• ACTIVITY FUND VS. BOOSTER CLUB

    • Activity Fund Account:
      • Funds are deposited in the school’s Activity fund
      • Purchasing is done through the purchase order process
      • The coach or sponsor would have access to a school district credit card for purchases
      • No booster club membership is required
      • Do not have to file with the Secretary of State
      • Do not have to file an annual tax form
      • Can use the Pearl Public School District Tax ID# for purchases
      • Fundraisers must be approved by the Superintendent
      • Coach or Sponsor is responsible for getting money to the school or athletic bookkeeper
    • Small Booster Club:
      • Holds a meeting to establish membership
      • Elect officers
      • Has a Constitution and By Laws
      • Applies for their own Tax ID#
      • Opens a bank account in the booster club’s name
      • Files Articles of Incorporation on the Secretary of State website ($50.00 fee)
      • Files a Charitable Notice Exemption on the Secretary of State website ($50.00 fee)
      • Required to hold two meetings annually with three board members present
      • Reports on a financial statement and a bank statement to the Assistant Athletic Director quarterly
      • Must adhere to the School Board Policy for Booster Clubs
      • Fundraisers must be approved by the Superintendent
      • Fundraisers for Building projects must be School Board approved
    • Large Booster Club:
      • Same requirements as Small Booster Clubs
      • Encouraged to file with the IRS for a 501 (C)(3) tax exemption status
        • means a club or organization is a charity that can accept donations and write the donor a letter acknowledging the contribution is tax exempt from the IRS.
        • Booster Clubs with the 501 (C)(3) tax exemption status are required to file Form 990 with the IRS annually.

     

    HOW TO SET UP A BOOSTER CLUB

    • Hold a meeting to establish membership and an election of officers. The officers should create bylaws and a constitution.
      • A school district employee cannot be an officer or handle funds.
    • Obtain a Tax ID # from the IRS. A Tax ID number is an identification number assigned by the IRS to an organization (Employer Identification Number (EIN)). A Tax ID can be obtained by applying on the IRS Select Charities – Apply for EIN online.
      • Requires a Social Security number to verify US Citizenship.
      • Download instructions here
    • File Articles of Incorporation with MS Secretary of State (Bylaws and Constitution)
      • $50.00 fee
    • File a “Charitable Notice Exemption” with the MS Secretary of State. This must be done before you can accept any donations. This is only for organizations that collect over $25,000.00 annually.
    • Tax Exemption - If the organization wants to make tax-exempt purchases, contact the MS Department of Revenue and ask for a Letter of Tax Ruling. Most resale purchases can be made tax-free using the MS Dept. of Revenue Notice 72-13-007.
    • Once the Tax ID number is established, a bank account can be opened on the name of the Booster Club.
      • A school district employee cannot be on the bank account.
      • Booster Clubs are not allowed to use the Pearl Public School District Tax ID# for any reason.
    • Two scheduled meetings must be held annually with three board members present. A financial statement must be reported at each meeting showing all income and expenses.
    • A Financial statement and a bank statement must be emailed to the Assistant Athletic Director quarterly.
      • Assistant Athletic Director – lweems@pearlk12.com
    • The Booster Club must adhere to the school board policy concerning Booster Clubs and Fundraising.