Preparing and having the board or membership approve an annual budget and program plan is one of the most important legal responsibilities of nonprofit groups. A parent-led fundraising group budget may be fairly simple, setting forth the main sources of income, and the expected amounts for each, and the main categories of expenses and amounts of each. Reports should be prepared regularly throughout the year that show actual income and expenses compared to the budget.
Download the PDF for a sample budget worksheet.
The IRS has strict rules regarding nonprofits setting up individual fundraising accounts (IFAs) as these types of activities are called. See PBUSA’s policy on IFAs.
No. Anytime a donor receives something of value in return for the money paid it is not considered a tax-deductible contribution. However, to the extent that a purchaser pays more than the fair market value of an item a deduction may be taken for the amount paid that exceed the fair market value. For example, if a parent pays $50 for a $25 gift certificate to a local restaurant, the parent may deduct the amount exceeding the fair market value – $25 – as a contribution. Some items, however, such as a class quilt, or painted furniture or other one-of-a-kind item cannot be easily valued and therefore the price paid is considered by the IRS as the fair market value. Similarly, the cost of a raffle ticket is considered its fair market value because it is the price a willing buyer will pay for the chance to win the prize being raffled.
There is no legal requirement that nonprofit, tax-exempt organizations spend all of their funds and there is no limit on the amount of funds that may be carried over to subsequent years. Many larger nonprofits hold funds equal to one-year or more operating budget in reserves. Parent groups frequently carry forward at least minimal sums to get the next year started. Sometimes parent groups must save funds for several years to purchase a large capital or other item, such as playground equipment, new band uniforms and the like.
50-STATE TOURIts inception blossomed on January 3rd, 2024. Picture this — the team at PBUSA is back in full force following the new year and gearing up for the most ambitious outreach ever executed in its history; visit all 50 states and Washington D.C. all within 12 months.
Before we could talk ourselves out of it, on January 8th, we hopped on a plane to Portland, Maine. Once we landed, we began the first of many 1,000-mile road trips.
After leaving Maine, we visited public school district offices in Montpelier, VT, Concord, NH, Provincetown, MA, Providence, RI, and New Haven, CT.
It was a whirlwind of a four-day ambitious journey that laid the foundation for how we would approach the remainder of our PBUSA 50-State Tour.
PBUSA is turning 20 in 2024. That’s 20 years of supporting school fundraising volunteers by managing their tax-exempt status so they can focus on their organization’s mission. We’ve come a long way in 20 years, with over 5,000 organizations across all 50 states calling themselves members of Parent Booster USA.
Since PBUSA’s inception, travel has always been an important part of reaching booster clubs. Our team meets with members and non-members alike, and school district officials too. It’s all part of our pursuit to educate communities on the dos and don’ts of school fundraising compliance.
So, why all 50 states? To celebrate our 20th anniversary, our goal is to meet as many booster club officers, school district personnel, and school fundraising superheroes as we can. And to make it happen, we are leaving no corner of the country untouched and no stone unturned.
With six states visited in January, Nevada and Arizona in February, and a brief hiatus in March, it's time to get back on the road. The adventure continues in April and wraps up in May as we finish traveling the western side of the United States.
After wrapping up the Great Alaskan Adventure, we will have visited 18 states — bringing educational resources, and providing in-person workshops to school districts and fundraising volunteers in all paths traveled.
With 32 more states to venture, plenty is on the horizon.
Are you ready to meet us on the road? Submit your information on our Road Show interest page, and I’ll let you know when we’ll be in your area!
Ready to see more and follow the action as we visit all 50 states and DC? Follow PBUSA on Facebook and Instagram!
