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Some great email questions regarding aquatics awards, finances, and working with adult volunteers along with a visit from our old friend Brick Mason!
Resources mentioned in this podcast – my Scout accounts article, FISCAL POLICIES AND PROCEDURES FOR BSA UNITS from the BSA.
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When talking about Scout accounts, it’s important to separate two important aspects.
Strictly speaking, a unit can maintain Scout accounts in trust for its members to pay for Scouting expenses, such as camping, equipment and fees. There are no rules against this and it can be very helpful for both the families and the unit as long as the treasurer is comfortable maintaining the records.
The other aspect is the source of funding of those Scout accounts. As long as the member provides the money that’s deposited in the account, there is no issue. It’s similar to an escrow account that a homeowner might have attached to his mortgage for payment of taxes and property insurance. This can be a convenience for the parents, who might write a check to the unit annually or periodically and then draw from those funds as needed to pay for ongoing expenses such as annual registration, summer camp and monthly campout costs. If the unit has a bank account that charges fees for each item deposited, this can reduce fees by cutting down on the number of checks that are written to the unit.
The most recent statement of policy by the BSA prohibits funding Scout accounts with fundraising proceeds in proportion to the sales activity of the individual members. IRS has ruled that this constitutes private benefit in an organization ostensibly organized for the public good (as most chartered organizations are). Although Finance Impact has made statements in a couple publications, significant awareness of this policy has yet to trickle down to most units via their councils and districts. Likewise, chartered organizations may not be aware of the maze of IRS opinion letters and how they pertain to them. And many units that are aware of the policy are taking a wait-and-see approach before making any major changes to their fiscal practices.
The safest and probably most equitable approach is as Clarke recommends – to continue fundraising but use all proceeds to benefit the entire unit or a major program of the unit (like high adventure), rather than allocating them to individuals. And there is still a provision for fundraising to cover the cost of a Scout’s Eagle service project, because the money benefits the owner of the project and not the Scout, the unit or Scouting.