What’s more, the high school principal, facilities manager, and athletic director all claimed ignorance of how such a structure had arrived on the property.
In the end, district officials determined that a booster club had taken it upon themselves to raise funds and recruit volunteers to build the press box, all without seeking school administration or school board approval.
Issues at Hand
This particular booster club fundraising situation highlighted several issues that were incumbent upon me, as a school business administrator, to address in our school district:
- The district had no written booster club guidelines, procedures, or expectations.
- The project represented a donation that was not presented to and approved by the school board in accordance with written board policy.
- Communication between the booster clubs and the athletic director and school administration was poor or nonexistent.
- Liability insurance during construction to protect against potential injury or damage had not been verified.
- The school had neither involvement nor oversight during construction to ensure that standard construction practices adhered to the building code. Further, no one contacted the municipal building inspector for permits or inspection of the finished press box.
This brings me to the first best practice:
Best Practice 1. Even if it’s not legally required, go through the permitting process on any construction work to ensure proper construction and safety and to maintain good relations with municipal officials.
My biggest concern was the realization that this one incident represented a broader cultural norm and insufficient oversight of booster clubs and fundraising in the school district.
A properly established booster club is important, but how it operates is a harbinger of the school’s level of risk.
Thus began my foray into the opaque world of booster clubs, student activities, fundraising, good intentions, and necessary controls. The following sections outline our school district’s actions relative to booster clubs and best practices for fundraising activities in order to mitigate risk.
Culture and Communication
By definition, a booster club is an independent organization formed to support extracurricular groups or athletic teams, typically through volunteering and fundraising. As such, any actions taken by booster clubs are ostensibly for the benefit of the school and the students involved in a specific group.
However, if booster clubs lack any type of defined, written guidelines, procedures, and expectations, as was the case in our district, the transition to a more defined and controlled relationship can be difficult. Setting (or resetting) expectations requires relationship building and collaboration.
We achieved this objective by forming a booster club subcommittee and inviting key stakeholders (booster club officials, school board members, the athletic director, and the principal) to participate in defining the relationship between the district and the booster clubs and drafting a set of booster club guidelines to help the booster clubs operate and work with the school.
Best Practice 2. Formalize written guidelines in collaboration with booster club members and other key stakeholders.
Booster Club–School Relationship
Since no school district wants to alienate an organization that helps support the school, striking the right balance between mitigating risk and supporting booster club activities is key to a successful relationship.
Best Practice 3. Frame the guidelines-setting dialogue or activity as a service to the booster clubs to protect them, protect the school, and minimize liability for both entities.
We worked with our booster club subcommittee to develop guidelines that provide general information on (1) creating a booster club, (2) operating a booster club, (3) establishing specific fundraising rules and guidelines that align with school board policy, and (4) formulating proper accounting and reporting requirements.
Again, the intent is to provide information for the booster clubs through a defined set of guidelines as a resource for the successful partnership between the booster club and the school.
Booster Club Formation
Since the booster club will conduct fundraising on behalf of the school and will use the school’s name, the booster club organization must be established correctly and must follow a set of general rules. This process includes establishing the booster club as a 501(c)(3) organization, acquiring liability insurance, electing officials, and setting bylaws. Members should also agree to follow the school’s code of acceptable conduct.
In School Administrative Unit 21, which serves the communities of Hampton Falls, North Hampton, Seabrook, South Hampton, and Winnacunnet Cooperative High School, we require booster clubs to submit documentation of the aforementioned items to the athletic director (for sports-related booster clubs) or student activities director (for other extracurricular activities and groups).
Best Practice 4. Require all booster clubs to sign off on the guidelines with the understanding that if they do not abide by the stated rules, they could lose school rights and privileges.
These basic requirements are critical to ensuring that booster club members model appropriate behavior at events and that the clubs are clearly delineated as separate, outside organizations. The requirements also limit the school district’s exposure to liability, particularly since booster club activities are not covered under the school’s liability insurance, and any lawsuit would undoubtedly name the school district.
Further, booster clubs are typically run by parents who do not necessarily have the dedicated time or expertise in these areas. Providing some hand-holding in this process ultimately protects the school district because the paperwork has been completed and submitted correctly.
Best Practice 5. Help booster clubs set themselves up as 501(c)(3) organizations and provide information about liability insurance carrier contacts.
Booster Club Operations
A properly established booster club is important, but how it operates is a harbinger of the school’s level of risk.
Best Practice 6. Require booster clubs to conduct public meetings and record minutes (providing the agendas and minutes to administration); to follow the school’s facility-use policy, including submitting space requests; and to clearly specify the responsible party for supplying activity or marketing material.
These measures emphasize the separation of the school and the outside organization (booster club) and protect the school district from potential liability.
The core tenet of booster clubs is fundraising and enhancing the particular group or program; however, set rules must be in place to protect students, families, and the school district.
Best Practice 7. Have explicit rules barring booster clubs from requiring or pressuring students or parents to engage in any fundraising activity; include investigation procedures.
Further, it is important to mitigate the potential risk of fundraising activities that do not align with the school’s code of conduct, such as Casino Night.
Best Practice 8. Require booster clubs to submit a plan for fundraising activities to the athletic director or student activities director for approval before the season.
This approval process is particularly important with regard to Title IX requirements. A booster club providing resources, equipment, funding, and so forth for a team representing one gender could have budget ramifications in that the school district would be required to provide commensurate resources for another team to satisfy Title IX requirements via the operating budget.
Additionally, with the increase in crowdfunding, it is important to include allowable crowdfunding activities in school board policy. We outline recommended crowdfunding platforms that we believe offer better safeguards and controls for organizations.
Best Practice 9. Outline appropriate use of fundraising monies to align with the mission of the booster club and school and set clear expectations for how funds can and cannot be used.
Booster Club Accounting and Reporting
Finally, the reporting and accounting of booster club fundraising activities is key to community trust and support.
Best Practice 10. Ensure the transparency of financial reporting and accounting of all booster club funds in order to mitigate any perception that funds are being misused.
We require booster clubs to submit a proposed budget at the beginning of the year and an annual financial statement at the completion of the season. This requirement includes all current revenue and expenditures for the year to date with supporting documentation (i.e., copies of receipts, checks). We require evidence of the filing of any appropriate tax forms, funds being held in a recognized financial institution, two signatures on all checks, and an annual internal audit.
Being Vigilant
In short, allowing booster clubs to operate without set guidelines and written procedures can be risky for any school district. I recommend that districts review the booster club operating guidelines every two to three years to ensure that all requirements and recommendations are updated.