Operational Guidelines

Valencia Vikings Choir Booster Club is a parent-led nonprofit organization formed primarily to help the Valencia Vikings Choir with obtaining resources for events, supplies, equipment, and various fees and expenses.

• It is not a school sponsored activity, and participation in the Booster Club or in Booster Club activities is completely voluntary. 

• It is a 501(c)(3) organization with a tax-exempt status.

• It is responsible for filing its own taxes (IRS, State, and CDFTA Sales and Use Tax) and has its own tax number or EIN.

• It has its own private money with its own bank account.

• It requires a California Seller's Permit in order to sell goods and merchandise as part of fundraising.

• It is legally separate from the William S. Hart Union High School District and is not under the control of or the responsibility of, the site administrator, superintendent or governing board.

• It is authorized to operate in the District for a period of one fiscal year, beginning on July 1st and ending on June 30th, and needs to submit an application annually to the District. See Resources.

• It must carry its own liability insurance in an amount equal to or exceeding the minimum determined by the District and must add WSHUSD as an additional insured.

• See Bylaws for more details about membership.

These tasks must be completed annually by the Booster Board:

Application for District Approval

• The Booster President and Secretary must prepare and submit the following to the William S. Hart Union High School District (WSHUHSD)  (see Resources) at the beginning of the school year.

  • • Booster application forms and required documentations

    • Each officer must submit a signed Acknowledgement Form 

    • The President must sign a Hold Harmless Agreement

Planned Fundraising Events

• The Booster President and Secretary must prepare and submit to the principal and BSO a preliminary list of fundraising events planned for the year for review. Submit this at the beginning of the school year.

Insurance Renewal

• The Booster Treasurer must renew the insurance by October 31. The document must identify the WSHUHSD as an additional insured. 

Taxes

• The Booster Treasurer must file all the necessary tax returns.

• File tax return with IRS (Form 990 - N). This is due by the 15th day of the 5th month after the Organization’s accounting period ends or 4.5 months after official year-end (December 15).

• File tax return with State (Form 199) by December 15.

• File CDFTA Sales and Use Tax return by January 31.

• Issue 1099 forms to applicable individuals or business by January 31 of each year. 

• If 1099 forms were issued, send information to the IRS by February 28 of each year.

Annual Registration Renewal 

• The Booster President and/or Treasurer must complete the following.

• All 501(c)(3)’s in California are required to register with the California Attorney General’s office and annually file a form RRF-1 by December 15 (4.5 months after fiscal year ends).

Financial Statements

• The Booster President and Treasurer must submit a copy of annual financial statements to the WSHUHSD Business Services Office (BSO) at the end of the fiscal year - July 31 (and mid-year financial statements upon request).

Internal Audit

• The Booster President must put together a special Audit Committee or obtain a CPA or outside party to conduct the audit.

• The Audit is conducted at the end of the fiscal year (July 31) by an outside party such as a CPA or an internal audit committee comprised of 2 Booster Board members who are not the President and Treasurer. 

• The completed audit will remain with Booster documents and should be made available upon request

Board Election

• The Booster President must put together a Nominating Committee composed of the current President and at least one additional officer shall begin seeking nominees in March of the year in which the candidates will be elected and develop a slate of candidates. 

• The candidates shall be announced to the membership as soon as possible. 

• Additional nominees may be solicited from the floor on the day of the election. Only those who have consented to serve shall be eligible for nomination, either by the committee or from the floor. 

• Officers shall be elected at the May meeting of the organization by the members present. 

• Officers shall assume their official duties on the last day of the current school year following their election. 

• The list of authorized signers on the bank account shall be updated.

• There shall be a transfer of knowledge, documents, mailbox key, etc. from outgoing officers to incoming officers.

Do's:

• Do donate cash, supplies, and equipment to the ASB and the school with a clearly indicated purpose of the donation. Any donated items become the property of the school.

