CHANDLER UNIFIED SCHOOL DISTRICT NO. 80

Transcription

1 CHANDLER UNIFIED SCHOOL DISTRICT NO. 80 TAX CREDIT & EXTRACURRICULAR ACTIVITY FEES 0

2 TABLE OF CONTENTS Introduction/Tax Credits-Extracurricular Activity Fee Schedule...2 Determination of Fee/Payment Procedures Elementary and Junior High Schools..3 Determination of Fee/Payment Procedures High Schools....5 Revenues Taxpayer Guidelines... 7 Internal Procedures... 8 Expenditures Internal Procedures... 8 Department of Revenue Reporting Requirements... 9 Taxpayers Q/A Other Frequently Asked Questions.11 Appendix A - Chandler Unified School District Extracurricular Activity Fee Schedule...20 Appendix B - Extracurricular Activity Tax Credit Contribution Form Appendix C - Sample Tax Credit Donation Receipt...22 Appendix D - Request for Financial Assistance for Extracurricular Activities..23 Appendix E - Cash Collection Report Form Appendix F - Student Activity/Auxiliary/Tax Credit Purchase Requisition...25 Appendix G - Tax Credit Eligible Expenditures Determination Chart Appendix H - Arizona Department of Revenue Documents...27 Appendix I- Fundraising Authorization and Approval Form

3 CHANDLER UNIFIED SCHOOL DISTRICT TAX CREDITS INTRODUCTION The Arizona State tax credit, allows an Arizona taxpayer to contribute $200 per Arizona state individual tax return or $400 per joint tax return if the taxpayer contributes to extracurricular activities or character education programs in a public school. Extracurricular Activity means any optional non-credited educational or recreational activity for enrolled students, which supplements the educational program of the school whether offered before, during or after regular school hours. Contributions are to the school of choice. Types of expenditures can include field trips, after-school enrichment programs, athletics, fine arts, and other educational extracurricular activities and fees. Extracurricular activities do not include senior trips or events that are recreational, amusement or tourist activities. Educational and/or competitive trips are allowed. TAX CREDITS -EXTRACURRICULAR ACTIVITY FEE SCHEDULE In accordance with A.R.S and A.R.S (24), taxpayers may contribute to an extracurricular activity for which the school district assesses a fee. The Chandler Unified School District Governing Board believes that extracurricular activities are a very important part of the overall educational process. In order to provide these opportunities equitably to all schools and grade levels, an activity fee schedule has been established and approved by the District Governing Board. Each school specifies the fees within the board-approved range for each activity. The approved fee schedule is available on the District website and supplementary fee listings are on each individual school website. (See Appendix A.) Extracurricular activity fee requirements may be satisfied by non-tax credit payments, tax credit donations or by student activity or PTO/Booster fundraising participation. Partial or full fee waivers may be granted in cases of economic hardship. 2

4 DETERMINATION OF FEE PER ACTIVITY & PAYMENT PROCESS Elementary & Junior Highs 1. Determination - Site Principal, with help from teachers, sponsors and coaches, will determine the fees associated with individual activities, clubs, and field trips. Fees must set be in accordance with the Extracurricular Activity Fee Schedule approved annually by the Board. (See Appendix A.) 2. Site Fee schedule - Each school s fee schedule will be posted on the school s website and a copy will be available in the School Office. If the required fee isn t posted on the school website, a letter stating the fee must be drafted by the teacher or sponsor and approved by the principal. The fee would then be communicated to all students and parents by the teacher, sponsor or coach. 3. Payment This section is subject to revision because payment procedures have changed. Please consult with the site Administrative Assistant for current procedures. Extracurricular activity fee requirements may be satisfied by non-tax credit payments, tax credit donations, student activity or PTO/Booster fundraising participation or by student activity, PTO or Booster group donations. The fee payment will be credited to the respective student for the specific extracurricular activity. The preferred method of fee payment is through the parent portal in Infinite Campus (section b. below). a. Non-Tax Credit Payments Made by Cash or Check Cash or check payments which are not intended to be tax credit donations should be paid at the School Office. All payments must be recorded in the student s record in Infinite Campus. These payments will be deposited into the Auxiliary Fund. b. Tax Credit Donations A parent (or other Arizona taxpayer) may designate a tax credit donation to cover the extracurricular activity fee. The donation may be earmarked for a specific student and extracurricular activity. Tax credit donations will be deposited into the Tax Credit Fund. i. Tax Credit Donations Made by Cash or Check Must be dropped off at the School Office so students can be credited. The donation must be accompanied by an Extracurricular Activity Tax Credit Contribution Form. (Please see Appendix B or retrieve the form online at Receipts will be prepared by the District Office and mailed to the donors by January 31 of the following year. (See sample receipt in Appendix C.) ii. Tax Credit Donations Made Online Parent donations may be made online through the Infinite Campus parent portal at The donor will be able to print a receipt at the time of their online fee payment. An official receipt will also be mailed to the donor from the District Office by January 31 of the 3

