BUSD compliance paperwork Confirm that your general liability insurance has not expired; renew, if needed Change check signers on bank account to new officers Create booster club literature for next year s parents All publications and communications that booster clubs send to parents and/or the community should be provided to the school site designee for review before distribution
18 BOOSTER BOARD GENERAL DUTIES Ensure that there are adequate controls and effective best practices in place that protect the booster club and the district Review bylaws and officer roles and responsibilities Become familiar with booster insurance coverage Run efficient meetings by creating an agenda Take minutes at all meetings Vote at meetings to approve budgets, calendars, fundraisers, disbursements; votes must be recorded in meeting minutes Report to members at least monthly: Treasurer s report / profit & loss, detailed budget-toactual, and list of checks written
19 We are the stewards of money we did not earn
20 TRANSPARENCY AND TRUST Every booster club board member has a fiduciary (ethical and legal) duty to: Follow best practices to protect the club, its officers and the school district and to avoid theft, fraud, tax implications and other legal issues. Ensure compliance with all laws. These include federal and state laws as well as the policies and procedures of the booster club. Ensure the assets are used to meet the needs of the students and programs served by the booster club and for no other purpose. Operate with transparency all the members are given the opportunity to participate in decision making and to view financial reports. Keep board rosters up to date with BUSD and BSBA. Complete internal financial reviews twice per year, at a minimum.
21 FINANCE
22 CREATING A BUDGET In the spring, create a detailed budget of anticipated booster club INCOME and EXPENSES for the booster club for the next school year and include these suggested line items: INCOME Contributions and donations (cash, gifts, grants, and proceeds from passive fundraisers) Fundraising income Sales fundraisers Event fundraisers Raffles Program income Bank interest EXPENSES Fundraising Cost of product (chocolate, catalog items, concessions, etc.), cost of fundraising events (carnivals, etc.), and promotion Program Cost of supporting the BUSD program Administrative Cost of doing business (insurance, tax filings, assessments, copy services, permits)
23 REVISING AND MONITORING THE BUDGET Review Budget-to-Actual numbers regularly The budget is a working document; revise as necessary. Board approves, then presents changes to association for its approval Inform committee chairmen of their budgeted amounts Ensure expenses stay within budget Remember that budgets are only estimates they are a guideline to follow. If there are any significant differences, over or under, these should be explained and documented in the minutes.
24 BOOSTER DISBURSEMENTS Never pay with cash; always use a check with supporting documentation Per BUSD Board Policy: Two signatures are required on all checks NEVER pre-sign checks NEVER write checks to CASH Use checks in proper sequence Track inventory of all goods you are selling BUSD employees may not serve in a fiscal role on a booster club board or as a check signer for a booster club account BSBA boosters may not keep bank cards to be used for purchases or withdrawals as it violates the two-signature rule for disbursements
25 GIFTS AND DONATIONS TO BUSD All gifts or donations from boosters to BUSD must be preapproved by the site administrator Gifts to schools or the district may be cash, equipment, or supplies Funds should be remitted to district business office accompanied by a BUSD Gift Report The purpose of the donation/gift should be clearly described Gifts and donations become the property of BUSD
26 PAYING COACHES/TEACHERS All decisions to hire personnel are made by the site administrator or designee, NOT boosters Boosters may not directly hire and pay staff, consultants, walk-on coaches, specialized instructors, or clinicians Boosters may help pay for such personnel by fundraising and gifting the monies to BUSD; in turn, BUSD pays the individual for their time through payroll or accounts payable All personnel must be vetted by the district, submit a Live Scan, and complete all forms and paperwork required by BUSD Refer to BUSD Hiring Flow Chart for further information: BurbankSchoolsBoosters.org Affiliate Resources BUSD Forms
27 BOOSTER INCOME Minimum of two individuals not related or residing in the same household should count money together Keep money in a secure location and put in bank within five (5) days Pre-printed sequentially numbered receipt books should be used to issue receipts for cash donations Discourage large amounts of cash in anyone s possession Bank reconciliations are prepared monthly and discussed at meetings Financial reports presented to members at regular monthly meetings All donors giving $250 or more must receive a letter acknowledging the donation
28 CONTRACTS Boosters may not enter into contracts on behalf of the school or school district, or otherwise act as an agent of the school or school district Contracts must be reviewed and approved before signed, then signed by the president and one other elected officer Sign: ABC Booster Club, by president Jane Doe; do NOT sign just your name
29 MORE FINANCIAL BEST PRACTICES Review and reconcile bank statements at least monthly; not doing so can jeopardize bonding insurance coverage Booster clubs may not funnel funds from other sources through their accounts Booster club funds may not be used to purchase: Personal gifts for officers, volunteers, students, or district employees (i.e. gifts for weddings, birthdays, flowers, or gift cards). Articles for the personal use of district employees Loans or credit for district employees or others Contributions to fundraising drives for charitable organizations
30 FUNDRAISING
31 FUNDRAISING GUIDELINES All fundraisers must be preauthorized by the site administrator or designee A Use of Facilities request must be submitted for all fundraisers held on school grounds Students shall not be involved in fundraising activities except as volunteers after school hours and/or off campus for the booster organization No student is required to raise a minimum amount of money or sell a minimum number of tickets, community cards, merchandise, etc. Fundraising competitions or special recognition of sales by students is discouraged
32 MORE FUNDRAISING GUIDELINES Fundraising should be: For a specific project, as identified in the current approved booster budget For the benefit of the student program as a whole that the booster club supports The use of individual student accounts or tracking of student accounts is not allowed Cooperative Fundraising: Booster clubs must take care to avoid adopting the work and pay or don t play method of funding their activities. Private Inurement: Booster clubs must fundraise so that it benefits the entire group of athletes or students and does not benefit certain individuals over others.