• Do donate funds to the ASB or the school for transporting students to events. 

  • • A field trip request form will be completed by the school in conjunction with the event. 

    • The District’s Business Services Office will invoice the Booster Club for the cost of the transportation. 

    • Don't remit payment directly to the transportation department, and don't contract for transportation by an outside agency.

• Do direct any donations made to ASB to a specific club or even a specific purpose. Make sure to obtain an invoice from the District for the Booster's records. 

• Do consult with the District maintenance department prior to purchasing items that require installation or involve site or building improvements. 

• Do consult BSO prior to purchasing goods or services that require ongoing maintenance contracts.

• Do prepare a completed W-9  for independent contractors or consultants prior to payment for services. Please reference IRS 1099 reporting requirements for consultants. 

Don'ts:

• Don't represent  Booster Clubs' activities as those of the William S. Hart Union High School District.

• Don't incorporate the school’s logo in the Booster logo.

• Don't incorporate the school's name in the Booster name without the word "Booster" attached to it.

• Don't use the school’s or District's address or contact information on any communication or for purchases or deliveries.

• Don't make purchases with any WSHUHSD employee’s name.

• Don't use the District’s special discounted rates with contractors/agencies, and don't make purchases under the District’s contract.

• Don't use the school's facilities without the school's approval. This includes meeting times, places, dates, and fundraisers. On-campus activities cannot conflict with school schedules/activities or district policies. The booster's ability to use school facilities at K-12 districts is regulated by California Education Code 38130-38139, known as the Civic Center Act. Fundraising activities at any school site are under the control of District or school authorities.

• Don't commingle the Booster funds with ASB funds. 

  • • The Booster can donate funds to ASB, after which ASB manages the donated funds. 

    • The Booster cannot use ASB funds to purchase items. This includes purchases for fundraisers. Items necessary for a fundraiser may not be purchased through the ASB, even if the Booster Club provides the funding for the purchase. This would be considered commingling of funds and is strictly prohibited.

• Don't direct any donation or fund to a specific student.

• Don't personally benefit from the booster's activities. 

• Don't require students to participate in fundraiser activities.

• Don't allow the use or purchase of alcohol or tobacco.

• Don't give anything (including awards) to students without prior approval from the school’s coach/advisor. 

• Don't do anything that would jeopardize the Booster's tax-exempt status including political campaign donations and inurements or private benefit. (Get more info on StayExempt)

Accounting (also listed in Financial Procedures below)

The Booster Club provides support to the Choir by fundraising. Funds are deposited into the Booster Club's bank account after which the following occurs:

1. The Booster Club writes a check to the school/ASB. The school/ASB deposits the funds into the ASB's Choir fund. The funds then belong to the ASB, to be spent at their discretion (under the supervision of the Sponsor).  Typically, ASB uses these funds to help pay for transportation, festival/competition fees, and other Choir expenses. All accounting and safeguarding of the funds is the responsibility of the school, once the school has received the funds.
   
   

2. In situations where ASB is not able to provide payment in a timely manner, the Booster Club has the ability to step in and write a check from its bank account to necessary parties for expenses related to the Choir. In addition, the Booster may collect amounts due from the students for each event/competition/trip in which the student group participates. The Booster tracks who has paid and who still owes money for each event and ensures that all balances are paid in full before the event occurs. Lastly, the Booster keeps track of all costs related to the operation of the Booster. All accounting and safeguarding of Booster funds is the responsibility of the Booster Club.

General

• At the beginning of each school year, the Booster Board must submit to the principal and BSO a list of tentative Booster Club fundraising events to hold that year. No Booster Club fundraising activities can begin until the booster club obtains approval from the BSO.

• Any amendments to the scheduled fundraising events should be submitted three weeks prior to the event.

• A Use of Facilities request must be pre-approved prior to the submission of a fundraising request. Attach a copy of the approved facilities request form to the fundraising request.

