financial requirements

[nwimom]

Our pack broke away from another when our district lines were redrawn about 3 years ago and finances have been a mess ever since. There really are little if any records of the past 3 years. We are finally getting the record keeping straight for this year after finally getting someone who cares what is happening. We had to get our own EIN number but do we need anything else? I was told we need a 503c status for us to get donations, but our charter organization is a methodist church can't we use theirs? Is there anything else as a new pack that we should have? My husband has just taken over as cubmaster and the former did not really know what proper procedures or recordkeeping was.

[scoutldr]

My first suggestion would be to call your Unit Commissioner for help sorting this out. If you don't know who your UC is, call your District Commissioner (your Council can tell you who it is for your District).

 

Start with a Unit Budget Plan (forms are available from your Council). A simple balance sheet budget should suffice. Have a Pack Committee program planning meeting to determine what activities will be in the coming year and decide a budget for each one. Don't forget awards for each Pack Meeting, which can be a serious expense. Next, decide how to raise the funds. Your CO may help out with "seed money", but don't count on it. Units are generally prohibited from soliciting direct cash donations, but fundraising is allowed (preferably by selling Popcorn, which some Packs are really good at).

 

I'll let the lawyers and accountants help here, but my understanding is that units do not usually need an EIN or a 501c3 status. A Pack is owned and operated by the CO and is not a legal entity in itself. Therefore, packs do not "own" anything, including money.

 

Lastly...this is all the job of the Committee Chair, not the Cubmaster.

 

Good luck and enjoy!(This message has been edited by scoutldr)

[John-in-KC]

Scoutldr said an awful lot in that post

 

There are two other people you need to contact in regard to unit finances: Your Chartered Partner's Executive Officer (possibly the Pastor or Parish President, maybe chairperson of Board of Youth), and your Chartered Organization Representative. One reason you need them is that your books need to support their books, as the IRS can check all organizations sponsored by the CP.

[Beavah]

Yah, what scoutldr and John-in-KC said, eh?

 

I'm a bit confused by your gettin' an EIN number. Is da pack separately incorporated? This isn't usually needed and can create some (tax authority) confusions and complications. Incorporating and filing for your own exempt status under 501©(3) is a pretty durn complex undertaking with a lot of reporting requirements; it'd be some serious overkill for all but a very, very active troop or Sea Scout Ship wit lots o' assets.

 

Better to do everything through your CO as John-in-KC suggests.