London Elementary PTO By-LawsDate Approved by PTO: ______________

The following by-laws are operating procedures and best practices to ensure a successful and efficient Parent Teacher Organization (PTO) that supports students and the school community.

PTO Responsibilities All parents/guardians and teachers/staff are members of the London Elementary Parent Teacher

Organization. The mission of the London Elementary PTO is for parents/guardians and teachers to work together to

support students and school programs through fundraising and volunteering. The PTO will hold monthly meetings to discuss and plan for school events and fundraisers. A PTO binder with the following information must be maintained and kept in the school office for

review by any PTO member. This official binder should remain in the school office and must be turned in to the principal at the end of the school year.

1. PTO By-Laws 2. Monthly Financial Reports with reconciled bank statement attached (cut out bank account #; all

meeting agenda/minutes; 3. Fundraiser Approval forms 4. Fundraiser Worksheets5. Annual Financial Report 6. List of PTO Officers with contact numbers7. Annual Budget8. Meeting minutes and agendas 9. Liability Insurance Policy

The PTO should communicate regularly with parents and staff to inform of upcoming fundraisers, success of previous fundraisers, meeting dates, etc. Modes of communications include: newsletter, school website, morning announcements and automated calling system. The PTO president should provide the school secretary a 5 digit copy machine number in July. Copies can be made on the office machine only. To conserve paper, it is recommended that multiple slips per page be used to be cut apart and sent home.

The PTO is responsible for keeping the PTO link updated on the school website. PTO officers may email the school library media specialist with any news or announcements to be included on the school website. jennifer.vaughn@laurel.kyschools.us

PTO will review by-laws annually for revisions to ensure by-laws are correct and up to date. This should be completed during the first two months of the school year.

PTO officers will schedule an orientation meeting with newly elected officers in May to share information about by-laws and financial procedures, and to hand over all PTO records for the year.

The PTO must secure general liability insurance each school year. Proof of liability insurance coverage must be submitted to the principal prior to commencing any fundraising activities.

All PTO Officers must comply with KDE Redbook Accounting Procedures for Kentucky School Activity Funds procedures. The principal and school secretary will provide help as needed and answer any questions regarding Redbook procedures.

PTO Officers Parent members will hold the following PTO officer positions: president, vice president, secretary, and

treasurer.

President Responsibilities: serve as chairperson at each meeting; consult with PTO officers and school staff to prepare meeting agendas; collaborate with officers and school staff to plan and implement fundraisers; attend fundraiser events; turn in to the school principal and bookkeeper a list of PTO Officers before August 1; submit fundraiser approval form to principal; collaborate with school staff and other officers to support school events and programs; etc

Vice-President Responsibilities: fulfill responsibilities of the president if president is unable to complete; assist president with responsibilities; attend fundraiser events; collaborate with school staff and other officers to support school events and programs; etc.

Secretary Responsibilities: take minutes at each PTO meeting; type and email minutes to PTO officers and principals within 2 days after each PTO meeting; copy minutes to be approved for meetings; read minutes for approval at meetings; attend fundraiser events; collaborate with school staff and other officers to support school events and programs; etc.

Treasure Responsibilities: reconcile monthly bank statements; prepare monthly financial reports; report monthly financial reports at PTO meetings; the PTO Treasurer (of the preceding school year) will complete and turn in the Annual Financial Report for the fiscal year ending to the principal and bookkeeper by July 15; collaborate with PTO officers to complete a proposed budget within the first thirty days of the school year and turn in to the principal and bookkeeper; attend fundraiser events; collaborate with school staff and other officers to support school events and programs; etc.

District employees may not serve as treasurer or in a check signing authority on the PTO but can serve as a general member or as a member of its executive board.

PTO Officer Elections and Terms PTO officer terms are for one school year beginning in July and ending in June. It is the responsibility of the PTO to conduct an annual PTO Officer Election. The annual PTO officer

election for the following year shall be held in May of the preceding school year on a date determined by the PTO. If only one parent is nominated for each PTO officer position, an election will not be held. Each parent nominated to serve for each office will be appointed as the PTO officer for the coming school year.

Nominations: Candidates shall be nominated for the position of PTO officer by a letter of nomination. The letter shall be signed either by a candidate nominating himself/herself, or by another parent or staff member. All letters of nomination shall be submitted to the PTO no later than three days prior to the scheduled election. (See appendix for sample PTO Officer Nomination Form.)

Sample Ballot: The PTO shall ask each person nominated to sign a letter of acceptance stating that he or she is willing to serve on the PTO if elected and that he or she meets the qualifications. All names of those nominated, willing, and eligible to serve shall then be listed alphabetically on a sample ballot form and distributed to all parents at the school no later than three days before the election.