• Students should not be involved in Booster Club fundraising activities except as volunteers after school hours and/or off campus for the Booster Club. They should clearly identify that they are raising funds for the Booster Club and not the school and that they are legally able to participate in the fundraiser (bingo, raffle, casino night, etc.).

• Students and teachers cannot be forced to fundraise or be required to raise any particular minimum number of tickets or minimum of money. 

• Students cannot be pressured to compete to sell or have special recognition for having the most sales. 

• All students should have the same opportunity to benefit equally from the revenues. If a student chooses not to participate in the fundraiser, that person still receives an equal benefit from the revenues generated.

• All Booster funds are collected and maintained by the Booster only, never by the ASB or District.

• The use of individual student accounts or tracking of student accounts is not allowed. The Booster Club cannot use individual accounts to credit an individual for funds raised.

• Fundraisers cannot be held during the school day. The school day is considered to be one hour before the start of school and one hour after the end of the school day

Food Sales

• The Booster Club must comply with Federal and State law as well as district policies and regulations on the sale of food on school premises. Booster Clubs are encouraged to review and become knowledgeable of applicable laws including county food handling requirements, Federal and State nutritional standards, as well as the District’s Wellness Policy. 

• Booster Clubs are one of the organizations that the district can authorize to operate the concession stands at sporting events in order to raise funds for the organization; however, the ASB is given first priority. 

• Keep in mind that any sale made in the state of California is subject to the Sales and Use Tax and requires a seller's permit. 

• Be aware that snack bars are subject to inspection by the County Health Department at any time.

Bingos

Certain tax-exempt organizations are authorized by state law and local ordinance to raise money from bingo, provided that: 

• the proceeds are used only for charitable purposes

• the games are conducted by volunteer members of the organizations

• no salaries are paid with bingo proceeds

• there is no commingling of bingo money with any other funds

• the organization conducting bingo holds a valid license issued by the city or county in which bingo is played. 

• minors (under the age of 18) are not allowed to participate in any bingo game. 

• only the members of the authorized organization can conduct, operate, or participate in the promotion, supervision, or any other phase of the bingo game.

Raffles

Raffles conducted by nonprofit organizations for charitable purposes are lawful under California law which took effect in 2001 (Penal Code 320.5). 

• At least ninety percent (90%) of gross receipts of the raffle must be distributed to provide support for a beneficial or charitable purpose or program. The traditional 50/50 type raffle is illegal. 

• The booster club must register with the Attorney General’s Registry of Charitable Trusts prior to conducting a raffle and must annually report the results of any raffles conducted. 

• Registration and reporting forms may be obtained from the Registry of Charitable Trusts by mail or from the Charitable Trusts website. 

• Detachable tickets must have identifying numbers

• Only adults (over the age of 18) may supervise the drawing

• The raffle may not be conducted over the Internet. Information on how to conduct a legal raffle can be obtained by going to the California Attorney General’s Website at http://oag.ca.gov. 

• Before the group can conduct the raffle, it must register with the Department of Justice and complete the annual raffle registration form at http://oag.ca.gov/sites/all/files/agweb/pdfs/charities/raffle/ct_nrp_1.pdf by September 1 of the year in which the raffle will be held.

• On an annual basis, the Booster Club is required to submit a report to the Department of Justice that includes the gross receipts and expenses incurred from the operation of the raffle, as well as the charitable or beneficial purposes for which the proceeds were used.

Auction/Silent Auction

An auction is a group of items that have been donated or purchased that are then “sold” in a silent auction to generate donations for a specified group or activity. An auction held on a Saturday, conducted by a Booster Club with the sole purpose of raising donations for the school, would be acceptable as a fundraiser. Both parents and students would be able to bid on the items, since it would not occur during school hours, and is not considered gambling. However, when a school is working with an organization, the community perceives that the funds raised will be used towards supporting school functions. Care must be taken by all involved that the donations received are used in the manner represented by the organization conducting the fundraiser.

