Jump to content

Individual Scout Accounts


Lady_Leigh67

Recommended Posts

We have had a program called "Cubby Bucks" for the last 3 years. Only money from fundraisers is put into the account. They can be used for any event and dues. We give the leaders updated numbers once a month. We use PackLedger from TroopMaster to track the balances for each scout(and all of our financials) as the program is set up for exactly this use. When the boy either moves up to Boy Scouts or transfers to another pack we send a check to the appropriate pack/troop for them to use. To be honest we have not had a boy drop out that had a balance. The ones that leave usually do not participate in the fundraisers.

 

In this current economy the parents love this idea and being able to raise the funds needed to participate so they have no out of pocket costs. No arguments or issues so far.

Link to comment
Share on other sites

  • 4 years later...
I know this is an old thread, but I'm poking around to see if anyone knows why so many units are doing this (individual scout accounts) despite the fact it's prohibited by the IRS? http://www.scouting.org/filestore/financeimpact/pdf/Fiscal_Policies_and_Procedures_for_BSA_Units.pdf
A variety of reasons:

"Always done it that way before."

"The cost the IRS would incurr in persuing units would not be worth the taxes that could be garnered from every ISA"

"Educating boys in commerce and incentives is consistent with our mission."

"ISA's are merely troop funds put under stewardship of each boy, according to their particular fundraiser. Purchases made using them improve the life of the troop."

Link to comment
Share on other sites

"I am not a tax professional so most likely everything I say is wrong" I'd actually like to know what the correct thing is.

 

My understanding is that you can't put a dollar amount earmarked for the boys. But you can assign an actual voucher for the boy. For example, sell $1000 in popcorn you earn a trip to super camp. So you can earn vouchers that have only value to do a scouting activities but they retain zero monetary value. Kinda like old disneyland E-tickets. This campout requires 1 voucher, another requires 8 vouchers.

I don't think this is skirting the issue, but still achieves the purchase. Thoughts?

Link to comment
Share on other sites

"I am not a tax professional so most likely everything I say is wrong" I'd actually like to know what the correct thing is.

 

My understanding is that you can't put a dollar amount earmarked for the boys. But you can assign an actual voucher for the boy. For example, sell $1000 in popcorn you earn a trip to super camp. So you can earn vouchers that have only value to do a scouting activities but they retain zero monetary value. Kinda like old disneyland E-tickets. This campout requires 1 voucher, another requires 8 vouchers.

I don't think this is skirting the issue, but still achieves the purchase. Thoughts?

So, not only do you evade tax reporting, you create a new currency.

 

Guess what the Dept of Treasury thinks of earnings in bitcoin?

Link to comment
Share on other sites

"I am not a tax professional so most likely everything I say is wrong" I'd actually like to know what the correct thing is.

 

My understanding is that you can't put a dollar amount earmarked for the boys. But you can assign an actual voucher for the boy. For example, sell $1000 in popcorn you earn a trip to super camp. So you can earn vouchers that have only value to do a scouting activities but they retain zero monetary value. Kinda like old disneyland E-tickets. This campout requires 1 voucher, another requires 8 vouchers.

I don't think this is skirting the issue, but still achieves the purchase. Thoughts?

The IRS will look at substance over form every time.
Link to comment
Share on other sites

"I am not a tax professional so most likely everything I say is wrong" I'd actually like to know what the correct thing is.

 

My understanding is that you can't put a dollar amount earmarked for the boys. But you can assign an actual voucher for the boy. For example, sell $1000 in popcorn you earn a trip to super camp. So you can earn vouchers that have only value to do a scouting activities but they retain zero monetary value. Kinda like old disneyland E-tickets. This campout requires 1 voucher, another requires 8 vouchers.

I don't think this is skirting the issue, but still achieves the purchase. Thoughts?

Any better solutions?
Link to comment
Share on other sites

I think the best solution is:

 

1. Realize that individuals will not get anything out of fundraisers. It is for the group.

2. Spend the money on the program, not the scouts.

3. Not worry about fairness. Everyone is going to have a different take on that anyway.

 

Compare to a PTA raising funds for a new playground at the local school: Will only the kids who sold overpriced candy bars, wrapping paper, gift baskets, etc get to play on it?

 

It's policy now. Time to build a bridge and get over it.

  • Downvote 1
Link to comment
Share on other sites

My troop just got away from individual accounts. We told all the parents that fundraising was mandatory for all scouts and families. Our CO uses a portion of the fundraising profits to pay a portion of summer camp for any scout attending. All other dues and fundraising go to the program and equipment. During PLC's the scouts are encouraged to budget and plan out their campouts. 3 primative campouts = 1 canoeing campout, sort of thing.

Link to comment
Share on other sites

  • 5 months later...

Yes, that is a recent clarification, I think. Any funds raised by a non-profit entity must be used for the general benefit of the program, not for any one individual, such as uniforms, camping equipment, etc. The unit must retain ownership of items purchased. As stated in the guidance, any funds raised remain the property of the CO, should the unit fold or scouts transfer or drop out. It's best just not to go there. Caveat: I am not a lawyer, CPA or IRS agent.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...