You are not logged in. Premium subscribtions just got sweeter with a much anticipated feature – sending emails to Scout Manager distribution lists from external email clients such as Outlook, Gmail, etc. “That caused us to take a fresh look at the history of the IRS’s positions on nonprofits” and carefully inspect and update the BSA’s guidelines, McGowan says.
If the unit uses popcorn money to buy new tents, that’s fine.
Private benefit is when funds raised in the name of Scouting or another charity are directly allocated to the youth member or family doing the fundraising. Anti-spam. Click to share on Facebook (Opens in new window), Click to share on Twitter (Opens in new window), Click to share on Pinterest (Opens in new window), Click to share on Tumblr (Opens in new window), Click to email this to a friend (Opens in new window). How is an “insubstantial” benefit defined? McGowan shares with CubCast listeners an explanation about Scouts transferring from unit to unit. These are set out in Appendix 1 of the Factsheet Accounting & Audit Requirements for Group, Districts, Counties/Areas & Scottish Regions (LT103950) and relate to the External Examination of accounts. Can Scouting units use funds to assist youth members who have a financial need? “That won’t work. Free options for California. Assign leaders, awards coordinators, treasurers and more.
A recent Bryan on Scouting blog post attempting to clarify the issue of individual Scout accounts drew more than 50 comments from readers, many of them sharply disagreeing about the value of the accounts and the precise way to interpret Internal Revenue Service regulations governing them. Funds raised can be used to pay fees, activity costs, and other related expenses such as supplies used and needed to carry out the activities and programs. It’s the obligation of parents to support their children.”. Progress reports let you know who's advancing or not. Leaders, Money Earning.
If they use it as a means to pay down the cost for the unit and each member to go to summer camp, nothing wrong with that. Pick any package and upgrade at any time on a prorated basis. Part of the University of California. Are individual Scout accounts permitted? A scout account for the boy is just that; it is a troop controlled bank account designated for “him” and with restrictions on its use to actual scout costs, such as camping and such. Requirements and award management, progress reports and ScoutBook integration allows you easily keep your scout records up to date. Our accounting package enables you to manage your finances, accept online payments and manage scout accounts. Are there penalties for private benefit or other tax issues? Allocating funds raised in the name of Scouting directly to a youth member could result in self-employment tax liability.
“Is it reasonable for a Scout to earn his way to camp?” McGowan asks. The entire troop can be provided with equipment through fundraising, but not if it’s at the discretion of a single person.”. Below are frequently asked questions provided by National BSA Legal Counsel regarding Individual Scout Accounts and the applicable IRS fundraising policies for non-profit organizations. What happens to the money raised when a Cub Scout becomes a Boy Scout, for example?
Michael Freeman, an Eagle Scout, is associate editor of Boys’ Life, Scouting and Eagles’ Call magazines. Some commenters on the Scouting blog note that most Scouts would never earn enough in a single year to owe taxes anyway.
Scout accounts, fund-based accounting and online payments.
The IRS has classified 30 percent of the money raised as “substantial,” and less than 2 percent as “insubstantial.” The burden of proof that the benefit is “insubstantial” is on the organization. There’s no IRS “crackdown” on the use of individual Scout accounts or any reason to think they’re a high priority for the agency. Money can be raised for the benefit of a unit, but individuals can’t gain what the IRS calls “a substantial private benefit” while enjoying those tax-exempt benefits.