5 following year. Non-parent donations may be made at The donor will be able to print a receipt at the time of donation; no separate receipt will be mailed. c. Student Activity or PTO/Booster Club Fundraising A student may participate in fundraising efforts to cover a fee. Fundraising efforts may be organized through student activity clubs or PTO s and Booster clubs. Proceeds will be deposited into the Student Activity Fund and transferred to the Auxiliary Fund to cover extracurricular activity fees. The amount for each student should be recorded in their record in Infinite Campus as a payment. For further guidance regarding fundraising, see Frequently Asked Question #8 later in this document. d. Student Activity Clubs, PTO s or Booster Group Donations Student activity clubs, PTO s or Booster groups may pay the extracurricular activity fees for students from their existing account balances. For student activity clubs, a purchase order is not needed, but the club would need to complete a substitute vendor invoice payable to the school. Club minutes documenting the approval, as well as the student list, should be attached to the substitute vendor invoice signed by a student officer and sponsor. The invoice should be submitted to accounts payable for payment as a direct pay. The check will be deposited into the Auxiliary account for the club. For PTO s or Booster groups, a check should be made payable to the school, with instructions as to which fees are being covered and for whom. The check will be deposited into the Auxiliary account for the club. The amount for each student should be recorded in their record in Infinite Campus as a payment. 4. Payment Deadlines - Extracurricular activity fees generally must be paid within 2 weeks of the start of the activity or earlier, if deemed necessary. For cut sports, fees must be paid within 2 weeks of the date the final roster is determined. Exceptions may be granted with principal s approval for fundraising which occurs beyond 2 weeks of the start of the activity. 5. List of Eligible Students The site Administrative Assistant will be able to provide an Infinite Campus report showing students who have paid a particular activity fee. The report will also show unpaid fees. 6. Waiver - In cases of economic hardship, a Request for Financial Assistance for Extracurricular Activities Form may be completed by the parent/guardian. The principal, at his/her discretion, may waive all or part of the fee for one activity or for multiple activities that take place through the year. For audit purposes, copies of approved waivers must be maintained in the principal s office. A copy also may be provided to the family. (See Appendix D.) 4

6 DETERMINATION OF FEE PER ACTIVITY & PAYMENT PROCESS High Schools 1. Determination - Site Principal, with help from teachers, sponsors and coaches, will determine the fees associated with individual activities, clubs, and field trips. Fees must set be in accordance with the Extracurricular Activity Fee Schedule approved annually by the Board. (See Appendix A.) 2. Site Fee schedule - Each school s fee schedule will be posted on the school s website and at the bookstore. If the required fee isn t posted on the school website, a letter stating the fee must be drafted by the teacher, sponsor or coach and approved by the principal. The fee would then be communicated to all students and parents by the teacher, sponsor or coach. 3. Payment - Extracurricular activity fee requirements may be satisfied by non-tax credit payments, tax credit donations, student activity or PTO/Booster fundraising participation or by student activity, PTO or Booster group donations. The fee payment will be credited to the respective student for the specific extracurricular activity. a. Non-Tax Credit Payments Made by Cash, Check or Credit Card at the Bookstore Payments which are not intended to be tax credit donations should be paid at the school bookstore and may be paid by cash, check, or credit card to the school. These payments will be deposited into the Auxiliary Fund. b. Non-Tax Credit Payments Made Online Payments which are not intended to be tax credit donations may also be made online through the school webstore. Webstores may be accessed using a link on the school s website. Parents/guardians will log into their student s account and find the extracurricular fees listed under the Extracurricular Activity Fee department link on the webstore page. They may select the specific extracurricular activity fee and can pay by credit card. The parent/guardian will be able to print a receipt at the time of their online fee payment. These payments will be deposited into the Auxiliary Fund. c. Tax Credit Donations A parent (or other Arizona taxpayer) may designate a tax credit donation to cover the extracurricular activity fee. The donation may be earmarked for a specific student and extracurricular activity. Tax credit donations will be deposited into the Tax Credit Fund. i. Tax Credit Donations Made by Cash or Check Must be dropped off at bookstore so students can be credited in a timely fashion. The donation must be accompanied by an Extracurricular Activity Tax Credit Contribution Form. (Please see Appendix B or retrieve the form online at Receipts will be prepared by the District Office and mailed to the donors by January 31 of the following year. (See sample receipt in Appendix C.) 5

7 ii. Tax Credit Donations Made Online Donations may be made online at The donor will be able to print a receipt at the time of their online fee payment. d. Student Activity or PTO/Booster Club Fundraising A student may participate in fundraising efforts to cover a fee. Fundraising efforts may be organized through student activity clubs or PTO s and Booster clubs. Proceeds will be deposited into the Student Activity Fund and transferred to the Auxiliary Fund to cover extracurricular activity fees. For further guidance regarding fundraising, see Frequently Asked Question #8 later in this document. e. Student Activity Clubs, PTO s or Booster Group Donations Student activity clubs, PTO s or Booster groups may pay the extracurricular activity fees for students from their existing account balances. For student activity clubs, a purchase order is not needed, but the club would need to complete a substitute vendor invoice payable to the school. Club minutes documenting the approval, as well as the student list, should be attached to the substitute vendor invoice signed by a student officer and sponsor. The invoice should be submitted to accounts payable for payment as a direct pay. The check will be deposited into the Auxiliary account for the club. For PTO s or Booster groups, a check should be made payable to the school, with instructions as to which fees are being covered and for whom. The check will be deposited into the Auxiliary account for the club. 4. Payment Deadlines - Extracurricular activity fees generally must be paid within 2 weeks of the start of the activity or earlier, if deemed necessary. For cut sports, fees must be paid within 2 weeks of the date the final roster is determined. Exceptions may be granted with principal s approval for fundraising which occurs beyond 2 weeks of the start of the activity. 5. List of Eligible Students - The bookstore manager will print 2 reports, one from Blue Bear and one from the online tax credit system, to confirm who has paid for each activity. These reports will be submitted to the teacher, coach, athletic secretary or athletic director so that they can determine student s eligibility to participate. 6. Waiver - In cases of economic hardship, a Request for Financial Assistance for Extracurricular Activities Form may be completed by the parent/guardian. The principal, at his/her discretion, may waive all or part of the fee for one activity or for multiple activities that take place through the year. For audit purposes, copies of approved waivers must be maintained in the principal s office. A copy also may be provided to the family. (See Appendix D.) 6