Received

Booster Clubs may receive monetary or non-monetary contributions from individuals or businesses. These are tax-deductible because of the Booster Club's 501(c)(3)  status.  In order to allow the individuals or businesses to deduct these contributions on their tax returns, the Booster Club must send them a copy of the Booster Club’s Determination Letter indicating that the Booster Club is a 501(c)(3) organization. 

For contributions received, the Booster Club may want to send a thank you note along with a copy of the Determination Letter. The thank you note may indicate what was contributed or donated. If the gift is monetary, the dollar amount may be indicated. If the gift is not monetary, the estimated value should not be included in the thank you note. It is the responsibility of the individual or business that provided the gift to determine the value that they would report on

their tax return.

Note: Even though contributions or donations received will ultimately support the student group at a school, the gift is still considered to be a gift to the Booster Club and not to the school or to the District.

Checks to the Booster Club can be made out to : Valencia Vikings Choir Booster Club

Quid Pro Quo Contributions Received

According to the IRS, a 501(c)(3) organization must provide a written disclosure statement to donors who make a payment, described as a “quid pro quo contribution,” in excess of $75. A quid pro quo contribution is a payment made partly as a contribution and partly for goods or services provided to the donor by the charitable organization. An example of a quid pro quo contribution is where the donor gives a Booster Club $100 in consideration for a concert ticket valued at $40. In this example, $60 would be deductible. Because the donor’s payment (quid pro quo contribution) exceeds $75, the disclosure statement must be furnished, even though the deductible amount does not exceed $75. Separate payments of $75 or less made at different times of the year for separate fundraising events should not be aggregated for the purposes of the $75 threshold.

The required written disclosure statement must:

1. inform the donor that the amount of the contribution that is deductible for federal income tax purposes is limited to the excess of any money (and the value of any property other than money) contributed by the donor over the value of goods or services provided by the charitable organization, and

2. provide the donor with a good-faith estimate of the value of the goods or services that the donor received.

The Booster Club must furnish the statement in connection with either the solicitation or the receipt of the quid pro quo contribution. If the disclosure statement is furnished in connection with a particular solicitation, it is not necessary for the organization to provide another statement when the associated contribution is actually received. A penalty is

imposed on charitable organizations that do not meet the disclosure requirements. For failure to make the required disclosure in connection with a quid pro quo contribution of more than $75, there is a penalty of $10 per contribution, not to exceed $5,000 per fund-raising event or mailing.

Donation Matching

Many of our Choir parents work at companies that  have a corporate matching program. This is a program in which the company matches donations made by employees to eligible nonprofit organizations. Some companies will match an employee’s donation to a charity one-to-one, but others match donations two-to-one and some even match three-to-one. Find out if your company has a donation matching program and learn the rules and details. Easily make your donation be worth two to four times as much as you donate. 

Given

When the Booster Club contributes directly to the student group, the Club should receive a Tax-exempt Status/Donation Acknowledgment Form from either the school or the District. A District employee should complete the form when the donation is made, which can be obtained from the school site office.  

Example: The Booster Club is funding a portion of a student group’s trip for a competition. The trip costs $50,000, and the Booster Club has agreed to pay $35,000 of the expense. Therefore, the students must pay the remaining $15,000. The $35,000 that the Booster Club donated is considered a contribution to that particular District student group and should be documented on the Tax-exempt Status/Donation Acknowledgment Form.

The Tax-exempt Status/Donation Acknowledgment Form should be kept with the Booster Club’s financial records. The form can be used as substantiation to the IRS that the Booster Club is using the funds raised in the manner approved by the IRS as a 501(c)(3) organization.

The fiscal year of the organization is from August 1 to July 31 but may be changed by resolution of the Executive Board. 

