Checklist

 

The following checklist serves as a guide to help ensure that your Parent Organization have complied with the District's Board Policies and guidelines and federal and state regulations governing Parent Organizations. In addition, information you document here will help future officers continue your compliance efforts.

Initial Year and when changes occur

  1. Please note: For this coming school year, 2012-2013, all parent organizations must complete a Parent Organization Registration & Approval Form. In the future, if any parent is planning to establish a new parent organization, written approval must first be obtained from the School Principal or Administrator (if the organization is not located at a school) before proceeding with any other steps to create a Parent Organization and to organize any activities by completing the Parent Organization Registration & Approval Form. Principals, after signing this form, please send a copy to the Department of Internal & Systems Control.

  2. If you haven't yet done so, please apply for IRS 501(c)(3) exemption. The District is requiring all Parent Organizations to be IRS 501(c)(3) organizations by the end of the school year 2012-2013. Please see Federal Regulatory Information for more details.

  3. Provide the School Principal or Administrator (if the Parent Organization is not located at a school) and the Department of Internal & Systems Control with the Parent Organization's SS-4, Determination Letter from the IRS, Articles of Incorporation or Association and Bylaws (Association and Corporation) when they are originated. In addition, provide updated copies as changes or amendments are made. 

    Exception for 2012-2013 only: If a Determination Letter is not available by September 15th, 2012, please send us a statement signed by an officer that the organization has filed or will be filing, within the school year, a Form 1023 (Application for Recognition of Exemption under Sec. 501(c)(3) and send a copy of your completed Form 1023 to the Department of Internal Control as soon as you file it.  Also, please send the Department of Internal Control and the Principal a copy of the Determination Letter as soon as you receive it from the IRS.

Annual Submissions (Due by September 15th)

  1. Provide the District's Internal & Systems Control Coordinator and the School Principal or Administrator (if the Parent Organization is not located at a school) with the Parent Organization's official mailing address and with a list of Parent Organization officers by September 15th each school year and as officers change by completing the Parent Organization Information Sheet.

  2. Provide a Financial and Review Report for the fiscal year ending the previous school year to the School Principal and the Executive Secretary of the Superintendent by September 15th. For more information, please refer to the Financial Report and Review Report sections under Taking Care of Business in these Guidelines.

Insurance

  1. Parent Organizations should consider the purchase of liability insurance to protect the organization and its members. Coverages to be considered should include general liability, officer's liability, business personal property (if booster owned property exists), and fidelity (otherwise known as bond) coverage. The cost of the insurance varies depending on the amount of coverage, but is generally reasonable. Insurance underwriters for parent Organizations, in many cases, require an annual audit to be performed by an Audit Committee or an external auditor and must have a procedure in place to have bank statements and reconciliations reviewed by a member without check signature authority.

Fundraisers

  1. Provide the Sponsor and the School Principal or Administrator (if the Parent Organization  is not located at a school) with a list of fund-raisers planned for the current year by September 15th.

    On this list, please include the following information:
    • Purpose of the fund-raiser.
    • Type of fund-raising activity (ie, candy sale, car wash, BBQ, etc.).
    • Date(s), time(s), and place(s), of the activity.
    • Name of the sponsoring organization.
    • Name and phone number of person(s) in charge of the fund-raiser.
    • Name and phone number of the person who will be handling the money for the fund-raiser
    NOTE: Sending a list of the fund-raisers does not constitute an application for approval of the fundraisers and the Principal's acceptance of the list does not indicate approval of these activities.
  2. Submit a completed Fundraising Activity Permission Request for Parent Organizations at least 30 days prior to the fund-raising activity.

  3. The Parent Organization  cannot require members or students to fund-raise or raise a certain amount. For example, a student's ability to attend a trip cannot be based on raising a certain amount of money. If your Club is currently requiring fundraising, discontinue this requirement.

  4. The Parent Organization  cannot use individual accounts to credit an individual for funds raised. If your Club is using individual accounts currently, this practice should be discontinued.

    Fundraising is an opportunity to generate revenue for the Parent Organization  as a group, not individuals. Therefore, revenues should be recorded in a group account where all members or students have the same opportunity to benefit equally from the revenues.

    One member or student should not receive a larger benefit from fundraising than another. In addition, if a member or student chooses not to participate in the fundraiser, that person still receives an equal benefit from the revenues generated.

    If your parent organization has received a limited tax-exemption from the Texas State Comptroller's Office, your organization is entitled to two (2) “one-day, tax-free” sales/auction days per calendar year.

  5. At the conclusion of the fundraising activity, it is recommended that an Operating Report and applicable attachment (A, B, or C) be completed and provided to the organization's treasurer and not the school. The organization is responsible for handling the money received and the related expenditures as well as keeping the fund-raiser records as required for record retention.

  6. If you have received a sales tax exemption from the Texas Comptroller's Office, you are entitled to two “one-day, tax-free” sales days, indicate the “one-day, tax free” sales/auction that have been used or that are planned:

    Calendar Year:  
    Date / Fundraiser:  
    Date / Fundraiser:  
    Calendar Year:  
    Date / Fundraiser:  
    Date / Fundraiser:  


Financial Matters

  1. The Bank accounts used by the Parent Organization  include:

    Bank Name
    Account Number
       
       
       
  2. Determine the identification number used for the bank accounts. The Parent Organization 's Employee Identification Number (EIN) should be used. Do not use an individual's Social Security Number, and do not use the District's EIN.