8 REVENUE TAXPAYER GUIDELINES 1. Any Arizona individual paying state income tax can make a tax credit contribution to be used towards extracurricular fees; they do not need to have a student in school, nor do they have to live within the District boundaries. 2. Tax credits can only be made to an individual school(s) (as opposed to a department or organization such as PTO s or Boosters). Tax credit revenues will be tracked for the student, school and program, activity or grade level. It is permissible for sites to add the fee schedule to the back of printed Extracurricular Activity Tax Credit Contribution forms. 3. Tax credits that are received without any specified extracurricular program, activity, or grade level are considered undesignated and will go into the General Tax Credit Fund for that school. 4. For donations made by cash or check, the donor must fill out an Extracurricular Activity Tax Credit Contribution Form to accompany the payment. The contribution form is available at (See also Appendix B.) For K-8 schools, donations may be made by parents on the Infinite Campus payment portal at Non-parents and other community members should make K-8 payments at high schools, online donations may be made at 5. The tax credit donor must receive a receipt for tax credit donations. A pre-numbered tax credit receipt (which includes student information, school program, receipt information and the taxpayer s information) will be issued to the contributor by the District Office or the online system. 6. Donations made between January 1 and April 15 of each calendar year may be claimed as a tax credit in either the current or prior year at the taxpayer s discretion. Taxpayers should consult their tax preparer for further guidance. Donations made between April 16 and December 31 during a calendar year may be claimed for that tax year. 7. The tax credit applies only to Arizona Department of Revenue individual tax returns. Contributions from businesses or corporations cannot be accepted as tax credit donations. 8. Refunds of tax credit contributions WILL NOT be made unless approved by District personnel. 9. Tax credits cannot be issued for tuition-based classes where the student earns credit. These include, but are not limited to: The tuition part of preschool High school athletic academies Community College Courses Summer school 7

9 10. To claim the tax credit, taxpayers must contribute to a school-sponsored extracurricular activity for which the school district requires a fee. The Extracurricular Activity Fee Schedule is attached and is governing board approved each year. (See Appendix A.) REVENUE INTERNAL PROCEDURES 1. The Extracurricular Activity Tax Credit Contribution Form (Appendix B) can be distributed to taxpayers to identify the school and program of their choice. Once the funds are submitted, via cash, check or credit card, the Chandler Unified School District will issue a legal tax credit receipt. It is permissible for principals to place a list of their site s activities and fees on the back of the contribution form. Tax credit receipts are to be issued ONLY by the District Office personnel or through the online tax credit system and only upon receipt of money from the taxpayer. Under NO circumstances are blank receipts to be handed out to taxpayers. (See sample receipts in Appendix C). 2. Schools that accept a tax credit for more than one student or purpose must identify each student and the program activities separately. 3. After cash and check donations are received and recorded by the bookstore manager or designee, all donations and forms must be forwarded with a Cash Collection Report Form to the District Office. (Appendix E). 4. Tax credit funds collected by the school must be submitted to the District Office upon receipt. EXPENDITURES INTERNAL PROCEDURES 1. Tax credit funds can be used in conjunction with other District funds. The school must submit appropriate paperwork reflecting the different account codes and amounts. 2. In order to use tax credit funds for field trips, the field trip must be school sponsored and, if out of the state, must be School Board approved. (For further guidance, please refer to student travel guidelines found in the Administrative Manual/Field Trip Forms folder.) 3. Purchases made from General (Undesignated) Tax Credit accounts must have Site Council approval. 4. Expenditures must follow school district procurement regulations, i.e. contracted vendors, quotes, etc. 5. Schools shall comply with current procurement procedures. All purchase orders must be issued prior to goods and/or services being ordered or received. 6. Tax credit purchases must be made using a purchase order. Purchase requisitions must be complete, with description of goods or services, along with the account code, quotes, if 8

10 needed depending on procurement thresholds, and updated vendor information if needed. (See Appendix F.) 7. The teacher, coach or sponsor of the group must create, sign and submit a requisition to the principal. All requisitions must include the required paperwork and documentation. 8. The principal or designee must review and approve all requisitions created by the requestor. 9. The purchase requisition is submitted to the bookstore manager, school secretary, or designee for inputting. 10. If approved, the purchase order will be issued through the District purchasing department. 11. Some tax credit expenditures may also be made using a purchasing card (p-card). Refer to the Purchasing Card Policy and Procedure Guide for further guidance. DEPARTMENT OF REVENUE REPORTING REQUIREMENTS Districts are required to file a report with the Arizona Department of Revenue (ADOR) by February 28 of each year, on a form prescribed by the Arizona Department of Revenue that includes the following information: The total number and dollar amount of fees and contributions received during the previous calendar year. The total dollar amount of fees and contributions spent by the District during the previous calendar year. 9

