Section 08 - ASB Fundraising for Student Groups

ASB

FUNDRAISING

Compiled by the WASBO ASB Committee

Revised Edition - Reviewed by State Auditors Office May 2002

WHAT MAKES IT ASB??

It is an ASB event or fundraiser if:

Students are involved and

School district or School name is used and

It is conducted on or off school property and

It is done with the approval of the school board or their designees.

When all of the above are in place, funds raised must be deposited to the Associated Student Body Fund.

ASB’s are mandatory in grades 7 - 12 whenever students engage in money

raising activities with the approval and under the supervision of the district.

Each building must have a separate constitution. (WAC 392-138-011)

ASB’s are not mandatory in grades K - 6 but any money raised with the

approval and under the supervision of the district must be administered in the

same manner as ASB money. (WAC 392-138-011)

The school board has authority over ASB’s and ASB’s are subject to the same

laws as the school district including accounting procedures, budgets and

warrants. [RCW 28A.325.120] (WAC 392-138-013)

Privately students are still able to raise money as members of other

organizations (scouting, church, etc.) but this activity cannot be done by

an ASB or with school approval or district supervision on school time.

Students may not use a school team or club name nor suggest representation

verbally nor wear a school uniform during personal or private fundraising.

(WAC 391-138-015)

Exception: See Private Money on charitable fundraising.

Booster/Volunteer Funds can be donated to support school activities:

These are moneys raised by volunteer organizations that support school organizations but operate independently of the school district. These organizations include PTSA and other parent-faculty clubs, special interest parent groups and booster clubs. These organizations should register with the state of Washington and operate as non-profit organizations.

MONEY MANAGEMENT

Money problems may arise due to a lack of proper record keeping and/or adult supervision of the fundraiser; these will not be pleasant for anyone involved in the sale. Avoid these problems by following these guidelines:

· Work closely with the school bookkeeper and Activity Coordinator; their knowledge

is of great value to you

· Purchases may only be made with purchase orders or procurement cards

· Inform administrators of fundraising sale dates and of sale procedures you will use

· Set up a system for daily records of deposits and payments. Use an official district

receipt book or, if computerized receipting is used, set up a SKU with the ASB

bookkeeper to receipt sales. Audit your records periodically with the school

bookkeeper.

· Use individual cash count sheets attached to envelopes for student deposits; allow

enough time to verify each deposit in the student’s presence before the receipt is

written. Save the cash count sheets; they are part of your financial records.

· Deposit money DAILY. Use proper methods explained in the section on Cash

Handling (ASB Procedures Manual). After DAILY student deposits have been

collected, fill out the Fundraising Deposit form; deposit DAILY collections to the school bookkeeper.

Deposits can only be made through the school bookkeeper to the district

depository account. No personal bank accounts are allowed.

· Assign a single student to maintain all revenue records for your sale.

· Assign another student to maintain the sales records of each salesperson

(who has what; what has been sold; what has been returned). Use Merchandise Sales

Reports and Checkout Forms. (WASBO ASB Procedures Manual, Fundraising

Section)

If several fundraisers are conducted throughout the school year,

students should be rotated on the above duties as much as possible.

This is an example of good internal controls (separation of duties).

OBTAIN PARENTAL PERMISSION

The Parent Permission letter informs parents that their student is responsible for any and all goods checked out to them. When the fundraiser is complete, all unsold merchandise and money collected must be returned to the activity advisor for deposit with the ASB Bookkeeper. Advisors are to obtain parental permission before assigning goods to students to sell. This letter explains student liability and allows parents to approve or disapprove of their child’s participation.

QUESTIONS TO ASK

· Will the project be fun?

· Will it require outside help?

· Has this type of sale worked before? Could it with a different approach?

· Are we all behind the idea?

· Can we accomplish our goals with this fundraiser?

· Do we have funds available to purchase the sale merchandise?

· Is adequate budget capacity available for expenses?

· Will we have to request a loan from the student council?