    Organization's EIN:  
  3. Update the authorized signers on your bank accounts as officers change. The current authorized signers include the following Parent Organization  officers:

    Name of Person
    Position Held
    WISD Employee? (Y/N)
        Y/N?  
        Y/N?  
        Y/N?  

IMPORTANT

District employees may serve parent organizations as a general member or in an advisory capacity and should not have control or signature authority over the parent organization's funds, including petty cash or miscellaneous discretionary funds. District employees SHALL NOT serve as the Treasurer, fundraising chairperson, nor serve in any capacity over the organization's financial affairs, including an authorized signer on the bank account.

A District substitute or temporary worker may be a Treasurer or authorized signer on the bank account of a parent organization with written approval from the principal or supervisor where the organization is located.

Please send a copy of the approval to the Internal & Systems Control Department.

See Request for Authorization for WISD Employee to be a Treaurer or Signer on Parent Organization Bank Accounts.


Federal Regulations

The following items need to be done only once since the origination of the Organization.

  1. Obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS).

    The EIN for the Organization is:__________________________________

  2. Determine whether the Parent Organization  has received tax-exempt status as a public 501(c)(3) organization from the IRS. If the IRS has approved the Organization's tax-exempt status, a Determination Letter would have been received from the IRS.

    The Organization received its tax-exempt status as a public 501(c)(3) organization from the IRS:

    YES _____ NO _____

    If you have not applied for the tax-exempt status, complete the IRS Form 1023, Application for Recognition of Exemption, and Form 8718 User Fee for Tax-Exempt Organization Determination Letter Request. Submit these forms and the application fee to the IRS.

    If you have applied for the tax-exempt status but you have not received your Determination Letter, you should receive an Acknowledgement of Your Request. Call the IRS to determine the status of your application.

  3. If you have received a Determination Letter from the IRS approving your Organization as a public 501(c)(3) organization, determine whether your status as a public tax-exempt organization is temporary.

    If the tax-exempt status is temporary, the "Advance Ruling Period" ends on:

    _____/______/_________

Under new regulations, an organization is no longer required to file Form 8734 (Support Schedule for Advance Ruling Period) upon expiration of the advance ruling period.  Instead, the organization retains its public charity status for its first five years regardless of the public support actually received during that time and beginning with the organization's sixth taxable year, it must establish that it meets the public support test by showing that it is publicly supported on its Schedule A to Form 990, Return of Organization Exempt from Tax.  Please refer to the irs website for more details.

The following items may be applicable during each school year or calendar year.

  1. Determine whether your Organization is in good standing with IRS by calling the Exempt Organization Section of the IRS.

  2. File the IRS Form 990-N, 990-EZ or 990, Return of Organization Exempt from Income Tax, whichever is applicable. Most small tax-exempt organizations whose annual gross receipts are normally $50,000 or less are required to electronically submit Form 990-N, also known as the e-Postcard, unless they choose to file a complete Form 990 or Form 990-EZ instead. The e-Postcard is relatively easy to complete. All you need is eight items of basic information about your organization. Please go to www.irs.gov for more information.

    The 990 is due by the 15th day of the 5thmonth after the Organization's accounting year ends.

    Official Year-end: ____/____/______ Due Date for Return: ____/____/______

  3. Issue 1099 forms to applicable individuals or businesses by January 31st of each year. If 1099 forms are issued, send information to the IRS by February 28th, of each year.

For more information about these federal requirements, please refer to Federal Regulatory Information.


State Regulations

The following items need to be done only once since the origination of the Parent Organization .

  1. Determine whether your organization has obtained a Texas Sales Tax Permit.

    The Organizations Sales Tax Permit Number is: ____________________

  2. Determine whether your organization has obtained an exemption from sales tax from the Texas State Comptroller's Office.

    The Organization has received a limited sales tax exemption from Texas State Comptroller's Office:

    YES
    _____ NO _____

    Reminder: Only those organizations with a limited tax-exemption from the Texas State Comptroller's Office are entitled to the two (2) “one-day, tax-free” sales/auction days.

    NOTE: Please refer to http://www.window.state.tx.us/taxinfo/exempt/exemptfaq.html for more information about applying for sales and franchise tax exemptions.

  3. Determine whether your organization is incorporated:

    YES_____ NO_____

    If the Organization is incorporated, determine whether your organization has obtained an exemption from Texas franchise tax from Texas State Comptroller's Office.

    The Organization has received a franchise tax exemption from the Texas Comptroller's Office:

    YES
    _____ NO _____

    NOTE: Please refer to http://www.window.state.tx.us/taxinfo/exempt/exemptfaq.html for more information about applying for sales and franchise tax exemptions.

The following item is applicable each school year or calendar year.

  1. File the Organization's Texas Sales and Use Tax Return as required.

    The Texas State Comptroller's Office determines whether the report needs to be filed quarterly or annually and the reporting schedule is subject to change.

    The Organization is required to file its Texas Sales and Use Tax Report Return:

    MONTHLY _____

    QUARTERLY _____

    ANNUALLY _____

  2. File the Organization's Texas Franchise Tax Return if required.

For more information about these state requirements, please refer to State Regulatory Information.


Parent Organization  Guidelines

  1. As your Organization President or Treasurer changes, show the new officers how to access the Parent Organization Guidelines handbook on the Waco ISD website. And please submit information about the new officers to the District's Internal & Systems Control Coordinator and the School Principal or Administrator (if the Parent Organization is not located at a school, as delineated in number 1 above.)