Re: Fund Raising and Scout Accounts
jhs8@OKSTATE.EDU
Thu, 29 Jul 1999 17:22:33 -0500
Peter,
I asked a local IRS friend (who's also a scouter) this question a few weeks ago.
He suggested that proceeds should not be allocated to a specific scout but to
specific activities and that if any division is based on an individual's level
of participation, it becomes an employment relationship and the unit is
potentially liable for FICA, Medicare, etc. Plus the paperwork. A while back,
there was discussion of reporting using Form-1099. Then the question is whether
the scout is an employee or a contractor.
One of my old scout units asked each scout to put at least four hours into a
fundraiser. We raised enough money to cover half the cost of summer camp for
everyone in the troop. Anyone that went to camp went for half fee. If you
didn't go to camp, you didn't get anything. The excess was used for other troop
expenses as needed.
He added that he knows that lots of units have scout accounts but they aren't
legal in the eyes of the IRS. He expects that someday there will be a test
case.
jim sleezer
Murphy Peter <MurphyP@TCE.COM> on 07/29/99 11:47:36 AM
Please respond to Murphy Peter <MurphyP@TCE.COM>
To: SCOUTS-L@LISTSERV.TCU.EDU
cc: (bcc: Jim Sleezer/ia/regents/Okstate)
Subject: Fund Raising and Scout Accounts
I called the IRS Exempt Organization Division (toll free at 1-877-829-5500)
and asked about setting aside the proceeds from a fund raiser for Scouts to
use for campouts and trips.
I was told that exempt organizations can have a general fund raiser or
a fund raiser for a specific trip and the proceeds must go equally to the
entire group. If you set up individual accounts or reduce someone's
fees because they participated in the fund raiser, that's the same as
getting a job and isn't covered under the exempt organization.
Has anyone dealt with this problem?
Peter Murphy, SM T125