Elections: A committee of parents shall oversee the election. Election of parent members shall be held at the school on the date selected by the PTO and principal. Elections will be held throughout the school day as well as during the PTO meeting held at the end of the day. Each parent shall be given a ballot listing the names as were found on the sample ballot and shall vote for the number of officers that are then vacant. The ballots shall be collected throughout the day in a ballot box. The PTO shall convene a meeting at the end of the school day and ballots are to be counted in the presence of the parents. Any person receiving a majority on this ballot shall serve as a PTO Officer for the coming year.

Procedure If a Majority Is Not Received: If fewer candidates receive a majority of votes than the number needed to fill the open seats, the person getting the smallest number of votes shall be removed from the ballot, and the parents shall vote again for the number of persons needed to fill the remaining vacancies. Any person receiving a majority of votes shall be deemed elected. This process

of removing one name shall be repeated as often as necessary to elect candidates by majority to all open positions.

Procedure for Determining Majority: The PTO parent committee overseeing the election shall determine majority vote by counting the total number of votes cast during the election. Majority is determined as one greater than half the total number of votes cast. This number shall be announced to parents prior to the counting of the votes.

PTO Meetings PTO will follow “Your Duty Under the Law: The Kentucky Open Records and Open Meetings Acts” and

“Managing Government Records”. The principal will email these documents to each PTO Officer at the beginning of the school year. (See appendix for both documents.)

The meeting date/time for the year will be determined at first PTO meeting. Once this has been voted on, schedule all monthly meeting dates for the year. Post the meeting dates for the year at the school and on the school website. (It is recommended the PTO meets at the middle or end of the month to enable the bank statement to be reconciled prior to each monthly meeting.)

Special called meetings in addition to monthly meetings may be scheduled at any time as deemed necessary.

Communicate with parents about PTO meetings the week before the scheduled meeting: send home a slip with students the week before; post on website the week before (email information to Jennifer Vaughn and she will post the meeting on the website); complete a One Call Now Announcement to be sent out the week before – complete the form in the Appendix and turn in to Principal no later than 2 days before the message is to be sent.

It is the responsibility of the PTO President to chair each meeting and to prepare meeting agendas with input from all officers. A preliminary agenda should be emailed to each officer, principal and assistant principal 5 days prior to each scheduled PTO meeting. This will enable each to be informed of preliminary agenda items, ask questions/receive clarification ahead of time, suggest other items to be discussed at the meeting and to be prepared for the meeting. (Sample agenda with standing items is included in the Appendix)

The president may designate the vice president to chair meetings in his/her absence. It is the responsibility of the PTO secretary to take minutes of each meeting, type the minutes and

email them to each officer, principal and assistant principal within 2 days after the meeting. The minutes will include information discussed and details of all decisions made. The minutes will be made available at the next meeting for a vote/approval. The principal will forward minutes to all staff to communicate meeting decisions/information to all. The library media specialist will post PTO minutes on school website.

For each PTO meeting, PTO will make a few copies of the agenda and minutes and have them available at each table for review prior to approval during the meeting.

A sign in sheet will be prepared for each meeting. The number of those present at the meeting will be included in the meeting minutes.

Two teacher representatives from each grade/team will attend each PTO meeting. The PTO president will inform the principal, staff, and parents if a meeting must be cancelled.

Consensus Decision MakingAll decisions must be discussed and approved during a PTO meeting. All motions and decisions made must be recorded in the minutes by the PTO secretary. PTO officers will follow consensus decision making procedures. Consensus is defined as group solidarity in sentiment and belief; general agreement; unanimity.

Steps to Develop Consensus:

1. The PTO will discuss each new issue during a PTO meeting. If needed, the PTO can charge a committee to gather more information about the topic at hand. The committee will be responsible for researching the issue, gathering input, and developing a formal proposal to present at the next scheduled PTO meeting.

2. If discussion reveals substantial concerns or unclear points in a proposal, the PTOs normal practice will be to return it to the committee for further work, taking up any subsequent committee recommendation as a new proposal when it is received.

Formal Decision by Consensus:1. The PTO president, or his/her designee, shall then ask if there is further discussion. When the PTO

president believes that discussion is complete, the PTO president shall ask if there is a motion to approve. If a motion is made, the PTO president shall ask if there is a second motion. Any PTO member may make a motion to approve a proposal. Any PTO member may make a second motion to approve a proposal.

2. PTO president calls for all in agreement. PTO members who support the motion shall indicate by word or other sign that they believe there is now a consensus.

3. PTO president then calls for any opposed. Any member who is not willing to support the motion is obligated to say so at this time. If no member states unwillingness to support, the PTO president shall direct the PTO secretary to record that consensus has been reached and the motion has passed.