After choosing a fundraiser, use the Fundraising Check List to help you organize. It is a step-by-step approach to selling a tangible item but can be helpful in planning any fundraiser.

SCHEDULE YOUR FUNDRAISER

· Check your school calendar. Be sure that you will not be in conflict with another event.

· Planning a fundraiser in conjunction with a holiday can be effective if the product sold is appropriate. Plan well in advance.

ADVERTISE YOUR FUNDRAISER!!!

FUNDRAISING FACTS

· Once items are issued to a student, that student becomes totally responsible for them.

· Losses due to spoilage or other damage become student responsibility.

· If merchandise or money is not returned to reconcile an individual student record sheet,

that student’s indebtedness will be added to the school fine list.

· All purchases must be made using the school district and school name, personal names

and addresses are not allowed.

· All funds collected must be deposited to the school district depository account via the school

ASB bookkeeper.

· It is illegal for ASB money to be deposited to a personal bank account. This is public

money and must be treated as such.

· Independent sales consultants may not use schools as a source of sales. These are consultants

who offer schools a small portion of the sale profit by selling to students and parents through an ASB club. Some of these independent consultants are Pampered Chef,

Mary Kay Cosmetics, Avon, and Tupperware. Many times these consultants are personal friends, spouses or school district employees; this is considered a conflict of interest.

· Money raised that is ASB public money may only be spent for Cultural, Athletic,

Recreational and Social purposes (CARS); nongraded, optional and extracurricular.

· Money raised for a charitable purpose as private money must follow specific procedures (see Private Money).

WEST VALLEY SCHOOL DISTRICT

Fundraising Checklist

Prior to Event

Decide how the anticipated proceeds will be spent and indicate that in the club minutes.

Decide who will handle the money and sign contracts (school group, booster group, parent organization). This will help determine sponsorship.

If it is a WVSD event, complete the Fundraising Request Form.

Give form to ASB Advisor, ASB Vice President or Senatorial Secretary prior to the next scheduled Senate meeting for approval BEFORE starting fundraiser.

Get signatures: ASB Advisor, club/team advisor/coach, club/team officer/leader.

Return copy of signed request form to coach/advisor in charge of activity. After approval, place the form in the club notebook attached to the minutes from that meeting.

Original form will be kept on file with the ASB Advisor.

After approval, student leader/advisor/coach obtains the necessary forms to carry out the fundraiser (i.e. parent permission to sell, fundraiser check-out form, etc.).

Advisor/student leader obtains necessary forms associated with the activity. Forms are located in the main office with the ASB Bookkeeper or in the ASB Advisor’s classroom.

Purchase Order Request form. Please allow up to 48 hours for processing – plan ahead!

Parent/Guardian notification form

If items are for resale, fill out the Resale Certification form so group doesn’t pay tax on items.

Determine from vendor in writing if unused/unsold merchandise may be returned for a credit.

Parent/Guardian notification form completed and returned to club/team advisor/coach PRIOR to student participation in fundraisers involving the sales of goods or services.

When merchandise arrives, make an immediate and accurate inventory and put in file.

During Event

Advisor is responsible for following WVSD procedures regarding: fundraising, cash receipting, documentation of transactions, inventory control, safeguarding assets, tickets, reconciliation, etc.

(See ASB Manual, Section V, Fundraising Guidelines)

ASB Manuals are kept on file with the ASB Advisor and ASB bookkeeper.

MONEY MUST BE TRANSFERRED TO THE OFFICE BY 1 PM THE SAME DAY THAT STUDENTS BRING IT TO SCHOOL.

Use of non-instructional time is encouraged for fundraising promotion and management. When practical, these activities should take place before and after school and during lunchtime. Appropriate instructional time should be limited to club activity periods.

After Event – Reconciling

Advisor/Coach and club/team officers/leaders complete the fundraiser by ensuring that the following forms/documents are contained in the fundraiser file.*

Club minutes indicating the group/club’s approval of fundraiser.

