Scout Accounts - Ideas on how to divvy up the profit

[janssenil 10]

Hi,

I posted this/similar topic under the Patrol Method forum, but realized it probably belongs here.

 

We're planning a big fundraiser from which we hope to earn a pretty good profit. We, also, plan to start up Scout accounts and want to come up with a fair and wise way to divvy up some of the profits to each scout. Do any of you have ideas or experience - what works and what doesn't? Any lessons learned? Do you have restrictions on how they can spend money in their accounts? Any forumula that your troop uses to determine how much each scout should receive?

 

We sure would appreciate your thoughts!

[Mike F 10]

I serve two troops. Neither puts much effort into fund-raising and they both divy up differently.

 

Troop 1.

Scout keeps 40-50% in personal "Scout Bucks" account, which is tracked by troop treasurer. This can be used to pay dues, recharter, summer camp, high-adventure, etc. In theory, a scout can use to funds to be reimbursed for purchase of uniforms, camping equipment, etc., but I don't think it's ever been done. If a scout leaves scouting, the Scout Bucks account is erased and the funds stay in troop account. If he is transferring to another troop and they have a similar account, we'll cut the other troop a check for his outstanding Scout Bucks balance. (I don't think this has ever been done, either. Just not enough $ in accounts to worry about it.)

 

Troop 1 has also run some special fund-raising activities for boys in high-adventure program where they were allowed to keep all profits and apply to upcoming expenses. This was worked to support several hardship cases, was approved by Troop Committee, and clearly explained to all.

 

Troop 2.

Scout keeps 100% of profits in personal account - troop gets nothing. I don't know the details of their program, but it doesn't sound like anything is written down. I'm working with them to change this. It caused a bit of confusion recently when new scout jumped on popcorn sales with gusto. (Note: I don't think this is a reasonable way to run program, but that's their choice.)

 

Personal thoughts:

- There's a lot of leeway in how you divvy up. Allowing scout to keep control of some portion is good way to encourage participation.

- Purpose for calling the accounts "Scout Bucks" is to emphasize that the actual green dollars belong to the troop, but they will allow the scout to use the credit for scouting-related expenses. If you didnt make this stipulation, scout (or parents) could demand cash to buy X-Box games, etc.

- Essential to put everything in writing and make sure every scout/parent knows exactly how the system works. If you want to allow different rules (percentages) for special fundraisers for activities (like High Adventure), then get that in writing, too. There will always be someone who argues about the fairness of some detail. Dont worry about it too much. Just write it down, publicize it, and apply it uniformly and fairly.

- As part of your start-up process, you might distribute draft plan to all families and give them a few weeks to provide comments. This might diffuse some of the potential for future disputes.

 

Good luck!

-mike

[EagleInKY 14]

I posted this same answer in a similar thread. We determine it on a case-by-case basis. If a fundraiser is more individual focused, as with a sales item, then the scouts get at least one-half, if not all of the profits. If it's a group activity, like a car wash, the troop gets it all.

 

One fundraiser we do that is totally behind the scenes is a grocery card. Several of our local grocery stores have these (Meijer, Kroger, etc.). The one we use is a pre-pay card (you can stop at the customer service counter when you enter the store and put money on it, and then use it when you check out). We get 5% of all sales. We give them to moms, dads, grandmas, aunts, uncles, etc. It generates about $100-$150 per month for the troop. Some troops give the proceeds back to the individuals. We've chosen to use this as a way to keep a steady cash flow into our unit account.

[Aquila calva 10]

Below is one example of a troop "activity fund policy." Important to remember that all the money belongs to the troop (and by extension it belongs to the chartering organization, the tax exempt entity). The Troop Committee acts as stewards of the funds and makes decisions on how it will be(can be)distributed for the benefit of scouting. Normally, for sales projects, we try and price the items so the members can earn a credit of 35 percent of the sales. This corresponds to the amount earned on scout popcorn sales.

 

In checking the reference to the national scouting website listed below, it turns out that national has recently changed their language. So this needs to be updated again.....

 

If you do a cut and paste this will fit on an regular sheet of paper.

 

Hope this helps.

 

 

To the Scouts, Parents, Guardians, and Leaders of Troop XXXX,

 

Below is a copy of the Members Activity Fund policy for Troop XXXX. It was adopted and approved by the troop committee at the February 2006 meeting. Please let me know if you have any questions.

XXXX, Troop Committee Chair, telephone #

**********************************************************************************

Boy Scout Troop XXXX

Chartered by____________________________________ Approved February 2006

Members Activity Funds Policy

Boy Scouts are encouraged to earn money whenever possible to pay their own expenses, and they also contribute dues to their troop treasuries to pay for budgeted items.* In order to help scouts accomplish these goals, and to encourage every scout to participate fully in the scouting program, Boy Scout Troop XXXX conducts approved money-earning projects during the program year. The Troop has established individual activity fund accounts for each member of the Troop. The member Scout earns credit for his activity fund by participating in these approved money-earning projects. A percentage portion of the members sales will be credited to the individual accounts. The Troop Committee is responsible for approving the acquisition and distribution of all funds in these individual activity fund accounts. Money in these accounts belongs to the Troop.