11 TAXPAYERS - QUESTIONS/ANSWERS Sources: 1) Arizona Department of Revenue Publication 707 School Tax Credits Revised July 2015 and 2) Office of Economic Research & Analysis, Arizona Department of Revenue Guidelines for the Public School Extracurricular Activity (ECA) Tax Credit, August 14, (See Appendix H.) 1. How does this work on my tax return? As an example, let s say you made a $400 tax credit contribution. When you file your state taxes, you will record the credit on an Arizona Form 322 (downloaded from the ADOR website). If your state tax return calculates to a $500 refund, applying the credit will increase your refund to $900. If your state tax return calculates to a $500 liability (you owe) then applying the credit will reduce your liability to $ Can a taxpayer receive a refund of these tax credits? NO--The credits may only be used to the extent they reduce a tax liability to zero. Any unused amounts may be carried forward for not more than five consecutive taxable years. 3. Who can make a contribution? Contributions can only be accepted from individuals; contributions cannot be accepted from businesses or corporations. 4. Do I have to have children enrolled in school? NO--Any individual who pays Arizona State income tax can contribute. 5. Do I have to donate the full $200 or $400? NO--But remember, you can take this credit on any tax liability for state income taxes up to $200 on an individual tax return or $400 on a joint return. You may donate up to your $200 or $400 limit in installments during the calendar year or donate it at one time. 6. Can a taxpayer make a donation to an organization (e.g., PTO, Booster, school foundation, or school club) which then gives the funds in a lump sum to the school or directly pays for extracurricular activities? NO A.R.S requires that the fees be paid to a public school. Therefore, the payment must be made directly to the public school only. 7. What is a fee paid for the support of extracurricular activities? A fee is a dollar amount paid to a public school for the support of extracurricular activities. It is important to note that the Board-approved extracurricular activity fee must be charged to enrolled students to participate in an extracurricular activity in order for the credit to be available. A.R.S requires each school district board to determine which activities are extracurricular and what fees will be collected. 10

12 OTHER FREQUENTLY ASKED QUESTIONS 1. If an activity does not use Tax Credit monies, does student still have to pay an extracurricular activity fee? No, but some clubs may still opt to charge a fee to help with operating expenses. That fee would still need to fall within the appropriate range on the Board-approved Extracurricular Activity Fee schedule. 2. What monies can be used to pay the extracurricular activity fee? There are several ways to pay an extracurricular activity fee: a) A non-tax credit payment may be used to pay an extracurricular activity fee. b) A tax credit donation may be used to pay an extracurricular activity fee. c) A student may participate in fundraising efforts to cover a fee. Fundraising efforts may be organized through student activity clubs, PTO s or Booster clubs. d) Student activity clubs, PTO s or Booster clubs may donate funds to cover extracurricular activity fees. e) The principal may waive fees in cases of economic hardship. This requires the parent or guardian to complete a Request for Financial Assistance form, available through the principal s office. (See Appendix D.) 3. Can Booster groups deem summer time or out of season activities a private activity and charge a fee to participants (i.e.- competitive leagues, summer camps/leagues/tournaments, etc.)? This section is subject to revision. Please consult with the Disrict Athletic Director for further guidance. No, Booster groups may not collect fees for summer or out of season activities. These activities are deemed to be school-sponsored, and coaches or sponsors may determine a Category A Field Trip or Competition Fee which falls within the appropriate range on the Board-approved Extracurricular Activity Fee Schedule. Booster groups may pay the entry fees for summer or out of season activities for all students on an athletic team or in a student activity club, as long as the funds are raised by the boosters and students are not assessed a fee or required to participate in the fundraising efforts. 4. Who has authority to expend monies generated out of extracurricular activity fees? With principal s approval, the teacher, coach or sponsor related to a specific activity has authority to expend monies generated out of extracurricular activity fees which are deposited into an Auxiliary or Tax Credit account. 5. If students want to fundraise to cover their extracurricular activity fees, is a recognized student activity club required? Are there other fundraising opportunities? Yes, a recognized student activity club is required for student fundraisers. Also, joint fundraisers involving student clubs and PTO or booster volunteers may be conducted. 11

13 6. What must a coach or sponsor do to establish and use a student activity account? How can a student activity club be formed? a. Elementary - All student activities operate under Student Council at the elementary level. Subsidiary clubs such as Running Club or Yearbook Club must have the approval of the principal and Student Council sponsor in order to form. No separate constitution is required for these types of subsidiary clubs at the elementary level. b. Junior High and High School - The following are requirements for establishing a club: Each club must have a Constitution/ Rules & Regulations. A sample constitution can be obtained from Student Council. A copy of the customized club constitution must be submitted to an Administrator and Student Council for approval and will be kept in Student Council s files. There is no minimum member requirement, unless the club chooses to have one. Every club must be sponsored by a CUSD certified employee. All club members must obtain written parental/guardian permission before they can join a club, attend meetings or participate in activities. If the club sponsors a team, all team members must be CUSD students. The following (3) forms must be completed and submitted to the District Office every new fiscal year before a club can expend funds: Club Authorization, Club Sponsorship & Financial Agreement, and Interest Earnings. Contact site bookstore manager or Veronica Brown, District Office Accounting, for forms. 7. Where is the student fundraising money deposited for that activity and who is authorized to spend the money? For elementary clubs, all monies are deposited into the Student Council account within the Student Activity Fund. For junior high and high school clubs, student fundraising money is deposited into specific club accounts within the Student Activity Fund. Expenditures from student activity accounts, including extracurricular activity fees, must be approved by club members, with approval noted in the minutes. Requisitions and invoices require both a sponsor and student officer signature. 8. What are the requirements for student fundraisers? Student club fundraisers must have club, principal and District Office approval; a Fundraising Authorization and Approval Form is required (Appendix I). Student fundraising dollars must always be deposited into a student activities account. At the elementary level, fundraiser money is deposited into the Student Council account. At the junior high and high school level, fundraiser money is deposited into accounts for various recognized student activity clubs. PTO s or Booster groups may also organize fundraisers involving students from student activity clubs. These fundraisers must have principal and District Office approval and require a Fundraising Authorization and Approval Form. Proceeds from such joint fundraisers must be allocated to both the student activity club and the PTO or Booster groups based on effort devoted by each. The principal or designee determines the allocation, and the student activity 12

