NONPROFIT NEWS
News Home » Category » Fundraising
Share on Twitter Share on Facebook Share on LinkedIn 


Parent Booster USA Is Providing New Guidance On The Use Of Individual Fundraising Accounts


  Posted in Fundraising on May 30, 2011    0 Comments 
Parent Booster USA Is Providing New Guidance On The Use Of Individual Fundraising Accounts
Parent Booster USA has revised its IFA (individual fundraising account) policy and guidance for school booster clubs. The new policy strongly urges booster clubs to eliminate or significantly limit activities aimed at aiding individuals raise funds to cover their personal expenses.

It is common practice for school support organizations – band and other music boosters, sports boosters, and similar organizations – to credit their volunteers for working concession stands or for part of the proceeds earned from other fundraisers. Booster clubs say its difficult, if not impossible, to get volunteers to help unless credit is given for their efforts. Many students cannot afford to go on band trips unless they are given the opportunity to raise the money needed to cover trip costs.

The IRS, however, has found that these types of cooperative fundraising programs violate IRS rules. Lois Lerner, Director of Exempt Organizations for the IRS, reportedly has said that any booster club that raises money to benefit an individual rather than the group as a whole is in violation of federal law and stands to lose its tax-exempt status.

“While the IRS appears to believe IFAs are illegal, the IRS has stopped short of issuing a strict rule prohibiting cooperative fundraising activities,” notes Sandra Englund, founder of Parent Booster USA, a national umbrella organization for PTOs and other school support groups. “Nevertheless, PBUSA felt it needed to issue a policy that informs booster clubs how risky cooperative fundraising programs are.”
More information and guidance regarding fundraising practices for school booster clubs is available on PBUSA’s website at www.parentbooster.org.


Tags: Nonprofit  Non-Profit  Not For Profit  
Image Credits: Wikipedia | Rick Dikeman
Submit A Comment


Categories
Fundraising
Government
Management
Legal
Marketing
Technology
Not For Profit
Careers
Volunteerism
Philanthropy
GOOD News
Resource Roundup

Archives
June 2013
April 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010




Copyright © 2010-2014 501connect.com