Guidelines and Best Practices for Robotics Booster Clubs
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- Damian Rodney McCormick
- 8 years ago
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1 Guidelines and Best Practices for Robotics The information in this guideline is not intended to serve as legal or accounting advice without the additional consultation of a professional. We are simply giving ideas that are based on our research and experience. Readers are encouraged to consult with professional advisors for advice concerning specific matters before making any decision. Note: If the booster club will be associated with a school, please check with your school for specific requirements and policies. While the general principles will be the same, each school district has distinct policies and procedures for school-based booster clubs. Table of Contents: Determine which type of organization to form..page 1 Option 1: Unincorporated Nonprofit Association.. page 2 Option 2: Incorporated Nonprofit Association...page 3 Option 3: Become an IRS recognized 501(c)3 Nonprofit...page 5 Best Practices. page 6 Team Donations made to.. page 7 Appendix Determine which type of organization to form Option 1: Unincorporated Nonprofit Association Option 2: Incorporated Nonprofit Association 2a: Join National Booster Club Training Council (NBCTC) 2b: Join Parent Booster USA Option 3: Become an IRS recognized 501(c)3 Nonprofit 1
2 Option 1: Unincorporated Nonprofit Association BASICS: Only if annual revenues less than $5000 per year (good for Jr.FLL and FLL teams) See NC General Statue: Unincorporated Nonprofit Association Act: STEPS: File Statement of Appointment of Agent for a Nonprofit Association (see Appendix A) $5 filing fee Apply for an EIN (Employer Identification Number). This is needed in order to open a bank account for the booster club. Money cannot be handled through an individual s bank account. Apply online: or file the paper form SS-4 found in Appendix B. o TIPS: ONLINE FORM: Legal Structure: click View Additional Types Choose: Other Non-Profit/Tax-Exempt Organizations Why is the Non-Profit/Tax-Exempt Organization requesting an EIN? Choose: Banking purposes PAPER FORM: Line 9a: Type of entity: Other nonprofit organization (specify) Booster Club Line 10: Reason for applying: Banking purpose (specify purpose) handle booster club funds Line 16: Best describes the principal activity of your business Other (specify) education 2
3 Option 2: Incorporated Nonprofit Association BASICS: Annual revenues over $5000 per year (good for FTC and FRC teams) Donors wishing to make tax-deductible contributions to the booster club may do so through Annual tax returns must be filed Nonprofit but not necessarily tax-exempt Can be community or school based STEPS: Choose a name for the booster club Do a search to ensure that the name is not already in use and cannot be easily confused with another existing name: Determine who will be the registered agent for the club. Elect officers. Adopt By-Laws and Financial Policies (see sample here scroll down for By- Laws: ncial%20practices.pdf File Articles of Incorporation Nonprofit Corporation with the NC Secretary of State (see Appendix C) Be sure to include provisions regarding the distribution of the corporation s assets upon dissolution (see Appendix D). $60 filing fee Apply for an EIN (Employer Identification Number). This is needed in order to open a bank account for the booster club. Money cannot be handled through an individual s bank account. Apply online: Or file the paper form SS-4 found in Appendix B. 3
4 o TIPS: ONLINE FORM: Legal Structure: click View Additional Types Choose: Other Non-Profit/Tax-Exempt Organizations Why is the Non-Profit/Tax-Exempt Organization requesting an EIN? Choose: Banking purposes PAPER FORM: Line 9a: Type of entity: Other nonprofit organization (specify) Booster Club Line 10: Reason for applying: Banking purpose (specify purpose) handle booster club funds Line 16: Best describes the principal activity of your business Other (specify) education Your booster club is now ready to go! You do not have to do anything more at this point. The following are more options to consider. Join National Booster Club Training Council Benefits: Access to resources, materials and workshops Discounted liability insurance program - $89 yearly cost NBCTC dues - $195 yearly Join Parent Boosters USA (ONLY for school affiliated booster clubs) Benefits: Access to resources, materials and workshops Discounted liability insurance program - $170 yearly cost Dues - $195 first year; $95 yearly renewal Able to use Parent Boosters USA group letter of exemption 4
5 Option 3: Become an IRS recognized 501(c)3 Nonprofit BASICS: Must file 990 tax return annually Donors wishing to make tax-deductible contributions may do so directly to the booster club Additional fees and regulations STEPS: Do everything described in Option 2: register your name, file incorporation papers with the state, apply for an EIN, open a bank account File IRS Form 1023 Review resources and publications found here: Exemption $850 filing fee 5
6 BEST PRACTICES Maintain a Booster Club Corporate Book o Articles of Incorporation o Bylaws o EIN o Banking Documents (signature cards, etc..) o Meeting Minutes o All Official Documents (tax returns, membership forms, etc ) Active Committees o Booster Club Executive Committee President, VP, Secretary and Treasurer o Booster Club Board of Directors Executive Committee, Past Officers, Community Leaders, School Officials o Standing Committees as needed to oversee club activities Nominating Committee to recommend members for office in the coming year Audit Committee to conduct a yearly of financial activities Club Dues and Individual Fundraising Accounts It is ok to charge club dues to team members and families. Consider having a policy to allow scholarships for students who may not be able to afford the club dues. It is generally NOT OK to establish individual accounts for those who participate in fundraising activities. All funds raised by the Booster Club are to be used for club activities and to support all team members equally. Please consult a professional for advice in this area. Please see Appendix E: Individual Fundraising Accounts 6
7 Team Donations made to Donors are welcome to make a donation for a specific FIRST Robotics team to. Donations may be made by check, money order or credit card. To make a donation by credit card, donors may use the donation button link on the website. All donations MUST CLEARLY specify for which team the funds are designated. Which level of FIRST team (FLL, FTC, FRC) and a team number must be provided at the time of the donation. In order for the funds to be released to a team, the team must provide a completed W-9 to to keep on file. This W-9 must reflect a booster club account and may not be for an individual. A 5% processing fee will be assessed for all team funds. (Thus, if a donor contributes $100 to FRC Team 1234, the team will receive a check from NC FIRST Robotics for $95.) Donors will receive a letter of acknowledgement from affirming the tax-deductible contribution. Questions? Please contact: Marie Hopper Executive Director, Inc. ncfirstrobots@gmail.com
KISD 285-835 August 2015 1
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