Budgeting, Financing, and Raising Funds for Packs, Troops, and Crews/Ships

Scouting units need to raise funds and spend them in support of their programs. This information is divided into several sections:

• Unit Accounts at the Service Center
• Unit Fundraising
• Unit Management of Finances
• The Annual Budget
• Unit Bank Account
• Tax ID Number for Unit Accounts
• Sales Tax Exemption
• Friends of Scouting
• Popcorn 2010
• Frequently Asked Questions

Unit Accounts at the Service Center

As a service to our units, the Des Plaines Valley Council will accept advance monetary deposits, which can be used for Scout Shop purchases, member registration fees and camp or activity fees. A deposit may be made in cash, check, Visa, Master Card, and Discover Card.

The unit must designate registered leaders who are allowed to utilize these funds. Names must be submitted in writing to the Scout Shop Manager, and changes or deletions must be authorized by at least two current key unit leaders.

This is not a credit account. Only the amount of money on deposit is available to be spent. No monthly statements are issued. It is the responsibility of the users of the account to keep receipts and balances. If there is a question, we will be able to run a balance sheet or determine your current account given a reasonable lead time of 2 days notice.

Unit accounts can be started at any time. We hope this makes your shopping easier.

Unit Fundraising

An important function of the unit committee is to guide the unit finances. Stewardship through the use of an annual budget plan will assure the funds are acquired and expenses met.

There are policies concerning money-earning projects in Scouting designed to protect the good name of Scouting and the liability risks to volunteer leaders. A summary of key guidelines is listed below.

A complete set of guidelines can be found in the pamphlet #14-619A, District Finance. Which is available at the Scout Shop.

1. No direct solicitation of funds by units is permitted.
2. The unit committee is the custodian of all unit funds. The charter partner owns the funds, but generally abrogates the handling of the accounting to the unit
3. All units must submit the Unit Money-Earning Application #34427 to the local council for approval two weeks prior to a fund raising event.
4. General guidelines for money-earning projects include:
1. No gambling, raffles, or conflict with local ordinances.
2. "Value received for money spent."
3. Respect territorial rights of others.
4. No conflict with goods or services offered by established merchants or workmen.
5. The name and goodwill of the Boy Scouts of America must be protected and not used as a "front" to promote commercial interests.
6. No contract signed by a unit may bind the BSA, either local or national.

Unit Management of Finances

Proper management of the unit’s finances will allow your unit to achieve its program goals. The recording, disbursing, and budgeting of unit funds, along with unit-money earning project assistance, is the responsibility of the unit committee and its treasurer.

The Annual Budget

The unit budget is a plan for receiving and spending unit funds. Immediately after the approval of the unit’s annual program plan, the unit leader and committee treasurer should start the preparation of the annual budget. The Unit Budget Plan and the Troop/Crew Record Book are useful guides.

Unit expenses will include:

• Membership registration fees
• Boy’s Life subscription (optional)
• Unit Accident Insurance
• Advancement and earned insignia
• Literature for the Scouting library and record keeping
• Unit Charter fee (which goes to the general liability insurance program)
• Reserve Fund (including unit flags, new camping gear, and program supplies)

Activity expenses for trips are usually paid by the participating boy and his parents or raised through money-earning projects such as the Trails End Popcorn Sale.

Unit Bank Account

Every unit should have a checking account at a local bank. An account that requires two signatures on each check, those of the committee treasurer and unit leader is recommended. Unit funds delivered to the treasurer need to be recorded and deposited weekly into the unit’s checking account. Disbursements from the checking account are made on the recommendation of the unit leader with authorization of your unit committee.

Tax ID Number for Unit Accounts

Each Pack, Troop, Venturing Crew/Ship, or Post that has an interest-bearing account with a bank must apply for a federal identification number. This number for the unit is used by the banks and IRS concerning the interest from the accounts. This has nothing to do with the tax exempt number; this is a totally different number and situation. Each unit must file an SS-4 APPLICATION FOR EMPLOYER IDENTIFICATION NUMBER with the Internal Revenue Service.

Write to:

Internal Revenue Service
Department of Treasury
Kansas City, MO 64999

Toll Free Number is 1-800-829-4933.

Any further questions can be directed to the IRS or to the Council Office.

Sales Tax Exemption

The State of Illinois extends exemption from its sales tax to all Scout Councils and chartered units and in a revised procedure provides a single tax exempt number for claiming that exemption. The Sales Tax Exemption number is: E9982-8707-05.

To claim the exemption, you must provide this number to your suppliers when purchasing tangible personal property for organizational use. This exemption may not be used by individual members of the organization to make purchases for their individual use.

Friends of Scouting

The Council provides many services to make the Scouting program possible for your unit. These services include program support materials, training, advancement program, activities, camping facilities, high-adventure opportunities, and personnel.

Friends of Scouting is a primary source of operating income for the Council. Friends of Scouting are those individuals with an interest in the Boy Scouts of America and a desire to support the program financially. When properly informed and given the opportunity, many families of youth members wish to become Friends of Scouting.

Popcorn 2010

Selling popcorn is easy! Research shows that 4 out of 5 people asked, BUY! What better way to plan your ideal year than to budget a hugely successful popcorn sale.

Frequently Asked Questions

Here are some answers to specific questions about fiscal policies and procedures for Packs, Troops, and Crews/Ships

Need more information? Check out our Who Pays for Scouting!

This is the official site of the Des Plaines Valley Council, Boy Scouts of America

This page was last modified on Wednesday, February 24, 2010 @ 02:00pm