Accounting (also listed in Fundraising Procedures above)

The Booster Club provides support to the Choir by fundraising. Funds are deposited into the Booster Club's bank account after which the following occurs:

1. The Booster Club writes a check to the school/ASB. The school/ASB deposits the funds into the ASB's Choir fund. The funds then belong to the ASB, to be spent at their discretion (under the supervision of the Sponsor).  Typically, ASB uses these funds to help pay for transportation, festival/competition fees, and other Choir expenses. All accounting and safeguarding of the funds is the responsibility of the school, once the school has received the funds.
   
   

2. In situations where ASB is not able to provide payment in a timely manner, the Booster Club has the ability to step in and write a check from its bank account to necessary parties for expenses related to the Choir. In addition, the Booster may collect amounts due from the students for each event/competition/trip in which the student group participates. The Booster tracks who has paid and who still owes money for each event and ensures that all balances are paid in full before the event occurs. Lastly, the Booster keeps track of all costs related to the operation of the Booster. All accounting and safeguarding of Booster funds is the responsibility of the Booster Club.

Budget

• A budget should be developed at the beginning of the year to project expected revenues and expenses and should be revised as needed. Budgets are usually prepared for a one-year period and include the annual goals and a plan for achieving those goal by deciding the following: 

  • • Estimated revenues - What fundraisers will be held? 

    • Estimated expenses - What will be the cost to conduct the fundraisers? 

    • Estimated ending reserves and carryover - Is there enough left over to accomplish the goals that have been outlined?

•  Monthly budget monitoring is necessary. 

• The Executive Board shall present to the membership at the first regular meeting of the membership after the officers have been elected, or as soon thereafter as practicable, a budget of anticipated revenue and expenses for the year. This budget shall be used to guide the activities of the organization during the year, including serving as approval for anticipated expenditures. Any substantial deviation from the budget must be approved in advance by the membership. 

• The Executive Board may authorize any officer or officers to enter into contracts or agreements for the purchase of materials or services on behalf of the organization. 

• No loans shall be made by the organization to its officers or members. 

• All checks, drafts, or other orders for the payment of money on behalf of the organization shall be signed by the Treasurer or by any other person as authorized in writing by the Executive Board, except that checks of $250 or more must have the signature of at least two officers, such as the Treasurer and the President. Checks shall bear notice of this requirement above the signature line as follows, "Two signatures required for checks in the amount of $250 or more." 

Reporting

• A financial statement with a comparison of budgeted versus actual expenditures and receipts should be provided to members. Cash receipts and disbursement reports should be available for review when needed and at the annual audit.

• Submit annual  financial reports (July 1-June 30) to the BSO and school site at the end of the fiscal year, and mid-year financial statements upon request.

• The Treasurer shall present a financial report at each membership meeting of the organization and prepare a final report at the close of the year in accordance with the organization’s financial policies.

Cash Receipts

• All cash collections received by the booster club for fees, dues, fundraising, etc. must be deposited in total and in a timely manner with record documenting the source and amount of funds. 

Disbursement of Funds

• Prior to a disbursement, the request to expend funds should be compared with the budgeted expenditures. Disbursements outside the scope of the budget or line items that exceed the approved budget should require a vote by the general membership. 

• Direct payments to District employees are not permitted uses of booster funds, nor is the purchase of alcoholic beverages or tobacco products. 

• Approval should be obtained for all expenditures regardless of the amount.

• At no time should a check be issued without the appropriate supporting documentation.

• Sales slips, receipts or invoices should be provided for every expenditure.

• A check request form is required to receive reimbursement.

• Disposition of any fund balance should the booster club disband or be denied authorization to operate in the WSHUSD would go to the VHS Choir ASB account. 

Petty Cash

• Each booster club may maintain a small petty cash account. Strict controls must be maintained by keeping petty cash in a locked box accessible by only the treasurer and one other officer who is not a District employee. Petty cash funds should be used for emergency purchases only. All other purchases should be made with a booster club check.

