inactive Scout Accounts

[SR540Beaver]

Trev,

 

Perhaps that is common practice among troops, I don't know. I do know that we have parents of new scouts who have yet to participate in a fundraiser who would rather have money in the scout's account to pay for monthly outings rather than have to remember to have cash on hand or write a check once a month. They put money in the account so they don't have to worry about being nickel and dimed at the meetings.

 

Again, this is one of those issues where I'm not aware of BSA giving any guidance and a clear and concise written policy would avoid arguments down the road.....as much as I'm against written policies. When it comes to money, things can get very ugly.

[FScouter]

Troops do fundraising to support the activities and operations of the troop, not to give boys personal spending money. The fact that the proceeds may be allocated to a Scout account for the use of the participating boys does not mean the money is the boys personal money. It's troop money that will be used for the benefit of the boy.

 

The troop planned the money-earning event, the troop did the publicity, the troop leaders supervised the event, the troop did the record keeping, the troop provided the location for the event, and the troop provided the product. The income comes from customers that purchase the product or the service. They come to the car wash because the sign says "BOY SCOUT CARWASH" and they want to support Scouting.

 

How much would little Billy earn if he set up his own personal car wash in his driveway, with the proceeds for his own personal benefit?

 

Considering that the boy would have no proceeds at all were it not for the efforts of the troop, its really a stretch to think the proceeds belong to him.

 

[FScouter]

"Scout accounts" is not a program of BSA , so it's not surprising BSA has no policy describing how to operate them.

 

I cannot imagine how a boy or parent would think that the troop would maintain a personal savings account for the boy. Thats what banks are for.

 

[Eamonn]

Little Beav took part in a Troop Fund Raising event. When I asked to see the order form I seen that 60% of the money I spent was going to support Scouting. Of course if this was the Council Popcorn sale, Little Beav and his Buddy would both be doing the sale in their Sunday best uniforms.

I'm aware that the money or at least some of the money will go to support Little Beav in his Scouting adventures.

Eamonn on the other hand is a private contractor, when he knocked on my door and asked if he could mow my grass, I asked him how much he would charge me? Being the plucky little Lad that he is he said $75.00. I said that $75.00 was too much and we settled on $50.00. I have no idea what Eamonn is going to do with his $50.00.

Eamonn and Beav meet up and hand their money to the Troop Treasurer. The Beav's money is entered in as proceeds from Popcorn Sale.

Eamonn's is entered in as Cash.

At the National Jamboree both Beav and Eamonn find that they have a strong yearning to become championship Grass Boarders. They pack their bags and say goodbye to the Troop. On the way they stop at the Treasurers Office to pick up their money. The Treasurer hands back all the money that is entered as cash. However all the money that is entered under proceeds from, stays with the Troop. It was raised to pay for and in support of Scouting.

Back when I was a SM we had Camp Bank Accounts, these were all cash deposits that Scouts made normally every week to pay for the Troop Summer Camp. We never had funding from fund raising events go into personal accounts. All money raised by the Troop was used to help fund the Troop. We had a lot of expenses paying for the insurance and upkeep of the Troop vans and equipment.

This policy was from the Troop Committee. I as Scoutmaster could go to the Committee and inform them that a Scout needed help to attend summer camp and they could decide what they wanted to do and what action to take.

There were times when due to bad planning on my part or some unforeseen expense that we had camps that went over budget and the Committee while not happy did cover the loss.

The only money that we as a Troop had any control over were the weekly subs (Dues) How much they would be was decided by the PLC. The money stayed in the Patrols and was managed by the Patrols. Of course they had a very helpful SM who would remind them that they had lost a compass and they needed to replace it. Each Patrol as well as having it's own Patrol Camp Cook Box, also had it's own Patrol Box which was used at meetings. Every so often the SPL might decide that he wanted to inspect these boxes. It wasn't a big deal each Patrol had their own table with the contents of the box laid out.

Eamonn ( a little plucky lad )

[orennoah]

Money earned through charitable donations and troop fundraising belongs to the troop, a recognized charity, subject to sec 501©(3) of the Internal Revenue Code. That money MUST be used only for charitable purposes. Period. Not subject to any Scout's or parent's thoughts otherwise.

 

If the troop wants to use the funds to cover a particular Scout's expenses - directly related to the charitable purpose of the troop - that's fine. But if that Scout quits the program, "his" account does not magically become available for him to spend as he (or his parent) sees fit.

 

A troop should be very, very wary of becoming a "bank," by accepting deposits from Scouts. Trouble will likely follow. SR540Beaver's example shows the problem. The boy who sold popcorn, did so as an agent for the troop, as part of a charitable fund raising effort. The boy who mowed lawns, however, was earning money on his own. Now, the problem is that the Troop accepted his money as a deposit, turning the troop into a bank. The two "accounts" are totally different. The troop doesn't owe the first boy anything, but owes the entire amount to the second boy. Further, the troop just comingled charitable and non-charitable funds. That's a definite no-no, not only under Federal law, but also under every state's law. This could imperil the troop's legal status as a charity.

 

There are many things in Scouting subject to different views. This isn't one of them.

 

- Oren

[SemperParatus]

A troop has no legal status as a charity. The charity status resides with the Chartered Organization. A troop is but an extension of the CO.

 

Moneys raised through fundraising efforts are done so under the legal auspices of the CO and become the property of the CO (albeit, the accounting may specifically dedicate such funds to providing the scouting program to its individual members). Direct cash contributions to scout accounts needs a written policy as to the disposition of the funds. Without such a policy, direct cash contributions would also be considered property of the CO, and the contribution would be considered a donation to the CO/Troop. The policy should clearly explain that direct cash contributions to scout accounts are held by the CO/Troop, in trust, for the benefit of the individual scout and that the CO/Troop is liable for the return of such funds upon reasonable request of the individual.

 

(This message has been edited by SemperParatus)