Handout

(May be copied for all interested parties)

Parent Organizations and Booster Clubs Procedures

The following items must be present in an organization’s Bylaws and Practices for a parent entity to be recognized by the school.  The organization is also liable to State and Federal agencies regarding requirements of fundraising organizations, i.e., applications for organization status, reporting revenues, tax requirements, etc.

Bylaws

An organization of parents or community leaders affiliated with a school must develop a constitution and/or bylaws to be approved by the principal in writing and filed at the school site.  The document must contain or refer to the following:

  1. The name of the organization.
  2. The objective of the organization including the statement, "This organization will abide by all School board and administrative policies and procedures."
  3. Eligibility for membership and membership enrollment procedures.
  4. Officer selection, election procedures, and duties of each officer.
  5. Bonding documents for signatures from licensed insurance company within 30 days of receiving $2,500.
  6. The principal or designee who will serve as an ex-officio officer of the organization.
  7. Specific fiscal auditing and accounting procedures established by each organization. The disbursements must require the signature of two persons designated by the membership in accordance with accepted practice.
  8. The Statement: "This organization (or club) will abide by all School Board and administrative policies and procedures." As relates to Parent Organizations and Booster Clubs.
  9. In the event that the organization dissolves or is dissolved by the principal, language indicating how the group will handle remaining funds must be included.

Practices

Though parent organizations are affiliated with the school in that they carry the school name and activities must be cleared with the principal or designee, they are a sole and separate entity.  Therefore, the following conditions apply:

  • Tax identification number obtained solely for your group.  Auxiliary group may not use the APS identification number, which legally applies solely to the District.
  • Tax exempt status is up to each group to determine, based upon its purpose.
  • APS employees (faculty, staff, sponsors, etc.) may not be involved in financial activities of the organization in any way.  They may not order items, make sales, collect monies, or sign checks.
  • Bank accounts must be maintained outside of the school.  Year-End June 30 financial statements must be presented to the principal by July 31 annually.
  • Financial statement ending each fiscal year June 30, presented by July 31 to the school principal and Finance Department Technical Assistant for Activity Funds.  Checks/disbursements must require two non-APS club member signatures of persons designated by the membership in accordance with accepted practice.
  • School mail permits are not for auxiliary group use.  As with the tax exempt number, organization/clubs are responsible for obtaining their own permits.
  • Raffles/Bingo events may be conducted by auxiliary groups, which are responsible for complying with State laws and licensing requirements when applicable (see references below).  These events must occur off campus, off-school hours, to remain outside of school jurisdiction and not interfere with the instructional day.  Final drawings may be held on campus if they are part of a school event, so long as no selling or gambling occurs.
  • Open meetings for club business, with adequate notification of all meetings to all members, and summaries of proceedings maintained with a copy on file in the principal’s office one week after the meeting.
  • Principal (Activity Director for High School) must give written approval for fund raisers, to ensure coordination with other school activities and fund raising events.
  • Fund raising activities or projects initiated by the organization/club on behalf of the school must be proposed in writing and be authorized by the school principal before the activity commences or any final arrangements are made.
  • Fees may only be charged for purposes incidental to the related school program, whereas school fees would cover items required to support the basic program.
  • Hiring contractors or employees to provide services to be paid by the auxiliary group are permitted once the proper employment status and payment method is determined.

REFERENCES

NM Dept. of Taxation & Revenue (Tax Inf. Office)..................................................................................................... 1-505-841-6200

NM State Regulation and Licensing Dept.................................................................................................................... 1-505-827-7000

Internal Revenue Service............................................................................................................................................ 1-800-829-3676

APS Instructional Procedural Directive:  “Parent Organization and Booster Clubs”................ Refer to APS Website for the directive


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