The following checklist serves as a guide to help ensure that your Parent Organization have complied with the District's Board Policies and guidelines and federal and state regulations governing Parent Organizations. In addition, information you document here will help future officers continue your compliance efforts.

Initial Year and when changes occur

Please note: All parent organizations must complete a Parent Organization Registration & Approval Form. If any parent is planning to establish a new parent organization, written approval must first be obtained from the School Principal or Administrator (if the organization is not located at a school) before proceeding with any other steps to create a Parent Organization and to organize any activities by completing the Parent Organization Registration & Approval Form. Principals, after signing this form, please send a copy to the Department of Internal Audit.

• If you haven't yet done so, please apply for IRS 501(c)(3) exemption. The District is requiring all Parent Organizations to be IRS 501(c)(3) organizations. Please see Federal Regulatory Information for more details.
• Provide the School Principal or Administrator (if the Parent Organization is not located at a school) and the Department of Internal Audit with the Parent Organization's Determination Letter from the IRS and Bylaws when they are originated. In addition, provide updated copies as changes or amendments are made. 

Annual Submissions (Due by September 15th)

•  Provide the District's Internal Audit department and the School Principal or Administrator (if the Parent Organization is not located at a school) with the Parent Organization's official mailing address and with a list of Parent Organization officers by                               September 15th each school year and as officers change by completing the Parent Organization Information Sheet.
• Provide a Financial and Review Report for the fiscal year ending the previous school year along with the 990N (e-postcard) confirmation to the School Principal and the office of Internal Audit by September 15th. For more information, please refer to the Financial Report and Review Report sections under Taking Care of Business in these Guidelines

Fundraisers

• Provide the Sponsor and the School Principal or Administrator (if the Parent Organization  is not located at a school) with a list of fund-raisers planned for the current year by September 15th.
  
  On this list, please include the following information:
  • Purpose of the fund-raiser.
  • Type of fund-raising activity (ie, candy sale, car wash, BBQ, etc.).
  • Date(s), time(s), and place(s), of the activity.
  • Name of the sponsoring organization.
  • Name and phone number of person(s) in charge of the fund-raiser.
  • Name and phone number of the person who will be handling the money for the fund-raiser
  NOTE: Sending a list of the fund-raisers does not constitute an application for approval of the fundraisers and the Principal's acceptance of the list does not indicate approval of these activities.
• Submit a completed Fundraising Activity Permission Request for Parent Organizations at least 30 days prior to the fund-raising activity.
• The Parent Organization  cannot require members or students to fund-raise or raise a certain amount. For example, a student's ability to attend a trip cannot be based on raising a certain amount of money. If your Club is currently requiring fundraising, discontinue this requirement.
  
  
• The Parent Organization  cannot use individual accounts to credit an individual for funds raised. If your Club is using individual accounts currently, this practice should be discontinued.
  
  Fundraising is an opportunity to generate revenue for the Parent Organization  as a group, not individuals. Therefore, revenues should be recorded in a group account where all members or students have the same opportunity to benefit equally from the revenues.
  
  One member or student should not receive a larger benefit from fundraising than another. In addition, if a member or student chooses not to participate in the fundraiser, that person still receives an equal benefit from the revenues generated.
  
  If your parent organization has received a limited tax-exemption from the Texas State Comptroller's Office, your organization is entitled to two (2) “one-day, tax-free” sales/auction days per calendar year.
  
  
• At the conclusion of the fundraising activity, it is recommended that an Operating Report be completed and provided to the organization's treasurer and not the school. The organization is responsible for handling the money received and the related expenditures as well as keeping the fund-raiser records as required for record retention.
• If you have received a sales tax exemption from the Texas Comptroller's Office, you are entitled to two “one-day, tax-free” sales days, indicate the “one-day, tax free” sales/auction that have been used or that are planned:
  
  Calendar Year: ___________________________________
  
  Date / Fundraiser: ___________________________________
  
  Date / Fundraiser: ___________________________________
  
  Calendar Year: ___________________________________
  
  Date / Fundraiser: ___________________________________
  
  Date / Fundraiser: ___________________________________

Financial Matters

The Bank accounts used by the Parent Organization  include:

Determine the identification number used for the bank accounts. The Parent Organization 's Employee Identification Number (EIN) should be used. Do not use an individual's Social Security Number, and do not use the District's EIN.

