To: Sanctioned Fund Raising Organizations
From: John Little, Chief Financial Officer
Subject: Procedures for Sanctioning
Board policy requires all parent organization and booster clubs to reapply for sanctioning annually for July/August approval.
Sanctioning applications are accepted throughout the school year. However, business may not be conducted within the organization until approval by the Board of Education.
Board policy requires each organization to acquire it’s own tax-exempt status by the Internal Revenue Service (501C3) during the first year of sanctioning. If this is not your first year to apply for sanctioning, you MUST provide your taxpayer ID # on the application as proof of tax-exempt status by the IRS. Without tax-exempt status, you will be required to pay sales tax on all your purchases and may be prohibited from receiving donations from companies who require documentation of 501C3 status for their “tax-deductible” contribution. Please consult a tax professional for advice on this matter.
Please read the revised board policy and procedures carefully as important changes have been made. The president, vice president, and treasurer of the organization will complete mandatory training every year or sanctioning will not be granted. Online training is available on this website. The quiz has been revised for the new fiscal year. It is important that we have current contact, preferably email, information on each officer.
If the organization chooses to pay taxes and does not get tax-exempt status, the organization must still acquire their own federal ID#. This is the number you would use to open a bank account. Do not use a person's social security number or the district ID #.
Complete and File IRS Form SS-4. This can be done via telephone (to receive your TIN immediately), by fax (to receive your TIN in approximately 4 days) or by mail (allow 4 to 5 weeks). Forms are available online at http://www.irs.gov. TheTele-TIN phone number is 1-800-829-4933. (The IRS suggests that you complete Form SS-4prior to calling so that you will have all the relevant information available.) The Fax-TIN phone number is 1-859-669-5760.
A copy of the board policy, procedures, and application are included on this webpage. Please keep the policy and procedures for your records and submit the 3 page application to Mika Barton in the Finance Office at the BEST Center. Bank statements are not required to be submitted unless specifically requested.
Checklist 1. Application which includes Financial page
2. By- Laws (if new or any amendments have been made)
3. Online Training Quiz
4. List of Donations Received >= $1,000 (see powerpoint)
5. Deliver all of the above to Mika Barton, BEST Center firstname.lastname@example.org