Business

• Activity Fund Account:
  • Funds are deposited in the school’s Activity fund
  • Purchasing is done through the purchase order process
  • The coach or sponsor would have access to a school district credit card for purchases
  • No booster club membership is required
  • Do not have to file with the Secretary of State
  • Do not have to file annual tax form
  • Can use the Petal School District Tax ID# for purchases
  • Fundraisers must be approved by the Superintendent
  • Coach or Sponsor is responsible for getting money to the school bookkeeper
• Small Booster Club:
  • Holds a meeting to establish membership
  • Elects officers
  • Has a Constitution and By Laws
  • Applies for their own Tax ID#
  • Opens a bank account in the booster club’s name
  • Files an Articles of Incorporation on the Secretary of State website ($50.00 fee)
  • Files a Charitable Notice Exemption on the Secretary of State website ($50.00 fee)
  • Required to hold two meetings annually with three board members present
  • Reports a financial statement and bank statement to the Activities Director quarterly
  • Must adhere to the School Board Policy for Booster Clubs
  • Fundraisers must be approved by the Superintendent
  • Fundraisers for Building projects must be School Board approved
• Large Booster Club:
  • Same requirements as Small Booster Clubs
  • Encouraged to file with the IRS for a 501 (C)(3) tax exemption status
    • means club or organization is a charity that can accept donations and write the donor a letter acknowledging the contribution is tax exempt with the IRS.
    • Booster Clubs with the 501 (C)(3) tax exemption status are required to file Form 990 with the IRS annually.

Fundraising Exemption Letter

1. Hold a meeting to establish membership and an election of officers. The officers should create bylaws and constitution.
   • A school district employee cannot be an officer.
2. Obtain a Tax ID # from the IRS. A Tax ID number is an identification number assigned by the IRS to an organization (Employer Identification Number (EIN)). A Tax ID can be obtained by applying on the IRS Select Charities – Apply for EIN online.
   • Requires a Social Security number to verify US Citizenship.
   • Download instructions here
3. File Articles of Incorporation with MS Secretary of State (Bylaws and Constitution)
   • $50.00 fee
4. File a “Charitable Notice Exemption” with the MS Secretary of State. This must be done before you can accept any donations. This is only for organizations that collect over $25,000.00 annually.
   • This is filed on the MS Secretary of State website.
5. Tax Exemption - If the organization wants to make tax exempt purchases, contact the MS Department of Revenue and ask for a Letter of Tax Ruling. Most resale purchase can be made tax free using the MS Dept. of Revenue Notice 72-13-007.
6. Once the Tax ID number is established, a bank account can be opened in the name of the Booster Club.
   • A school district employee cannot be on the bank account.
   • Booster Clubs are not allowed to use the Petal School District Tax ID# for any reason.
7. Two scheduled meetings must be held annually with three board members present. A financial statement must be reported at each meeting showing all income and expenses.
8. A Financial statement and a bank statement must be emailed to the Activities Director quarterly.
   • Activities Director – wendy.hogue@petalschools.com
9. The Booster Club must adhere to the school board policy concerning Booster Clubs and Fundraising.

Fundraising Request Form