14 club portion may be further allocated amongst those students who actually participate in the fundraiser. 9. Can Booster groups plan, organize, and pay for trips exclusively for coaches/directors? May tax credit be used for these trips? Booster groups may plan, organize, and pay for these trips. Tax credit may not be used for adult only trips. 10. What expenditures are PTO/Booster groups allowed to pay for from their funds? a. Meals before and after games. b. Personalized uniforms or gear. c. Entry fees for summer or out of season activities (provided student is not assessed the fee by the boosters). d. Purchases of goods or services that supplement a district-sponsored activity and are not co-mingled with District funds. The purchase of certain goods may need to be subsequently donated to the District as discussed in FAQ No. 11 below. Goods or services purchased by PTO/Booster groups may only supplement the districtsponsored activity (i.e. provide some extra good or service for the program as opposed to being part of the required curriculum). District employees may not be paid directly by PTO s/boosters, but PTO s/boosters may contribute funds to the District to cover the employee costs. Persons providing independent contractor services may be paid solely by the PTO s/boosters as long as the contractor is approved by the District and complies with related District guidelines (i.e. fingerprinting, etc.) 11. Do PTO/Booster groups need to officially donate purchased items (shirts, equipment, etc.) to the District? a. PTO or Booster groups do not need to donate purchased items to the District unless the District has approved the donation and agreed to maintain the items. Life cycle costs, safety and maintenance considerations will be factored into the District s decision to accept donations. PTO or Booster groups will be expected to maintain any items which are not donated. b. Exception: Football helmets, football shoulder pads and motorized vehicles must be donated to the District to comply with safety regulations. 13

15 12. What uniforms (swim suits/shoes/etc.) can be purchased with District monies? Standard, non-personalized uniforms may be purchased with District capital funds, capital gifts and donations and tax credit. Personalized uniforms and gear may be purchased with auxiliary, student activities and tax credit funds. When purchased with District funds (tax credit or auxiliary), personalized items must be necessary for practice or performance or standard for the program and must be purchased for everyone in the activity. a. What is the dollar amount? Cost must be reasonable and appropriate for the activity. School procurement rules apply. b. How can Boosters offset costs for those items purchased? Boosters can donate money to the District. c. Can students keep the items purchased? Yes, if items cannot be reasonably reused by other students. 13. What are the set procedures for all permissible District based accounts and what are permissible expenditures for those accounts? a. Tax Credit Account? With principal s approval, the teacher, coach or sponsor related to a specific activity has authority to expend monies. General tax credit expenditures must be authorized by the Site Council, and the principal may then approve such expenditures. Eligible expenditures are defined by state statute. See Appendix G for Tax Credit Eligible Expenditures Determination Chart. Also refer to the District s Expenditure Guidelines. b. Student Activity Account? Expenditures from student activity accounts must be approved by club members, with approval noted in the minutes. Requisitions and invoices require both the sponsor and student officer signatures, as well as a copy of the minutes documenting club approval. c. Auxiliary Account? With principal s approval, the teacher, coach or sponsor related to a specific activity has authority to expend monies. Eligible expenditures are defined by state statute. Refer to the District s Expenditure Guidelines. d. Gift/Donation Account? With principal s approval, the teacher, coach or sponsor related to a specific activity has authority to expend monies in accordance with donor specification and Board approval of the gifts. Undesignated gifts may be spent at the principal s discretion. 14. Can high school athletic academies use Tax Credit monies? No, because academies are credit courses and tax credit may only be spent on activities which are non-credit. 14

16 15. Can an activity choose to use Tax Credit monies at any time or must they decide prior to the school year? Tax credit may be used at any time as long as an extracurricular activity fee is required and paid and other eligibility requirements are met. To qualify for tax credit spending, an activity must be optional, non-credit, school-sponsored, for enrolled students, and educational or recreational. The activity must also support the school s educational program. 16. If a coach chooses to participate in an optional in-state or out-of state AIA sanctioned tournament, competition or invitational during the season, are athletes required to pay a field trip fee? While all athletes must pay an extracurricular activity fee for athletics, an additional fee may be required if sufficient funds are not available to cover the cost of the trip. 17. Where do all extracurricular activity fees get deposited? Fees will be deposited into tax credit accounts or auxiliary accounts specific to the activities for which the fees are collected. 18. Can PTO/Booster groups pay for extracurricular activity fees? If so, what is the process? Yes, PTO or Booster groups may pay for extracurricular activity fees. A check should be made payable to the school, with instructions as to which fees are being covered and for whom. The check will be deposited into the auxiliary account for the specific activity. 19. Can parents select what sports their extracurricular activity fee goes towards if they play four sports? (example: child plays four sports in Junior High during a fiscal year; family max is met with participation in just three sports) The parent may pay for the first sport at the time the fee is assigned and may make an optional general donation in anticipation of the other sport(s). When the student makes a subsequent team(s) and fees are assigned for that sport(s), the parent may request a reallocation of the general donation to be applied to the other sport(s). 20. Can parents decide after they donate general tax credit monies to use that money for specific activity or field trip fees? Possibly, if the principal and site council have not otherwise obligated the funds to cover other needs. The principal will approve such requests. 15

