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State law prompts new district rule requiring booster clubs and PTOs to register and provide financial documentation
Summary
Committee reviewed a proposed administrative regulation (OS‑22) formalizing a new state law: booster clubs and parent support groups must register, file IRS Form 990 and Secretary of State public charities forms annually, maintain bylaws, and may be subject to background checks; the district stressed its limited authority to audit or remove officers.
Presenter (Presenter) told the Finance Committee the new administrative regulation formalizes recent state law requiring parent support groups and volunteer organizations to register with the school board and provide annual nonprofit filings.
Presenter summarized the requirement: organizations must demonstrate IRS Form 990 filings, maintain public charities registration with the Secretary of State, and keep bylaws and policies. "If they are not active with the secretary of state's office...for 3 consecutive years, they can have their nonprofit status revoked, and they are not allowed at that time to fundraise," the Presenter said.
Committee members asked what enforcement authority the district has. Presenter and legal counsel said the district’s authority is limited: the state attorney general or the Secretary of State handles nonprofit compliance; law enforcement handles criminal matters. The board can, however, control use of facilities and the district’s name and logo, and the AR includes a provision that the board may request criminal records for an officer suspected of financial crimes.
Members asked how the district will notify PTOs and booster clubs and requested outreach and training; the Presenter said the district intends to communicate through principals, schedule educational sessions (the secretary of state's public charities deputy had been scheduled but was delayed by the hurricane), and provide resources and assistance to help groups comply.
Board members also sought clarification on differences among PTOs, booster clubs and school improvement councils (SICs). Presenter said SICs do not handle money and are not subject to the same registration requirements; PTOs and booster clubs are outside organizations responsible for their own accounts and may not have district staff serve as financial officers.
No formal enforcement action was taken; staff will follow up with outreach to support organizations and present the AR language to the full board so the public and all board members are informed.