33 INSURANCE Make sure there is proper insurance coverage and that you name BUSD as an additional insured Covers booster club events ONLY The event must be voted on by the booster club The event must be approved by the booster club The event must be scheduled by the booster club The event must be planned by the booster club The majority of the manpower must be provided by booster club members ALL booster activities must be approved by BUSD General Liability -- $1,000,000 per occurrence / $2,000,000 aggregate Director s & Officers protects the elected officers of the club Bonding protects in case of theft, fraud, or embezzlement
34 INSURANCE NOT COVERED Athletic activities: Organized sports including (but not limited to) sport clubs, sports camps, municipality teams, school teams (public or private), sports leagues, college teams or professional teams Concessionaires or commercial vendors (must provide their own insurance) Childcare services Mechanical / Motorized Rides at Carnival Vehicular Transportation of Any Type / Automobile Liability Weapons, including but not limited to guns, knives, swords, bows, axes and sling shots/catapults Workers Compensation Claims Consult site administration when planning new activities; some activities covered by booster insurance are NOT ALLOWED per BUSD policy
35 RAFFLES Raffles Tickets are sold or money is otherwise exchanged for the chance to win a prize; REQUIRE PERMIT from the State of CA Opportunity Drawing Tickets are offered, free of charge, to everyone, for the "opportunity" to win a prize; no permit needed 90/10 Rule (90% Income/10% Costs) At least 90% of the gross receipts of the raffle must be distributed to provide support for a beneficial or charitable purpose. Use only donated items - DO NOT purchase items to be raffled off. This could cause the group to go over the 10% rule of costs and create penalties for the charitable status. 50/50 Raffles are ILLEGAL in the state of California - DO NOT DO THEM Raffle financial requirements - a separate raffle financial report, due October 1st, must be completed for each raffle conducted during a reporting year (Sept. 1 - Aug. 31); track raffle income and expenses SEPERATELY from your other fundraisers (See RAFFLE FAQs - APPENDIX I - in Booster Financial Manual for more information)
36 CASINO NIGHTS / POKER NIGHTS Each non-profit organization may hold only one gambling fundraiser per calendar year. For BSBA affiliates, that means only ONE poker night event can be held by ONE booster club. If your booster club wishes to have this sort of event, contact BSBA for more information. Permit is required; registration fee is $100 and it is non-refundable No one under age 21 is allowed to participate at these fundraising events Approved games can be found listed on the registration form Slot machines and other games, including roulette, craps, twenty-one, or any banking or percentage game played for anything of value, are prohibited and cannot lawfully be played for charitable fundraising purposes.
37 STUDENT FEES Booster clubs cannot legally collect mandatory fees to support school-sponsored educational programs, including extracurricular activities Students cannot be required to raise a specified amount of money in order to participate in an activity sponsored by a school-connected organization No student can be excluded from participating in the program activities based on ability to pay Boosters cannot bill, invoice, send statements or otherwise imply that families are being charged fees or that donations are being tracked by student Boosters CAN track donations for purposes of sending an acknowledgement, thank you, and tax receipt to the donor
38 FUNDRAISING MESSAGING Boosters CAN request donations or contributions for costs of the program they support Good messaging gains donations! Be specific about the needs of the program and explain the costs required to meet those needs Ask for donations to help cover the costs of the whole program Without donations, the program cannot exist Acceptable language for soliciting donations Voluntary donation Contribution Encouraged to consider making a donation Contributions will cover the cost of We appreciate your participation in donating to this program
39 BOOSTER CLUB DOS Fundraise to match grants Fundraise to pay for coach s stipends or other support staff Provide volunteer support to teachers, coaches, site admin, etc. Fundraise to support a school program or activity Fundraise to purchase materials and supplies Fundraise to pay for transportation Fundraise to contribute to paying for BUSD purchases of equipment or structures Ask for donations from families or community members Hold fundraising events with proper permits and protocol Hold raffles with proper permits and protocol Assist school site staff as volunteers Raise money to provide gap funding for existing BUSD programs and activities
40 BOOSTER CLUB DON TS Guide, direct, or establish guidelines for a school program or activity Pay for materials or supplies that the school district is required to provide Directly order buses or other transportation Purchase and maintain equipment or structures used by the students/staff Apply for grants without BUSD approval Directly hire and pay staff Manage district personnel Displace school staff with volunteers or outsourced personnel Provide or manage curriculum for the classroom Represent themselves as agents of the school or the district
41 BUSD COMPLIANCE PACKETS Two step process Why? What s due on May 10, 2017? What s due by September 8, 2017? Electronically Submit to BUSD and BSBA (if a BSBA Affiliate)
42 BSBA AFFILIATE FINANCIAL REPORTING Financial Spreadsheet Record all income and expenses separately
43 Questions? Comments?
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