Steps when Consensus Fails:1. When a motion for consensus fails, the PTO may continue to discuss the issue until two more motions

for consensus have been made and have failed.2. If two further motions on the same issue at the same meeting fail, the PTO president shall direct that a

committee bring to the next PTO meeting a new proposal on the issue.3. If the PTO takes up the issue and new proposal at a second meeting and is still unable to reach

consensus, the PTO shall decide the matter by majority vote.4. Majority is defined as fifty percent plus one more of voting members present at a meeting.

Fundraisers All fundraisers must be voted on and approved during a PTO meeting. The Fundraiser Request form

must then be completed and given to the principal. Once the principal approves the fundraiser, the form will be turned in to the Laurel County Board of Education for approval. Fundraisers may not begin until all approvals are complete.

Fundraisers must be publicized in advance including the purpose of fundraising and the intended use of profits.

Fundraisers must be monitored using the Fundraiser Worksheet form. Fundraisers may not involve door to door sales by students. Any game of chance is considered Charitable Gaming and requires a license and a separate bank

account for each activity. At the meeting to approve a fundraiser, determine a group/grade/person to chair the fundraiser. The

fundraiser committee will head up the fundraiser including communication to staff, students and parents, submitting morning announcements, completing paperwork, submitting needed information, presenting at meetings, etc. The fundraiser committee will complete a Fundraiser Activity Report for each fundraiser. The fundraiser report is to be presented and approved at the next monthly PTO meeting following the close of the fundraiser.

Please see the appendix for additional information about fundraising in the Redbook guidelines for external support/booster organizations.

Financial Guidelines

All PTO Officers must comply with KDE Redbook Accounting Procedures for Kentucky School Activity Funds procedures for external support/booster organizations.

It is the responsibility of the PTO treasurer to reconcile the bank statement monthly and to prepare the monthly financial report in a timely manner to be presented and approved at each monthly meeting. A copy of the reconciled bank statement is to be attached to each monthly financial report.

Two signatures are required on all checks. This is a best practice procedure to protect from question. The PTO must have its own tax exempt number and bank account and should receive mail at a

different address from the school. The address on the bank account cannot be the school’s address. The PTO has a locking cabinet in the school office to secure all PTO records, financial documents, etc.

All fundraiser money must be locked up at the school and never taken home by anyone. A minimum of two PTO officers are required when counting PTO money and making a deposit. Two

signatures are required to verify each deposit. This is best practice procedure to protect from question.

PTO orders must be made in the PTO name and cannot be made in the school name. Please see the appendix for additional financial procedures and the complete Redbook document with

forms.

SBDM Parent Member ElectionThe PTO is responsibility for conducting the SBDM Parent Member Election. The annual SBDM parent member election for the following year shall be held in May of the preceding school year on a date set by the PTO and principal. If only two parents are nominated to serve as SBDM parent council member, an election will not be held. The two parents nominated to serve on the council will be appointed as the parent members on the school council for the coming school year.

1. Nominations: Candidates shall be nominated for the office of parent member by a letter of nomination. The letter shall be signed either by a candidate nominating himself/herself, or by another parent. All letters of nomination shall be submitted to the PTO no later than three days prior to the scheduled election.

2. Sample Ballot: The PTO shall ask each person nominated to sign a letter of acceptance stating that he or she is willing to serve on the council if elected and that he or she meets the qualifications. All names of those nominated, willing, and eligible to serve shall then be listed alphabetically on a sample ballot form and distributed to all parents at the school no later than three days before the election.

3. Elections: A committee of parents shall oversee the election. Election of parent members shall be held at the school on the date selected by the PTO and principal. Elections will be held throughout the school day as well as during the PTO meeting held at the end of the day. Each parent shall be given a ballot listing the names as were found on the sample ballot and shall vote for the number of seats that are then vacant. The ballots shall be collected throughout the day in a ballot box. The PTO shall convene a meeting at the end of the school day and ballots are to be counted in the presence of the parents. Any person receiving a majority on this ballot shall serve as a council member in the coming year.

4. Procedure If a Majority Is Not Received: If fewer candidates receive a majority of votes than the number needed to fill the open seats, the person getting the smallest number of votes shall be removed from the ballot, and the parents shall vote again for the number of persons needed to fill the remaining vacancies. Any person receiving a majority of votes shall be deemed elected. This process of removing one name shall be repeated as often as necessary to elect candidates by majority to all open positions.

5. Procedure for Determining Majority: The PTO parent committee overseeing the election shall determine majority vote by counting the total number of votes cast during the election. Majority is determined as one greater than half the total number of votes cast. This number shall be announced to parents prior to the counting of the votes.

