Policy committee backs new booster-club rules requiring 501(c)(3) status and financial oversight

The Beloit School District Policy Committee voted Tuesday to recommend that the full board adopt a new policy for district booster clubs that would require groups to maintain IRS 501(c)(3) status and submit financial documentation to the district on a set timeline.

Policy committee chair Brian Nichols said the draft is intended to align booster-club practices with other districts and to put requirements on paper. "We have not had a policy in relationship to our booster clubs," Dr. Garrison said, explaining the district has pursued a written policy “to protect ourselves, as well as them.”

The draft policy presented by district staff member Mr. Gratz links district expectations to guidance from Parent Booster USA and would require booster clubs to be an IRS 501(c)(3) organization and to provide applicable documentation by July 1 if the policy takes effect. The draft also calls for a CPA, bank representative, or financial specialist to manage financial statements and tax filings and to provide documentation; it sets a compliance timeline (requesting up-to-date bank statements and the last 90 days of transaction history) and references existing district donation-reporting procedures.

Mr. Gratz described Parent Booster USA as "a nonprofit started by legal attorneys, skilled in nonprofit and tax law," and said many groups use that guidance. On recordkeeping and tax compliance he said, "In its simplest form, since we are in tax season, essentially, you would have a group do your taxes for you. We want to make sure we're maintaining compliance." Dr. Garrison told the committee he was propelled to act after reports of "lack of transparency around booster club finances" surfaced after his arrival.

The draft requires booster-club bylaws stipulate that remaining assets be issued to the supported group(s) should the booster club cease operations, and it refers to existing district policy on donations (policy 840) for donations over specified thresholds. Committee discussion revised language on financial oversight to read "CPA, bank, or financial specialist" rather than the broader phrase "certified financial specialist." Committee members also noted the district currently recognizes six operational booster clubs.

Committee members raised concerns about cost and practicality. Board member Tom Hankins cautioned that onerous requirements could be “counterproductive” for volunteer groups; the committee adjusted the wording to allow CPAs, banks or qualified financial specialists to fulfill the requirement. The draft also includes a 10-day window for initial compliance requests, and a request for recent bank statements covering the previous 90 days.

The committee moved to "recommend to the full board of education the addition of policy 881.1 District Booster Clubs waiving first reading and approving for final reading." The motion was seconded and approved by voice vote: aye, motion carried.

The committee also approved a separate, related housekeeping renumbering so the booster-club policy follows the WASB guide numbering (08/2001), and shifted what had been 881 for "relations with families/school organizations" to 881.2 to avoid numbering conflicts.

The full board will consider the recommended policy at its next meeting; the committee vote was limited to recommending adoption and does not itself change district policy.