Fund Raiser Request form.

Purchase Order completed

Vendor receipt(s)

Inventory, Parent/Guardian Permission form, Resale Certificate, etc.

Inventory credit receipt (if applicable)

Complete Reconciliation form.

*Failure to do this within 2 weeks of the ending date of the fundraiser may result in the club/team not being approved for further fundraisers until it is completed

RESTRICTIONS AND PITFALLS

Occasionally fundraisers may be a ‘little out of the ordinary’ and require additional research before a club can begin. Usually, personnel in the ASB Activities Office can help you with questions and concerns; please ask them if you are in doubt about any aspect of your sale.

Be sure to receive authorized permission before beginning.

LEGAL: Fundraisers must meet fire, health and licensing regulations.

TAXES: Non-profit groups may be exempt from income taxes, but liable

for sales taxes, amusement taxes, or other levies on their proceeds. RCW 82.04.3261 exempts limited ASB fundraisers from paying sales tax on fundraising merchandise (continuous fundraisers do not qualify). A resale certificate must be provided to the vendor; this is to be done either when ordering or when payment is made.

INSURANCE: Special liability insurance may be required in the event property or people could be endangered by a fundraising activity. Consult the school district business office.

CONTRACTS: Staff members are not to sign any contracts with sales representatives. An Administrator must sign contracts. School districts have a Goods and Services Consultants Contract, which is appropriate for most service agreements with persons who are self-employed. All tax information is required prior to payment from Accounts Payable (tax ID number or social security number; business name; phone number; business address; person operating the business, etc.) Time may be saved by faxing forms to contractors and reminding them to fill in all portions of the form. If in doubt, call district purchasing or accounting office for the form and proper procedures to follow.

THEFT: This can be a threat to any fundraiser. Keep goods and money in locked areas. Turn in money daily. Do not allow students to take cash boxes out of supervised areas. Whenever possible, receipt sales through the point of sale system; distribute merchandise when proof of payment is shown.

GAMBLING - BINGO, RAFFLES, CARNIVALS

ASB’s may conduct bingo, raffles and carnivals as fundraisers without applying for a permit from the State Gambling Commission provided they follow these guidelines:

1. Each ASB may conduct no more than two gambling events each calendar year (January 1 - December 31).

2. Each gambling event may last no more than 12 consecutive days, except for raffles, which may last longer.

3. Total gross revenue for all gambling events of a school ASB may not exceed $5,000 during each calendar year. If $5000 is reached during the event, sales must cease immediately!

4. Only members of ASB may participate in management of the event. School advisory staff may help, but parents and PTA members are excluded. Only members of ASB may sell the raffle tickets.

5. Tickets may only be sold to persons 18 years of age and older. Prizes may only be awarded to persons 18 and older.

6. Records of each event must be kept for at least three years after the event. Records must include:

a. Gross revenue

b. Details of expenses related to the activity

c. Details of the use of profits from the activity

7. Raffle tickets may have a maximum price of $25.00. There cannot be any discounts for quantity of tickets purchased nor complimentary tickets given away. (Example: $2 each or 3 tickets for $5, all tickets must sell for the same price.)

8. The following information must be printed on all raffle tickets:

a. District and school name

b. Date, time and place of drawing

c. Tickets must be consecutively numbered

d. If you must be present to win, the ticket must so state

e. Prize(s) to be awarded

9. The local police agency must be notified of the event at least 5 days before the event.

If any of the above items 1 through 3 are anticipated to be exceeded, a lengthy application process must be initiated with the Washington State Gambling Commission prior to the event. Allow adequate time for processing of the application.

$$$ PRIVATE MONEY

Expending ASB money for charitable donation, scholarship and student exchange can only be made from legitimate ASB private moneys.