Adopted: 09-22-09 Revised and Approved by PTO: 05-01-13

Appendix

School Messenger Automated Parent Calling System Form

PTO Meeting Agenda Template

Sample Agenda/Minutes

SBDM Council Parent Election Instructions

PTO Officer Nomination Form

SBDM Council Parent Member Nomination Form

Redbook – KDE Accounting Procedures for External Support/Booster Organizations

Your Duty Under the Law: The Kentucky Open Records and Open Meetings Acts / Managing Government Records documents

School Messenger

Automated Parent Calling System

The School Messenger System will be used to make grade level/school wide announcements to parents to remind them of: PTO meetings/fundraisers; progress reports coming home; parent teacher conferences; school pictures; academic fairs; field trips; parent trainings; etc.

This form must be completed and submitted to Principal or Assistant Principal no later than 2 days prior to the date the calls are to be sent out.

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Date Form Submitted: ____________Grade(s) to receive message:______________________

Teachers/Group sending message:_________________________________________________

Date and time message is to begin: ________________________________________________

Date and time message is to end: ________________________________________________

Exact message to record: ________________________________________________________

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London Elementary PTO

Monthly MeetingMonday, August 31, 2009

PTO Officers: Jennifer Finley, President Joanna Forbes, SecretaryAngie Couch, Vice President Lynn Collins, Treasurer

Agenda Template : 1. Welcome

2. Discuss and approve agenda

3. Read and approve minutes from previous meeting(s)

4. Read and approve monthly financial report

5. Read and approve fundraiser report(s)

6. Old business (list each item below )a)b)c)

7. New business (list each item below)a)b)c)

8. Schedule next meeting; adjourn meeting

London Elementary PTO

Monthly MeetingMonday, September 15, 2009

PTO Officers: Jennifer Finley, President Joanna Forbes, SecretaryAngie Couch, Vice President Lynn Collins, Treasurer

Sample Agenda/Minutes: 1. Welcome - Jennifer Finley, president, called the monthly meeting to order, introduced 2009 – 2010

PTO officers, and began a sign in sheet for those present. Those present included all 4 officers, 15 teachers and 8 parents.

2. Discuss and approve agenda – Jennifer Finley, president, reviewed agenda. Cindy Moore, parent made a motion to approve agenda; Michelle Jones, teacher seconded the motion. The August PTO meeting agenda was approved.

3. Read and approve minutes from previous meetings – Joanna Forbes, PTO secretary, presented and reviewed minutes from May 10, 2009 PTO meeting. Sonya McClure, parent, made a motion to approve the May 10, 2009 meeting minutes; Sandra Goodin, teacher, seconded the motion. The May 10, 2009 PTO meeting minutes were approved.

4. Read and approve monthly financial report – Lynn Collins, PTO treasurer, presented and reviewed the August 2009 financial report. Rose Abbott, parent, made a motion to approve the August 2009 financial report; Eva Clark, parent, seconded the motion. The August 2009 monthly financial report was approved.

5. Read and approve fundraiser report(s) – , vice president, presented and reviewed the cookie dough fundraiser report. The fundraiser profit was $432.59 to be used for student attendance prizes at the end of the year. PTO members were very pleased with the support from parents and staff of this fundraiser.

6. Old business – Teachers were asked at last month’s meeting to research and present suggestions for fundraisers: 5th grade teachers suggested a cookbook fundraiser and presented information from the American Cookbook Fundraising Company – can be completed online and profits are $5 per cookbook sold. After discussion, Bob Jones, parent, made a motion to approve the Cookbook fundraiser; Cindy Madden, teacher, seconded the motion. The Cookbook fundraiser was approved to begin in early January. A fundraiser information sheet will be copied and sent home with parents and staff in November. 5th grade teachers will chair this fundraiser.

7. New businessa) Book Fair Fundraiser - Approval for book fair for the end of October. Melissa Campbell, parent, made a motion to approve date for book fair; Renea Walker, parent, seconded the motion. The book fair date of October 17 – 22 was approved. b)  Sweethearts Dance Fundraisers - 1st grade teachers presented ideas about a Sweethearts Dance: sell glow in dark necklaces, pizza, popcorn, pop, classroom voted king and queen and then school wide vote the week before with boxes in the foyer, February 13 from 6:00 – 8:00 in the gym; purpose of fundraiser is to raise money to go towards a new school sign. Sharon House, parent, made a motion to approve the Sweethearts Dance; Rhonda Roach, teacher, seconded the motion. The Sweethearts Dance was approved.

c) Fall Festival Fundraiser – 3rd grade teachers presented idea of doing a Fall Festival instead of the fall dance this year. PTO members were asked to check with other schools and bring ideas to next meeting to plan Fall Festival. d) Box tops and Campbell soup labels fundraiser – Angie Couch, vice president, presented information about Box Tops and Campbell’s soup labels fundraisers. Determined purpose for these fundraisers is staff appreciation prizes/dinner. Teresa Conway, parent, made a motion to approve the Box Tops and Campbell’s Soup Labels fundraisers; Kendra Blair, teacher, seconded the motion. The Box Tops and Campbell’s Soup Labels fundraisers were approved. Angie Couch, vice president, will prepare a parent information sheet to go home with students this Friday.