17 21. What is the highest Family Max for a family who has at least two students in junior high and three in high school? a. Field Trips No overall maximum (a maximum applies for each trip) b. Athletics - $660 (junior high maximum $120 plus high school maximum $540) c. Performing Arts - $1,120 (junior high maximum $120 plus high school maximum $1000) *No family maximum for elementary level. **Principal can waive or reduce fees in hardship cases. *** FAMILY MAXIMUMS AT THE JR HIGH/HIGH SCHOOL LEVELS ARE TRACKED BY EACH INDIVIDUAL FAMILY. Families are asked to notify the school if they believe their family maximum has been met for the school year; school staff will then verify the information. 22. Can a non-family member designate tax credit monies for a student s extracurricular activity fees? Yes. 23. Can auxiliary accounts be utilized to reimburse Booster groups for services paid for and provided by Boosters? No. 24. Do schools charge ALL students a fee at the start of the year even if they don t know which students may take part in an extracurricular activity throughout the year? No. Fees will be charged to participants for each activity at the onset of the activity. However, a donor may choose to make the maximum allowed tax credit donation ($200 single filer, $400 married filer) at the beginning of the year and designate it for multiple activities and/or students. 25. If schools would like to access Tax Credit monies in the general fund do they need to charge every student a fee? No, so long as the monies will be spent on eligible extracurricular activities or field trips for which participating students have already been assessed a fee. 26. Will the fees created be consistent for campuses that share specific field trips, clubs or activities? No. Fees within the Board-approved fee schedule will be determined by each site based on activity cost and available funds. 16

18 27. Could an elementary school charge a $10 or $15 flat fee for field trips or other special activities per student, no matter what grade and no matter how many they go on per year? Yes. Grade level fees will be determined for each school year and may include field trips in addition to on-site presentations, Spelling Bee, Jr. Achievement, Art Masterpiece, and other special extracurricular activities. The fee must fall within the Board-approved fee schedule and should be determined by each site based upon the activity budgets and available funds. 28. Could Boosters or PTO s pay for the extracurricular fees for all students at the beginning of the year? Yes, based on the grade level or activity rosters. 29. If tax credit is used to pay for character education activities, does a fee need to be charged? No. A fee does not need to be charged. 30. What are accounting processes to be followed? See attached procedures under Payment Processes on Page For clubs which have charged dues in the past, will the extracurricular activity fee be charged in lieu of the dues, or may clubs charge dues in addition to the extracurricular activity fee? The extracurricular activity fee should be charged in lieu of all dues. Clubs may use the extracurricular activity fees to pay for expenses that would have otherwise been paid using dues money assessed in the past. 32. What if the collection of extracurricular activity fees is violated? The District will conduct periodic internal audits of fee collections. The principal is responsible for mandating fee collection amongst teachers, sponsors and coaches. Violations will be reported to the Superintendent. 33. Can a participant receive a refund for the extracurricular activity participation fees? Participation fees are non-refundable if a student is removed or quits an extracurricular activity, unless approved by a site administrator. 17

19 34. Since a majority of athletic teams will have an established student activity club, will participants have to pay both a Category B fee for athletics and Category D fee for clubs? Will performing arts participants (Category C) also have to pay a club fee (Category D)? No. If an activity falls in Category B or Category C and also has a related student activity club, the participant will only pay the established fee for their Category B or Category C activity. Category D is only for clubs or activities which do not otherwise fall into Categories B or C. 35. If a school utilizes tax credit monies for a Unified Sports program, in what category would Unified Sports be classified? Unified Sports falls in Category D. Only athletes (not the partners) will be charged the fee. 36. Can tax credit, auxiliary and student activity monies be utilized for expenses related to end of season banquets (food, trophies or awards for student participants, venue rental, coaches or sponsors gifts)? Tax credit, auxiliary and student activity monies may be utilized for banquet expenses for the student participants. Coaches or sponsors meals may be paid for using tax credit, auxiliary and student activities. Coaches or sponsors gifts may only be purchased by PTO s or Boosters. Any expenses to be paid using student activity funds must be approved by the club members and noted in the minutes. 37. If a student has already paid for their extracurricular activity fees and then transfers to another school within the District during the same school year, can the fees be transferred to the new school? Probably not, but this will be considered on a case-by-case basis, with the principals (or their designees) making the final decision. 38. I paid my $400 in tax credit in May of this year for my daughter s account. She was an 8th grader going into 9th grade (or a 6th grader going into 7th grade), how does this tax credit follow my daughter? When students are promoted from elementary to junior high or from junior high to high school, tax credit donations will remain at the school to which the donation was originally made. 18