 

The Troop Committee encourages the Scouts and his parents/guardians to use the credit in the activity fund primarily for Troop-approved dues and camping activities. Earning money for dues and camping is the priority. The credit may also be used for other activities and expenses that are part of the Troop XXXX or _____________________Council program as listed here.

 

Approved uses for Members Activity Funds:

 

Troop dues

Weekend camping trips

Summer resident camp (such as ________________)

Philmont Scout Reservation, Northern Tier, and Sea Base

National and World Jamborees

Scout Fair Tickets

Other Scouting activities approved by the Council or the Troop

Uniforms, patches, scout books (with receipts only)

Other equipment purchases necessary for the Scouting program (with receipts only)

 

This list will be reviewed at least once a year by the Troop Committee. Changes can be made only with the approval of the Troop Committee. The funds must be earned before they can be used. No negative balances are allowed. Reimbursements require a receipt approved by the Scoutmaster or Committee Chair.

 

Any balance in these accounts will be carried over from one scouting year to the next.

 

When a member leaves scouting, any remaining balance in the account goes into the Troops program fund.

 

When a member transfers to another scouting unit, any remaining balance, at the request of the Scouts parents or guardians, can be transferred to his new unit, provided the new unit will accept the transfer of the money. All transfers of money must be approved by the Troop XXXX committee.

 

*Quote is from the National BSA website: http://www.scouting.org/nav/enter.jsp?s=ba

Click on Scouting information. Click on Fact Sheet: Boy Scouting? Go to Who Pays for It?

 

[JerseyJohn 10]

Jan,

 

We do two big troop fund raisers per year - A golf tournament (May) and carnival booths (June) These are 100% troop profit fundraisers. Let' say we make $8000.00 on these two events.

 

We take nine trips per scouts year. We would then dedicate about 600.00 to each trip to offset costs and the balance would go to assets, etc.

 

We do a few hoagie sales as well. These are 100% scout account profit and they go like this.

 

If we make a total of 600.00 in two hours and five scouts showed up then it is a total of ten hours work.

So 600 / 10 = 60.00 an hour x two hours for each scout so 120.00 goes into each scouts account.

 

If we make 600 and four scouts show up for two hours and two show up for one hour each it is still a total of ten hours work but split up by the hours.

600 / 10 = 60.00 an hour

four scouts x two hours = 120.00

one scout - one hour - 60.00

one scout - one hour - 60.00

 

Hope it helps.

John

PS....What is this big fundraiser that you are speaking of? Yes, I am the head of fundraising and always looking for more ideas.

[janssenil 10]

Thank you all for the good input! I knew I could count on this forum for advice. Keep those commments coming.

 

JerseyJohn, you asked what our fundraiser is...we just got Council approval tonight so I guess it's official. We're planning a Bike tour and are inviting bike clubs throughout the State to join us. We have multiple routes so Scouts can work on their Cycling Merit badge and campout, too. We'll be selling food and T-shirts. We're going to have everyone try to "spot" several points of interest and answer trivia questions along the route. This is a somewhat historic county so they may even learn something along the way. Those that answer the most questions correctly will be entered in a drawing for a prize.

 

It's a long planning process and a fair amount of work to put together, but I think it will be fun, too.

 

We sure hope it's successful.

[Crooked Arrow 10]

Sounds like you have an interesting project and a somewhat difficult task in determining what is to be done about splitting the proceeds. This project is somewhat different than many I've come across, such as one my unit participates in. We have a Christmas Tree lot. The scouts sign up for scheduled blocks of time - they can maneuver around sports/school/other events and must have a parent present. They have a sign-in/sign-out book to record time spent at tree lot.

 

We divvy up the profits based on an hourly rate

 

(Total revenues - total expenses) divided by total number of hours worked.

 

This gives all the same rate, not the same amount which fits in with each scout's needs. The opportunity to earn a lot is there if they sign up for a lot of hours. A coordinator does some verification of those signing up for a substantial number of hours to see what the need is for and makes appropriate adjustments.

 

Our scouts can use these funds on scouting related activities - pay dues, monthly camps, summer camps, high adventure trips, uniforms, camping equipment, etc. Anything left in account when they depart from the troop is left in a scholarship fund to help those in need of a little help to pay for camp, etc.

 

Your project does not lend itself to such an easy hourly rate. Sounds like you have opportunities for scouts to help in the planning stage, work behind the scenes preparing/procuring food items, t-shirts, etc. as well as lead various groups on that day, man various stations, etc. Many of these opportunities are not conducive to set hours, such as planning.

 

I would suggest that you come up with some form that gets the scout (and parents) to commit to providing help in some phase(s) of the project. Those who have conflicts with the actual day of the event could then devote more time upfront as an example. Profits could then be divvied up by the number of participating scouts, knowing that some may have put in a lot of extra hours.

 

Given that this will be a success, you will have a template to work from the 2nd and subsequent years and maybe refine how profits will be divvied up. Have Fun!

 

 

 

 

[John-in-KC 311]

Great comments all.

 

Do remember, when drafting a policy on allocation of funds, to show it to your Chartered Partner by way of the COR.

 

- Chartered Partner owns the unit, to include all funds.

 

- Chartered Partner's parent organization (national church body for a religious institution as an example) may have funds accountability mandates.

 

- NEVER EVER RISK your Chartered Organizations IRS 501©(3) status if they are a non-profit! Stay inside the limits of their acceptable operations practices.