8. Schedule next meeting; adjourn meeting – Next meeting will be October 4 at 3:30 in the library. Melissa Campbell, parent, made a motion to adjourn the monthly meeting; Dan Lewis, parent, seconded the motion. The monthly meeting of the London Elementary PTO was adjourned.

SBDM Council Parent Member Election Instructions

1. Give parent/guardian the information sheet about each parent nominee. Allow them time to read if they need to prior to voting. (The information was sent home with students so they may be ready to vote when they arrive.)

2. They must have a child enrolled to attend London Elementary in August in order to vote. Parents of current 5th grade students cannot vote. Parents of newly enrolled kindergarten students may vote in the election. Check the emergency card to verify the parent/guardian’s name. If their name is not listed as the parent/guardian for that child, have them go to the office. Do not allow anyone to vote who is not listed on the student’s emergency card or enrollment form unless they are approved by office personnel as the guardian of that child.

3. If the parent is approved as a guardian, have them sign and complete the signature page.4. If they have more than one child attending London School, they only sign their name one

time. Both parents may each vote. All parents may vote only one time. The number of signatures must match the number of votes that are cast in the election.

5. Once you have verified they are the parent/guardian of a student enrolled at London and they have signed their name, give the parent/guardian one ballot and a pen.

6. Remind them to vote for two nominees. Their ballot will not count unless they vote for two nominees. Be sure they place their ballot in the box.

7. You must supervise the voting at all times. If you need to step away for anything, please ask Charlotte to get someone to watch the ballot box. We cannot leave the voting area unattended at any time.

8. The parent voting in the foyer will close at 3:30 and move to the library for the PTO meeting.

9. Do not open the ballot box. At 3:30, give the ballot box, the signature page, and the blank ballots to a PTO officer to take to the PTO meeting.

10.If you run out of ballots, please ask Charlotte to make additional copies.

Once they have cast their ballot for the SBDM Council Parent Member Election, ask the parent to step to the other end of the table to vote for PTO Officer. Have them sign the PTO election signature page and then vote. Be sure these two ballots do not get mixed up. Thank you

Thank you for helping with the parent elections! We appreciate you very much!

London Elementary PTO Officer Nomination Form

The London Elementary PTO is seeking nominations for PTO officers for the 2011-2012 school year. If you are interested in volunteering as a PTO officer, please fill out the nomination form below and return this form to the school by Friday, April 29. The PTO election will be held on Thursday, May 5, at 3:30 in the library.

All PTO officer nominees must be a guardian of a child who will attend London Elementary during the 2011-2012 school year. Nominees must also have an approved crime check and complete confidentiality training.

Thank you for your support of the London Elementary PTO and for your willingness to volunteer.

PTO Officer Nomination Form_____Yes, I am interested in running for PTO Office. Name:_____________________________________

PTO Office (check one) :

_____President

_____Vice President

_____Secretary

_____Treasurer

I am the guardian of _______________________ who will attend London Elementary during the (students full name)

2011-2012 school year in the ______ grade. I accept this nomination to run for PTO office for

the 2011–2012 school year.

_____________________________________________ _______________________ signature phone number

London Elementary School

SBDM COUNCIL PARENT MEMBER NOMINATION FORM

London Elementary is seeking nominations for two parent members to serve on the SBDM Council for the 2011 – 2012 school year. Nominations will be accepted April 12 through April 29. If you are interested in being a part of the school council for the coming year, please complete the form below and return to the school during school hours April 12 through April 29. Thank you

Please tell us who you are and how we can reach you:Name:Address:

Phone:

Please check the box below that shows how you are related to a student: I am the parent of a child who attends this school. I am the stepparent of a child who attends this school. I am the foster parent of a child who attends this school. I have legal custody of a child who attends this school and that child lives with me.

Please identify your child or children:The name and grade of my child(ren) who attend London Elementary School are:

Please check all 3 boxes to be sure you are eligible for the council: I am not a member of the district school board or the spouse of a district school board

member. I am not an employee in the district administrative offices or their relative. I am not an employee of this school or a relative of an employee.*Relative shall mean father, mother, brother, sister, husband, wife, son, daughter, aunt, uncle, son-in-law, or daughter-in-law.

Please include on the back of this form one paragraph about yourself and why you want to serve on the school council. This information will be sent home to all parents to announce each candidate for council.

Signature _______________________________________________Date________________

Nominations will be accepted in the school office Tuesday, April 12 through Friday, April 29 during school hours. Nominations cannot be accepted after 3:30 p.m. on April 29. Thank you.