Deposits

• It is recommended that deposits be made daily, if the total receipts on hand exceed $250.00. 

• The Treasurer shall ensure that all funds of the organization are timely deposited to the credit of the organization in such banks or other depositories as determined by the Executive Board. All deposits and disbursements shall be documented by a receipt, an invoice, or other written documentation. Sequentially numbered receipts shall be provided, with a copy kept, whenever cash is turned over or collected. All deposits and/or disbursements shall be made as soon as practicable upon receipt of the funds, normally daily, immediately after received and counted. If debit or credit cards are established in the name of the organization, a policy approved by the Executive Board shall be developed and used that includes a list of the authorized users, daily/monthly/annual spending limits, and review and oversight provisions. No personal charging on the card by the authorized users shall be allowed. 

Bank Reconciliation

• Upon receipt of the monthly bank statement, the balance indicated on the statement shall be reconciled to the bank account balance in the general ledger as of the last day of the month. The reconciliation should be completed within thirty (30) days of the date of the bank statement. 

Internal Controls 

Booster clubs are responsible for ensuring that proper internal controls exist for all of their financial activities. Internal controls are the foundation of sound financial management. They ensure that operations are effective and efficient, that financial information is accurate and reliable, that inventory of goods is accurate, and that the booster and its members are protected against improprieties, fraud, and abuse. 

Internal controls include segregating duties according to members’ functions so that one person is not handling a transaction from beginning to end. This is a critical part of a system of checks and balances. 

The organization shall maintain separation of financial controls so that, minimally: 

• All expenses must be approved by the membership by way of approval of an annual budget, or amendments thereto, or be approved by separate resolution of the Executive Board; 

• Checks exceeding $250 must be endorsed by at least two officers authorized by resolution of the Executive Board, and checks of the Organization shall include above the signature line a notice to this requirement; 

• An officer or other person without check signing authority designated by the Executive Board shall review and reconcile all bank statements on a monthly basis; and, 

• A committee of at least two (2) persons without check signing authority shall annually audit all corporate finances, or hire and supervise an outside accountant or auditing firm to conduct a review of corporate financial records. 

1099 

• Internal Revenue Service guidelines require that all payments for services in excess of $600.00 made to a vendor or an individual by a booster club be reported on a form 1099 on an annual basis. The booster club should secure an IRS form W-9 from the provider at the time of service to ensure the organization has an accurate record of the taxpayer identification number. The organization must then issue a form 1099 to all qualifying vendors for services performed in a calendar year by January 31 of the subsequent calendar year.

Audit 

• An audit should be conducted at the end of the fiscal year, when there is a change in treasurer, and when there is a change in any officer who signs booster club checks. An audit may be conducted by an outside party, such as a CPA or an audit committee. The audit committee should be comprised of at least two members of the booster club (not the president or treasurer).  The completed audit will remain with booster documents and should be made available upon request. See District's Booster Club Manual for more details.

Because booster clubs often suffer from the constant turnover of officers and members, it is important that the activities of the booster club be clearly documented and that a procedure for retaining those documents be established. 

Minutes of meetings as defined by the organization bylaws should be retained for a minimum of 4 years.

Financial records shall be maintained and destroyed in accordance with law, and standard record retention guidelines, as follows: 

• Year-end Treasurer’s financial report/statement, annual Internal Financial Review Reports, IRS Form 990s - Store in corporate record book, binder, and/or cloud-based software for  at least seven (7) years. Consider keeping permanently. 

• Bank statements, canceled checks, check registers, invoices, receipts, cash tally sheets, investment statements, and related documents - Compile and file records on a yearly basis. Store in binder or cloud-based software for seven (7) years. Store w/financial records. Destroy after seven years. 

• Treasurer’s reports (monthly) Compile and file records on yearly basis.  -  Store in binder or cloud-based software for three (3) years. Store w/ financial records.  Destroy after three years.