Frequently Asked Questions
BUDGETS
--------------------------------------------------------------
Q Is there a recommended process for budget building?
A Yes, make a list of expenses and assign a cost to each item. Use last year’s expenses as a ‘go by.’
Awards, advancement and recognitions you need,
Trips you want to take, entry fees,
Registration fees, Boys’ Life magazine, insurance
Handbooks, neckerchiefs, unit numerals?
Financial assistance?
Training fees for youth and adults
Program material?
Equipment replacement
Itemize your costs and add the total. It is often helpful to view expenses in terms of cost / youth member.
With a good idea of expenses facing you, begin to strategize on how your unit will meet costs through dues and money earning opportunities. The Sam Houston Area Council offers 2 excellent projects annually with popcorn sales in the fall adn Scout Fair coupon sales in the spring.
Additional Considerations:
Maintain dues at a level so each youth member can learn to pay their way without dues posing a hardship
Adding registration fees to the budget helps make the rechartering process much easier.
Keep a reserve fund of 15-30% of your annual budget for emergencies
Read more on budgeting
MONEY EARNING PROJECTS
--------------------------------------------------------------
Q Can a unit (pack or troop) solicit funds?
A Soliciting funds from within the unit is acceptible, but no other solicitation is allowed.
Q What projects does the Sam Houston Area Council offer for unit money earning? A The council offers two projects annually to help units to raise necessary funds.
1. Scout Fair Ticket Sales kickoff in February.
Participating units earn up to 45% sales commissions
Scouts earn prizes and recognition
No need to file a Unit Money Earning Application
Uniforms can be worn by participants
Quality product, excellent value and repeat sales
No unit risk
No Sales Tax consquences
2. Popcorn Sales kickoff in September
Units earn up to 35% sales commissions
Scouts earn prizes and recognition
No need to file a Unit Money Earning Application
Uniforms can be worn by participants
Quality products, excellent value and repeat sales
No unit risk – order what you sell
No Sales Tax consequences
Q Can a unit elect to earn money in ways other than listed above?
A Yes, units can apply to raise funds using a Unit Money Earning Application form. An online application process will expedite your efforts.
Q Are signatures required for the online Unit Money Earning Application form?
A No, however council grants approval with the understanding that Chartered Partner and Unit Committee approval has been secured.
Q How quickly will the online Unit Money Earning applications be approved?
A Usually within a few hours.
Q Is there a paper Unit Money Earning Application form?
A Yes, this form is available from the council resource center or you may download the form here and print a copy to mail or fax.
Q Why is this Unit Money Earning Application important?
A Remember when mom said “because I said so” … it is our policy, but here are some of the reasons why it is in place:
Call referral of potential customers
Problem solving
Health & Safety
Guide units in making good decisions
Save units from possible heartache
Insure that units are not binding the Boy Scouts of America or the Sam Houston Area Council in contractual agreements
Q Which units must complete a Unit Money Earning Application form?
A Any unit engaging in non-council money earning efforts with the sale of goods or services must file.
Q Does the Sam Houston Area Council offer financial assistance for Boy Scout summer camp?
A Camperships enable Scouts to have a summer camp experience who, because financial needs, could not otherwise attend. Limited financial assistance is available on an individual basis for those Boy Scouts and Varsity Scout who cannot attend Summer Camp without this help.
Units should submit individual applications to program services on or before April 15. Campership funds are administered by the Council Camping Committee. Scouts should be responsible for earning at least a portion of his camp fee. The maximum funding from camping assistance (campership) is one half the total camp fee.
Note: Council camperships are for Sam Houston Area Council camps only.
Q Does our unit have to pay State Sales Tax on purchases made solely for the use of our unit?
A Most purchases made exclusively for unit usage can be claimed to be exempt from state sales tax. Use the State Sales Tax Exemption Certification. This works for most merchants but not all, e.g. You will not be able to use this form at a Sam’s Club unless the membership is set up in the name of your unit. If you find retailers demanding something more than the Tax Exemption Certification, use the generic tax letter for troops.
Q How does our unit secure a Tax Letter?
A If the aforementioned generic tax letter does not meet you specific needs contact the Texas State Comptroller's Office. requesting a tax letter.
Texas Controller’s office
Exempt organization section / Franchise
Wanda Carter X 1-800-531-5441 x34142
Application Educational Category
Q Does our Unit have to collect and pay Sales tax related to product sales?
A The State of Texas allows two 24-hour sales periods exempt from sales tax. The state realizes this and allows longer sales to count as one of the 24 hour exempt sales periods.
Q Is our unit a charitable organization?
A No. Chartered partners are often charitable, but units are not automatically subordinated to share the same status.
Q Is it all right if our unit solicits companies, foundations or individuals?
A No. Read through Unit Money Earning Guidelines. There is no provision for this kind of solicitation.
Q How long does our unit need to retain financial records?
A Most transactions are online these days so retaining a hard copy of records is not absolutely necessary. However, a good rule of thumb to go by for the person in charge of finances, is to keep hard copy records for the time they are in that position - handing over the hard copy to the next person handling the records. Where possible, it is best to retain 2-3 years worth of hard copy records. You definitely will want to keep important documents involving any change in account signers or any other big or unusual activity. Banks keep the records for seven years. Should units need anything that far back, you can usually find the information at the bank.
Q How can Eagle Scouts raise money to fund their project?
A Eagle projects cannot be a fundraiser, but Eagle candidates may earn money in order to secure materials to be used for a project. Eagle candidates should work with the organization they are rendering service and ask what funds are available for the project. If candidates opt to solicit they will need to use the tax id number from the organization they perform service for.
Q How do I open a unit checking account?
A Every unit will eventually need to have a checking account. Sometimes this gets confusing for units because banks demand a federal tax number (EIN). Banks also will often ask for other things like articles of incorporation, tax letter, bylaws, etc. This does not apply to you, but bank employees may not be aware. Use the contact information below to secure necessary validation (unit roster, charter, minutes from the last committee meeting, etc.) to open the account.
Note: Do not use your social security number for checking account identification because all financial transactions are attributed to the individual providing his or her Social Security number. This could pose problems!
If you require assistance call (713)756-3318 or email moneymatters@shac.org
Q Can we use our EIN for purposes other than checking account identification?
A NO
Q Can our unit assign a portion of sales (popcorn for example) for exclusive use by a youth member? These are often referred to as Unit Scout accounts... A Make sure that any sale of materials, instructions, and support information do not make reference to individual Scouts earning money for their individual participation in Scouting activities. See National Memo
If you have unanswered questions pertaining to unit finance, please send your questions to moneymatters@shac.org so we might help you and others.