Update the authorized signers on your bank accounts as officers change. The current authorized signers include the following Parent Organization  officers:

A District substitute or temporary worker may be a Treasurer or authorized signer on the bank account of a parent organization with written approval from the principal or supervisor where the organization is located.

Please send a copy of the approval to the Internal Audit Department.

See Request for Authorization for WISD Employee to be a Treaurer or Signer on Parent Organization Bank Accounts.

Federal Regulations

The following items need to be done only once since the origination of the Organization.

• Obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS).
  
  
  
• Determine whether the Parent Organization  has received tax-exempt status as a public 501(c)(3) organization from the IRS. If the IRS has approved the Organization's tax-exempt status, a Determination Letter would have been received from the IRS.
  If you have not applied for the tax-exempt status, complete the IRS Form 1023, Application for Recognition of Exemption, and Form 8718 User Fee for Tax-Exempt Organization Determination Letter Request. Submit these forms and the application fee to the IRS.
• If you have applied for the tax-exempt status but you have not received your Determination Letter, you should receive an Acknowledgement of Your Request.  Call the IRS to determine the status of your application.
• If you have received a Determination Letter from the IRS approving your Organization as a public 501(c)(3) organization, determine whether your status as a public tax-exempt organization is temporary.
  
  
  

The following items may be applicable during each school year or calendar year.

Determine whether your Organization is in good standing with IRS at Tax Exempt Organization Search Tool

• File the IRS Form 990-N (e-postcard) annually.  Most small tax-exempt organizations whose annual gross receipts are normally $50,000 or less are required to electronically submit Form 990-N, also known as the e-Postcard, unless they choose to file a complete Form 990 or Form 990-EZ instead. The e-Postcard is relatively easy to complete. All you need is eight items of basic information about your organization. Please go to How to File Your 990N (e-postcard) for more information.
  
  The 990 is due by the 15^th day of the 5^thmonth after the Organization's accounting year ends.
  
  
  
• Issue 1099 forms to applicable individuals or businesses by January 31st of each year. If 1099 forms are issued, send information to the IRS by February 28th, of each year.  For more information on when and how to file Form 1099-MISC go to About Form 1099-MISC, Miscellaneous Income

For more information about these federal requirements, please refer to Federal Regulatory Information.

State Regulations

The following items need to be done only once since the origination of the Parent Organization

•  Determine whether your organization has obtained a Texas Sales Tax Permit.
  
  
  
• Determine whether your organization has obtained an exemption from sales tax from the Texas State Comptroller's Office.
  
  Reminder: Only those organizations with a limited tax-exemption from the Texas State Comptroller's Office are entitled to the two (2) “one-day, tax-free” sales/auction days.  For more information about tax free days refer to Taxes - Fundraisers
  
  NOTE: Please refer to Tax Exemptions For Qualified Organizations for more information about applying for sales and franchise tax exemptions.
  
  
• Determine whether your organization is incorporated:
  
  If the Organization is incorporated, determine whether your organization has obtained an exemption from Texas franchise tax from Texas State Comptroller's Office.
  
  NOTE: Please refer to Tax Exemptions For Qualified Organizations for more information about applying for sales and franchise tax exemptions.
• The following item is applicable each school year or calendar year.
• File the Organization's Texas Sales and Use Tax Return as required.
  
  The Texas State Comptroller's Office determines whether the report needs to be filed quarterly or annually and the reporting schedule is subject to change.
  
  
  
• File the Organization's Texas Franchise Tax Return if required.

For more information about these state requirements, please refer to State Regulatory Information.

Parent Organization  Guidelines

As your Organization President or Treasurer changes, show the new officers how to access the Parent Organization Guidelines handbook on the Waco ISD website. And please submit information about the new officers to the District's Internal Audit department and the School Principal or Administrator (if the Parent Organization is not located at a school, as delineated in number 1 above.)