Effective June 8, 2000, RCW 28A.325.030 was amended to permit student groups, in their private capacities, to conduct fundraising activities, including the solicitation of donations, to fund scholarships and student exchange programs, to assist families whose homes have been

destroyed and to fund community projects. Under certain criteria this money is considered to be non-associated student body funds and is not public money (section 7, article VIII of the WA State Constitution). However, if conditions are not adhered to, money collected will become ASB public money and may not be used for the

above purposes. (See WASBO ASB Procedures Manual, Private Money Section.)

· School board policy must be in place, which permits fundraising for charitable activities

· Verify that the proposed beneficiary is a legitimate charitable organization or cause.

· Student council must give its prior approval for collection and expenditure of private money. Additionally, an administrator must approve the fundraiser in writing. It is suggested that this be done on an ASB Fundraiser form so that administrator and student approval signatures and any other information is documented as to the type of fundraiser, the intended beneficiary and start/stop dates of the event.

· Contact the district central business office prior to any collections for guidance in following required district policies and internal control procedures.

· Before beginning any private money fundraiser, public notice must be given to identify the intended use of the proceeds (be specific), that collections are exclusively for that purpose and that they will be held in trust by the school district until disbursed.

· All publicity must state the above information.

· ASB private money must be held in an expendable trust account within the ASB program or in ASB accounts in the 6(000) series.

· Documentation for receipt of any donations is essential. Follow district procedure regarding cash receipting, depositing, record keeping, inventory control and final reconciliation.

· Approval for payment of the proceeds must be in writing. Attach a copy to each purchase order requisition or voucher as backup documentation for payments made through the accounts payable process.

· Charitable fundraising is a private activity; school district funds may not be used to offset, front-fund or pre-pay expenses including start-up costs. The district is to be compensated for any direct costs associated with the fundraiser.

· Transfer of funds to or from a private money account in the 6(000) series is not allowed.

Note: Check with the primary ASB director for approval of all private money fundraising.

WASHINGTON STATE BENEFITS TO ASB

Washington State allows Associated Student Bodies to pay sales tax when product is purchased even if it is for resale. Items purchased for time limited fundraising events are exempt from sales tax per RCW 82.04.3261. (On-going fundraisers do not qualify.) Sales tax need not be collected when items are resold; however, freight or special mailing costs should be considered when setting sale prices of products. Sales tax is not required for food items.

Letter of October 2, 1987, State of WA Department of Revenue states in part “...school organizations will satisfy sales tax requirements if they pay retail sales tax to their suppliers when they purchase items for fundraising purposes. If ...the supplier refuses to collect the sales tax, the fundraising organization must pay a compensating use tax directly to the Dept. of Revenue.”

If purchasing from an out-of-state vendor who does not charge sales tax on their invoice, school districts are obligated to pay a ‘compensatory tax’ to the State of Washington based upon local sales tax rates. Compensatory tax will be charged to your account by accounts payable when the invoice is paid. If an order is for a fundraiser, specify FUNDRAISER on both the purchase order and invoice so that compensatory tax will not be charged.

According to House Bill 1279, amending RCW 82.08.02535, ASB’s are not required to pay sales tax or compensatory tax on magazine fundraisers. And further:

A letter dated March 15, 1989, from the State of Washington Department of Revenue states “...In the case of magazine subscriptions, ...they are acting as agents ...and are paid a commission. ...The school is not responsible for remitting any sales or use tax due to the state.”)

Conditional charitable fundraising is now allowed by the state legislature,

RCW 28A.325.030, (see Private Money, page 16-17).

Fundraisers such as school stores are not allowed to compete with

district food service programs. School stores located in cafeterias

are not allowed to sell lunch type items during school lunch.

Washington State Department of Revenue allows non-continuous fundraisers to

be tax exempt to non-profit organizations. Yearbook sales may qualify if they

meet the criteria: not continuous, ordered by ASB, only contracting for binding

of a camera-ready book.

FOR FUNDRAISING FORMS, TALK WITH YOUR BUILDING ACTIVITY DIRECTOR. WVHS FORMS CAN BE ACCESSED ON THE SCHOOL’S WEBSITE