Accounting Procedures for Kentucky School Activity Funds “Redbook”

702 KAR 3:130

INTRODUCTIONThe Kentucky Department of Education (KDE) introduces the Accounting Procedures for Kentucky School Activity Funds (“Redbook”) as mandated and referenced in 702 KAR 3:130 (2) and KRS 156.070. It is incorporated by reference and becomes a part of the Kentucky Administrative Regulation (KAR) cited. The guidance presented in the “Redbook” will enable districts to provide necessary reporting of monies received and expended through a method of uniform accounting for school activity funds as required in 702 KAR 3:130 (3). After incorporating the guidance provided in the “Redbook” all schools will be able to present to the public an efficient system of accounting for all monies received and expended through school activity funds.

District compliance with the guidance provided in the “Redbook” must hold to its minimum standard, however districts through their local board of education may strengthen and add to any document(s) or procedure(s) that are within the scope of their authority and their responsibility of insuring an accurate accounting for all financial records, as well as insuring school activity funds are expended as intended. The system of safeguarding and accounting for school activity funds is dependent on the soundness and effectiveness of board of education policies and guidelines.

Why do schools have school activities? School activities are provided by the local board of education. The local board of education is obligated to provide its students with activity programs that are attractive, meaningful, worthwhile, and within the framework of the educational and organizational policies of the local board of education. Students will be enriched through a well-designed activity program, increased quality of the curriculum, new learning experiences, encouragement to be interested in classroom work, and strengthening morale and discipline with the opportunity to participate in the planning and execution of club activities as a life-preparation experience. Through student participation in school activities there may be fees collected and fundraisers held for their group to participate in selected activities producing a need to track what is done, thus the need for the Accounting Procedures for Kentucky School Activity Funds (“Redbook”).

EXTERNAL SUPPORT/BOOSTER ORGANIZATIONSExternal support/booster organizations are adult/parent organizations established to promote school programs or complement student groups or activities, (i.e., PTA, PTO, booster organizations, etc.). An external support/booster organization’s purpose may be to support a student group or program at a particular school or various student groups or programs at various schools. Even though an external support/booster organization works very closely with the district, it is a separate legal entity and is responsible for adherence to IRS guidelines and Title IX regulations.

General Guidelines

1) Created by the parents, external support/booster organizations provide support for school programs. Generally, fundraising efforts should be planned and carried out by the parents.

2) External support/booster organizations must receive local board approval to establish and lend support/seek assistance/fundraise in the name of the district or school or students or a district or school program.

3) An external support/booster organization must use external bank accounts and shall obtain its own Federal Employer Identification Number (FEIN) specifically and only for its use. External support/booster organizations shall not use the FEIN of the school or district.

4) An external support/booster organization is exempt from state sales tax on purchases only if it obtains its own state tax exempt number . External support/booster organizations shall not use the state tax exempt number of the school or district. Sales made by external support/booster organizations may be subject to the collection and remittance of sales tax.

5) An external support/booster organization is exempt from federal tax, and donations made to the organization are tax-deductible to donors, only if it obtains its own federal tax exempt status .

6) Each external support/booster organization should have written by-laws. The by-laws should define the offices and their terms.

7) Each external support/booster organization must submit the FEIN and the names of the organization’s officers to the principal at the beginning of the school year or within thirty days of the first transaction of the organization.

8) External support/booster organization officers are solely responsible for ensuring that their group is in compliance with district policies, external support/booster organization guidelines in the Redbook, and state and federal regulations. A district, including any district employee, cannot be held responsible for any deficiencies by the external support/booster organization.

9) District employees may serve external support/booster organizations as a general member or as a member of its executive board. However, local board members may only serve external support/booster organizations as a general member and shall not serve as an officer of the organization.

10) Neither local board members nor district employees shall serve external support/booster organizations as the treasurer or any other officer with check signing authority on the external support/booster organization’s bank account.

11) The school activity fund shall not reimburse external support/booster organizations for any purchases.

12) No booster club shall pay the fee for any referees or officials of athletic events. External support/booster organizations may, however, donate to the district/school for these purposes.

13) Booster clubs shall not pay or enhance salaries or stipends for any district employee. External support/booster organizations may, however, donate to the district/school for these purposes as long as the salaries paid are within the limits set by the local board.

14) Anything purchased by an external support/booster organization for the school, in the name of the school or for the athletic group they support, becomes the property of the school district. If the district accepts the item, then the district will be responsible for maintaining and repairing it.

15) The school or district, with approval of the local board of education, may establish additional guidelines/requirements for the external support/booster organizations.

16) The school may disassociate with any external support/booster organization that does not comply with the External Support/Booster Organization section in the Redbook. If the school disassociates with the external organization, the external organization shall not use the school name for their activities, conduct any fundraising in the name of the school or athletic group within the school and may not use the school facilities to conduct such activities.

17) Additional resources for external support/booster organizations can be found in Appendix C – External Support/Booster Organization Resources.

Insurance

1) Treasurers of external support/booster organizations should be bonded.

