Our annual popcorn sale is nearly over, everyone just renewed their membership for another year, and your unit will start planning its 2009-2010 budget very soon. So, let’s talk about your unit’s money and stuff!
The money that your unit (pack, troop, crew, ship, post) accumulates is an asset of your chartered organization. You’re might be thinking, “Wait! Our Scouts worked their tails off earning that money. The organization can’t just say it’s theirs!”. You may not know that your unit is actually organized as a youth department of the chartered organization. In fact, all Scouting programs are owned and operated independently by community groups. That’s a fundamental aspect of the Boy Scouts of America: creating partnerships with community organizations so that they can deliver a Scouting program that helps them reach their goals. This partnership is built around the Annual Charter Agreement (you can view this document at: http://www.cpcbsa.org/downloads/forms/pdf/ch_charter_agreement.pdf). So, the executive officer of the chartered organization becomes the executive officer of your Scouting unit. This person appoints (or serves himself) a Chartered Organization Representative who is the “Scouting department head” for the organization; communication link and person to ensure charter agreement is being met. From here you can trace the chain-of-command through the Committee Chairman and Cubmaster/Scoutmaster/Advisor/Skipper, to the unit’s committee and other adult leaders.
This is all valuable information, but I haven’t answered your question: “How is the money our Scouts earn for Scouting owned by the Chartered Organization?”. By tracing the chain-of-command in your unit, and looking at the Annual Charter Agreement, you see that your Scouting unit is a part of your Chartered Organization. Just as a Rotary Club operates an InterAct Club, or a church operates its own youth group, or even a business owner franchises a McDonald’s…your Chartered Organization is the owner/operater of your unit, and your youth are in their Scouting program. The budget your unit uses, all its fundraising, and its expenditures should be regularly reviewed by the organization for approval. The money (and assets) are used for Scouting and support of the youth members, but it is an asset of the chartered organization.
So, what does that mean? It’s very important that all your unit’s assets are handled as assets of the organization, and not as if your unit is its own organization. Here’s a couple important items to consider:
- How is your bank account set-up? The account should be set-up using the tax exempt (or other tax ID) of your chartered organization. The account should be named in recognition of this. For example, Troop 2 at Green Acres Baptist Church should be set-up as follows: “Green Acres Baptist Church, Troop 2″. The account and checks need to have the chartered organization named on them. The physical address on all checks should be the address of the chartered organization. A leader’s name and address should never appear on checks or named on the account. It is also very important that an account or check never is represented as the BSA; for example, “Cub Scouts of America Pack 84″ is incorrect.
- Who are signatures on the bank account? First, and foremost, the executive officer (pastor, president, etc.) of your chartered organization should be listed as an authorized user for your accounts. This person should approve all other signatures on the account (or done through the chartered organization representative). It is strongly recommended that your account is set-up to require 2 signatures on all checks.
- What about vehicles and trailers? All vehicles and trailers that are primarily used for your Scouting program should be registered in the same way as your bank accounts, “Green Acres Baptist Church, Boy Scout Troop 2″. The address must be the chartered organization. Never register vehicles or trailers to an individual or to a personal address. Insurance should be handled accordingly.
- Who approves money being spent from our accounts? A yearly budget is set and approved by your committee and the chartered organization. Your Treasurer is charged with providing regular updates and recommendations on spending. Small purchases included in the budget (typically under $100) can be approved by the Treasurer. Larger purchases (above $100) or anything not budgeted should be approved by the Committee Chairman and Chartered Organization Representative.
- How many different bank accounts should a unit have? One account is sufficient. There should never be individual accounts for dens or patrols.
- How much of a balance should we carry from year-to-year? $0! Scouting is a nonprofit activity and there should be no surplus from year-to-year. BSA fundraising policies prohibit raising money for anything beyond budgeted items in the next 12 months; you may not fundraise if there is not a need. The only exception is for superactivities such as National Jamboree or Philmont.
- Should we provide debit cards for our leaders? There is no official policy regarding this, but it is strongly discouraged. The BSA recommends that all expenditures are handled through checks and petty cash; this ensures clear record keeping and accountability.
- “”Scout accounts are the correct procedure, right? The BSA does not provide specific guidance in any direction regarding “scout accounts”. Developing a “scout account” program should be a decision made by the unit committee and chartered organization. If you choose to use “scout accounts”, never lose sight of the fact that your fundraising program should be designed to provide quality program to 100% of your Scouts. Do not create a situation where there is disparity in the program that Scouts receive. Your fundraising should focus primarily on funding your unit’s yearly operation, not on money to be spent by a Scout on himself. If Scouts need assistance with uniforms, activities, or books, contact the district for funding from the United Way. In addition, “scout account” funds should not be transferred from one unit to another. If a Scout transfers, his funds should be moved back to the general fund; do not cut a check for personal use or another unit. The only exception should be if a boy moves from Cub Scouts to Boy Scouts, or Boy Scouts to Venturing, within the same organization (ie. from Pack 456 to Troop 456). However, this policy should be approved by the unit committee and chartered organization.
No matter your role in Scouting…parent, leader, chartered organization member…you should be aware of the way we raise money and how we handle it. Every penny in your unit’s treasury was hard-earned and must be held in the highest regard. The community has shown their support of Scouting by contributing, and you are a steward of these funds. By following these guidelines you will protect the funds, and good name of Scouting–and your chartered organization!
For additional information on the money of Scouting, I strongly suggest the “Funding Your Scouting Program” packet (http://www.scoutstuff.org/BSASupply/ItemDetail.aspx?cat=01RTL&ctgy=PRODUCTS&c2=AUDIO_VIDEO&c3=AV_LEADERS&c4=&lv=3&item=32037) which includes literature and a DVD, and is in stock at the Central Florida scout shops (it is only $1.99).
Thanks for listening and go use that hard-earned money for a great Scouting program!
Posted by halifaxbsa 