20 39. If a coach is not otherwise employed at a school in a teaching or support staff role, can the coach be a sponsor of a club? Will the coach have access to the applicable auxiliary, tax credit and student activities accounts? The coach may sponsor the student activity club if he/she is certified. If not, then the school must designate a certified employee as the sponsor. The coach (whether certified or not) has authority to expend monies which are deposited into an auxiliary or tax credit account. All expenditures are subject to approval by the principal. Student activities expenditures must be approved by club members and noted in club minutes. 40. Are purchases of apparel for coaches allowed out of the Auxiliary account? Yes, coaches game shirts may be purchased using Auxiliary funds. Purchases are limited to $150 per approved coach per year. 41. Are performing arts students required to pay the Category C fee if they participate in performing arts club activities and/or school plays or concerts but do not compete or travel? No, performing arts students who participate in performing arts club activities and/or school plays or concerts but do not compete or travel may be assessed a Category D club fee. The teacher or sponsor should identify students who will compete or travel, and those students should be assessed a fee in Category C. Those students may also be charged an additional Category A fee for field trips based on the field trip budget and available funds. 19

21 Appendix A - Chandler Unified School District Extracurricular Activity Fee Schedule ACTIVITY CATEGORY SCHOOL Field Trip Fee (A) Field Trips and Competitions (per participating student per trip, the fee charged will be related to approved cost of trip and may be reduced or covered by tax credit donations or other fundraising) Elementary Junior High School $150 or less $75 or less one day *Principal and Coach/Sponsor will establish fee within the established range $350 or less overnight or out-ofstate Senior High School $500 or less one day $2000 or less overnight or out-ofstate Participation Fee (B) Athletics *Does not include field trips or competition fees (C) (Competitive) Performing Arts and Athletic Clubs (Including but not limited to: Band/Marching Band, Choir, Orchestra, Drumline, Color Guard, Drama, Spiritline includes Pom & Cheer, Hockey, Lacrosse ) *Does not include field trips or competition fees (D) All other extracurricular activities and clubs (per participating student per activity) Junior High School $20 Individual max: $60 family max: $120 Senior High School $20-60 Individual max: $180 family max: $540 Junior High School $30 Individual max: $60 family max: $120 Senior High School $ Individual max: $600 family max: $1,000 Elementary, Junior and $25 or less Senior High Schools *Does not include field trips or competition fees Note: The principal may waive the assessment of all or part of any fee if it creates an economic hardship for the family. Fee waiver forms are available at each school and must be submitted to the principal s office for review and approval. When a participation fee range exists, the Principal must approve the fee amount within the Boardapproved fee schedule. Extracurricular activity fee requirements can be satisfied by tax credit donations, fundraising participation or non-tax credit payments. Maximum amounts are specific to the activity category. (Ex. Participation fees from athletics cannot be combined with band). 20

22 Appendix B-Extracurricular Activity Tax Credit Contribution Form Chandler Unified School District Extra Curricular Activity Tax Credit Contribution Form Complete this form and return the completed form with your contribution to: Chandler Unified School District C/O Tax Credits, 1525 W. Frye Road, Chandler, AZ Contributor Information First Name Last Name Mailing Address City State ZIP Phone Method of Payment If you would like to make a tax credit contribution using a credit card, debit card or e-check, please make your contribution on our secure online system. To contribute online navigate to: Cash Money Order Check Payable to: Chandler Unified School District Total Contribution Amount: $ Contribution Designation Please direct my contribution as needed Please direct my contribution to one or more of the following schools (Contributions should equal the total contribution noted above): $ Andersen Elementary $ CTA - Goodman Campus $ Navarrete Elementary $ Andersen Junior High $ CTA - Humphrey Campus $ Patterson Elementary $ Arizona College Prep Erie $ CTA - Independence Campus $ Payne Jr High $ Arizona College Prep Oakland $ CTA - Liberty Campus $ Perry High $ Auxier Elementary $ Frye Elementary $ Riggs Elementary $ Basha Elementary $ Fulton Elementary $ Ryan Elementary $ Basha High $ Elite Performance Academy $ Sanborn Elementary $ Basha High (AMS) $ Galveston Elementary $ San Marcos Elementary $ Bogle Jr High $ Haley Elementary $ Santan Elementary $ Bologna Elementary $ Hancock Elementary $ Santan Jr High $ Carlson Elementary $ Hamilton High $ Shumway Elementary $ Casteel High $ Hartford Sylvia Encinas Elementary $ Tarwater Elementary $ Chandler High $ Hill Academy $ Weinberg Elementary $ Chandler Early College $ Hull Elementary $ Willis Jr High $ Conley Elementary $ Jacobson Elementary $ CTA - Freedom Campus $ Knox Elementary I wish to designate this money for (Optional): General Extracurricular Activities direct as needed Specific Eligible Activities: Activity or Grade Level Student First Name Student Last Name $ $ $ $ For Chandler Unified School District Use Only Received By: Total Received: $ Date: This contribution is eligible for the Arizona State income tax credit as allowed by ARS Up to $200 per individual and up to $400 for married couples filing jointly can be claimed on personal income taxes. An official receipt will be mailed to the address provided by January 1. Contributions are non-refundable by the Chandler Unified School District. Please consult your personal tax advisor to determine the application of the credit. 21