2) All external support/booster organizations are required to carry separate insurance for general liability with the appropriate coverage to operate their organization. External support/booster organizations are not covered by the district liability insurance.

3) Proof of liability insurance coverage must be submitted to the principal prior to commencing any fundraising activities.

Fundraising 1) The local board’s approval of all school-wide fundraisers proposed by external support/booster

organizations, including the use of funds, is required. The Fundraiser Approval (Form F-SA-2A) shall be completed and approved before the fundraiser begins.

2) The principal or a designee’s approval of all other fundraisers proposed by external support/booster organizations, including the use of funds, is required. The Fundraiser Approval (Form F-SA-2A) shall be completed and approved before the fundraiser begins.

3) The external support/booster organization must ensure funds are expended in accordance with only the purpose and intended use stated on the Fundraiser Approval (Form F-SA-2A). The Fundraiser Approval shall be obtained prior to commencing the fundraising activity.

4) External support/booster organization fundraising must benefit the members of the group as a whole; no fundraising monies shall be applied to individual student accounts. Accounting by student places the

external support/booster organization tax status in jeopardy as stated in Compliance Guide for 501(c)(3) Public Charities, Page 2 under heading Private Benefit and Inurement.

5) The IRS prohibits tax-exempt organizations from requiring participation in fundraisers. Likewise, support/booster organizations may not require an amount be “donated” in lieu of participating in a fundraiser.

6) Individuals choosing not to participate in a fundraiser cannot be excluded from benefitting from the fundraiser and cannot be penalized in any way.

7) District employees shall not be involved with an external support/booster organization by ordering or receiving goods, receipting, depositing funds, paying vendors or otherwise disbursing funds. External support/booster organization funds remaining on school property must be kept in a secure location which cannot be accessed by any school personnel.

8) Students may handle funds during a fundraiser conducted by an external support/booster organization.

9) If a fundraiser involves stations (carnival or fall festival, for example), tickets shall be sold at a central ticket booth. Patrons purchase tickets from the central ticket booth and remit a ticket at each station.

10) External support/booster organizations may provide financial support to student groups by donating funds to the school for expenditure or by expending the funds directly.

11) If the external support/booster organization donates funds to the school for expenditure, the external support/booster organization writes a check to the school where the student group is located. The school deposits the funds into the student group’s activity account, as long as the board has given the school authority to maintain donations at the school level. The funds then belong to the members of the student group, to be spent at their discretion (under the supervision of the sponsor). All accounting and safeguarding of the funds is the responsibility of the school, once the school has received the funds and all “Redbook” guidelines must be followed.

12) If the external support/booster organization expends the funds directly, the external support/booster organization writes checks to the individual vendors for the expenses related to the student group through the organization’s bank account. All accounting and safeguarding of the funds is the responsibility of the external support/booster organization.

Reporting

1) Each external support/booster organization must submit an annual External Support/Booster Organization Budget Worksheet (Form F-SA-4B) to the principal within the first thirty days of the school year or within thirty days of the first transaction of the group. The budget shall contain, at a minimum, estimated revenues from admissions, fundraisers, dues, concession sales, and other categories and estimated expenditures by category.

2) Each external support/booster organization must submit an annual financial report for the fiscal year ending June 30 to the principal by July 15. The annual financial report shall contain, at a minimum, cash beginning balance, cash ending balance, and revenues and expenditures by category. (i.e. admission revenues, concession revenues, items for resale, supplies).

Title IX

1) External support/booster organizations must ensure compliance with Title IX . Title IX of the Educational Amendments of 1972 is a federal law that prohibits sex discrimination in educational programs which receive federal funding. Since all public schools in Kentucky receive federal funding, Title IX applies to all programs in the public schools.

2) Benefits provided by boosters are viewed under Title IX as being provided by the school and the school’s administration is responsible for ensuring equity.

3) Expenditures made by external support/booster organizations must be reported to the principal annually by July 15.

Appendix C - External Support/Booster Organization Resources

Life Cycle of a Public Charity

The following excerpts were downloaded from the IRS website. The information documented below issubject to change by the IRS. Therefore, for the most up-to-date version of this information, please go towww.irs.gov/charities .

Organizations that meet the requirements of Internal Revenue Code section 501(c)(3) are exempt fromfederal income tax as charitable organizations. In addition, contributions made to charitable organizationsby individuals and corporations are deductible under Code section 170.

During its existence, a public charity has numerous interactions with the IRS – from filing an application for recognition of tax-exempt status, to filing the required annual information returns, to making changes in its mission and purpose. The IRS provides information, explanations, guides, forms and publications on all of these subjects – they are available through this IRS web site. The illustration below provides an easy-to-use way of linking to the documents most charities will need as they proceed though the phases of their “life cycle.”

The IRS web site includes examples of various documents found in the following sections.

Starting Out1) Organizing Documents

a) Required Provisions b) Sample Organizing Documents c) Governance and related topics

2) Bylaws

State law requirements

3) Employer Identification Number a) Application Form b) Online EIN Application

4) Charitable Solicitation a) Initial State Registration b) Periodic State Reporting c) State Charity Offices

5) Help from the IRS

Applying to IRS1) Requirements for Exemption

2) Application Forms

3) Exemption Application

4) Group exemption

5) User Fee

6) Power of Attorney

7) Disclosure of Applications

8) IRS Processing a) While You Wait b) Rulings and Determination Letters

9) Help from the IRS a) Application Process Step by Step b) Customer Account Services c) Publication 4220, Applying for 501(c)(3) Tax-Exempt Statusd) Publication 557, Tax-Exempt Status for Your Organization

Required Filings1) Annual Exempt Organization Return

Requirements for Filing

2) e-File for Exempt Organizations e-Postcard for Small Exempt Organizations

3) Unrelated Business Income Tax a) Requirements for Filing

i. Form 990-T ii. Form 990-T instructions

iii. Form 990-W iv. Estimated Tax

b) Exceptions and Exclusions c) Publication 598, Tax on Unrelated Business Income for Exempt Organizations

4) Help from the IRS a) Customer Account Services b) Publication 4221-PC , Compliance Guide for 501(c)(3) Public Charitiesc) Publication 557 , Tax-Exempt Status for Your Organization

Ongoing Compliance1) Jeopardizing Exemption

a) Inurement/Private Benefit b) Intermediate Sanctions c) Lobbying/Political Activity d) Not Filing Annual Return or Notice

2) Employment Taxes a) Requirement to Pay b) Exceptions and Exclusions c) Worker Classification d) Forms and Publications

3) Retirement Plan Compliance 4) Substantiation and Disclosure

Charitable Contributionsa) Publication 1771, Charitable Contributions Substantiation and Disclosure

Requirementsb) Written acknowledgments c) Quid pro quo contributions d) Charity auctions

5) Noncash Contributions a) Donor ( Form 8283)b) Donee ( Form 8282)c) Publication 561 , Determining the Value of Donated Property

6) Public Disclosure Requirements

7) Help from the IRS a) Customer Account Services b) Publication 4221-PC , Compliance Guide for 501(c)(3) Public Charitiesc) Publication 557 , Tax-Exempt Status for Your Organization

Significant Events1) Reporting Changes to IRS

2) Private Letter Rulings and Determination Letters

3) Audits of Exempt Organizations a) Potential Examination Consequences b) Examination Procedures c) Power of Attorney

4) Termination of an Exempt Organization

5) Help from the IRS

Record Retention

Booster Clubs should establish a record file that is passed to the new officers each year. Some items need to be kept indefinitely while other items only need to be kept for a certain length of time. The record file should contain at least the following items on a permanent basis:

Permanent Record1) Internal Records

a) Booster Club Registration & Approval Formb) Articles of Incorporation/Articles of Associationc) Bylaws/Charter/Constitutiond) Minutes from meetings

2) State Recordsa) Sales Tax Permit Applicationb) Sales Tax Permitc) Certificate of Incorporation from State of Kentucky (if applicable)d) State Sales Tax Exemption Notificatione) State Franchise Tax Exemption Notification (if incorporated)

Federal Records1) Copy of IRS Form SS-4, Application for Employer Identification Number

2) Copy of IRS Form 1023, Application for Recognition of Exemption, with all attachments

3) Copy of IRS Form 8718, User Fee for Exempt Organization

4) Determination Letter Request, and copy of check sent to IRS with this form

5) Acknowledgement of Your Request

6) Determination Letter

7) Copy of IRS Form 8734, Support Schedule for Advance Ruling Period

8) IRS’s notice granting a permanent exempt status to the organization, if applicable

According to the IRS, Booster Clubs must keep each annual information return (i.e., Form 990,Form 990-EZ, or Form 990-N) for 3 years from the date the form is required to be filed or from the date the form is actually filed, whichever is later. However, if fraud is suspected or if returns have not been filed as applicable, the IRS could request information prior to the 3-year period discussed above.

Non-permanent Records1) Internal Records

a) Financial Reports and Review Committee Reportsb) All financial backup including checkbook and banks recordsc) Information related to contributions received by a Booster Club from individuals or businessesd) Financial Aid Guidelines

2) State Recordsa) Sales Tax Forms Filedb) Copy of correspondence with the Kentucky Department of Revenue

3) Federal Recordsa) Copy of IRS Forms 990, 990-EZ, or 990-N filedb) Copy of correspondence with the IRS

Before discarding any records, confirm with the Kentucky Department of Revenue and the IRS that your organization is in good-standing and that there are no open items or issues.