23 Chandler Unified School District 1525 West Frye Road Chandler, AZ (480) APPENDIX C-SAMPLE RECEIPT DONOR NAME DONOR ADDRESS DONOR CITY, STATE & ZIP Official Receipt DATE 01/01/2014 CUSTOMER# T50000 CUSTOMER NAME DONOR NAME RECEIPT # CR AMOUNT $ *** PLEASE KEEP THIS RECEIPT FOR YOUR TAX RECORDS *** PAY TYPE CK INVOICE# 0000 DESCRIPTION CHANDLER HIGH SCHOOL BAND STUDENT NAME AMOUNT $ RECEIVED BY: CATHI TAYLOR Thank you so much for your generosity. You are helping us make a difference with the students we serve. 22

24 APPENDIX D - REQUEST FOR FINANCIAL ASSISTANCE REQUEST FOR FINANCIAL ASSISTANCE FOR EXTRACURRRICULAR ACTIVITES STUDENT NAME: SCHOOL: HOME ADDRESS: PHONE #: STUDENT ID#: PARENT/GUARDIAN NAME: OCCUPATION : EMPLOYER: WORK PHONE: REQUEST INFORMATION Extracurricular activity(s) you are requesting assistance for: Please explain why the fee should be waived or reduced: Parent/Guardian Signature: Date: TO BE COMPLETED BY SITE/DISTRICT ADMINISTRATION FEE SCHEDULE: Amount of fee(s): Amount of fee(s) to be waived Amount paid: TOTAL BALANCE DUE: Site/District Approval: Date: *Fee waiver forms must be submitted to the Principal s office for review and approval. Approved waiver forms must be maintained in the Principal s office. 23

25 APPENDIX E-CASH COLLECTION REPORT FORM STUDENT ACTIVITY AUXILIARY DISTRICT SERVICES SCHOOL DATE ACCOUNT NAME ACCOUNT CODE EVENT/SOURCE OF FUNDS CLUB SPONSOR INVENTORY SALES DESCRIPTION OF ITEM SOLD BEGINNING ENDING QUANTITY SELLING INVENTORY INVENTORY SOLD PRICE QUANTITY QUANTITY SALES AMOUNT (QTY SOLD X PRICE) INVENTORY VERIFIED BY: SPONSOR SIGNATURE OTHER REVENUE DESCRIPTION Tax Credit All-Day Kindergarten Preschool Kids Express Summer School Lost Textbooks / Lost Library Books (circle one) Instrument Rental Other: DATE Total Sales Total Other Revenue AMOUNT DENOMINATION CHANGE FUND ISSUED CASH/CHECKS RETURNED Checks TOTALS LESS CHANGE FUND ISSUED ( ) TOTAL DEPOSIT (A) CHANGE FUND ISSUED TO: Reconciliation Total Deposit (A) $ Total Sales / Other Revenue (B) $ Cash Overage / (Shortage) (A)-(B) $ Reason for Overage / (Shortage): Sponsor / Other Depositor Date Club Officer Date Note: Two counts / two signatures required when making Student Activities deposits DEPOSIT RECEIVED BY: CLUB OFFICER / SPONSOR SIGNATURE DATE BOOKSTORE MANAGER / DESIGNEE DATE CHANGE FUND AND CASH COLLECTION VERIFIED BY: BOOKSTORE MANAGER / DESIGNEE SIGNATURE DATE COPY 1-ACCOUNTING COPY 2-BOOKSTORE / FRONT OFFICE COPY 3-CLUB / DEPOSITOR COPY 4-BOOKSTORE CHANGE RECEIPT 24

26 APPENDIX F - REQUISITION STUDENT ACTIVITIES TAX CREDIT AUXILIARY SERVICES DATE ACCOUNT NAME ACCOUNT NO. NAME OF VENDOR ADDRESS CITY STATE ZIP CODE PHONE NO. FAX NO. W9 FORM NEEDED FOR NEW VENDORS MUST INCLUDE MINUTES. MUST INCLUDE ART WORK FOR T-SHIRT ORDERS QUANTITY CAT NO. DESCRIPTION UNIT PRICE TOTAL AMOUNT SUBTOTAL Minutes Dated TAX SHIPPING TOTAL UNENCUMBERED BALANCE DATE REQUEST AMOUNT NEW BALANCE STUDENT OFFICER(S) SPONSOR BOOKSTORE APPROVED ACTIVITIES DATE APPROVED TAXCREDIT DATE ORG KEY OBJECT PRINCIPAL S SIGNATURE/DATE 25

27 Appendix G--Tax Credit Eligible Expenditures Determination Chart Ask yourself the following questions: In accordance with A.R.S (G)(2) and A.R.S (24): Yes No 1. Is the activity district/school-sponsored? 2. Is the activity for enrolled students? 3. Is the activity optional? 4. Is the activity noncredit? 5. Does the activity supplement the district/school s educational program? 6. Does the district/school charge a fee for participation in the activity? 7. Is the activity fee paid directly to the district/school? 8. Was the fee for this activity adopted by the Governing Board at a public meeting after notice to all parents of enrolled students? 9. Has the Governing Board authorized the principal to waive all or part of the activity fee if it creates an economic hardship for a student? If the answers are yes to the above nine questions, then extracurricular activities fees tax credit monies may be used to support the activity. If the answer is no to any one of these questions, then the tax credit monies may not be used to support the activity 26

28 Appendix H - Arizona Department of Revenue Documents 27

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