Finance

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Unit Finance

Suggested Unit Finance Operations

1. Unit funds must be deposited in a checking account requiring 2 signatures on every check. Family members must not approve payment or be second signature.

2. Financial institutions, including banks, require an Employer Identification Number (EIN) on all accounts; therefore, units should use the EIN of their chartering institution or make application to the IRS for their own number.

3. Finance is the unit committee's responsibility. A treasurer is assigned and the committee chairperson should receive the bank statement to reconcile. All money received by the unit runs through unit's checking account. Additional information on the treasurer can be found in the Pack Record Book No. 3819 or the Troop Financial Record Book No. 6508.

4. All unit money-raising projects must be approved in advance by using the BSA Unit Money Earning Application.

5. The Chartered Organization should audit the unit finances annually and make this data available to the membership of the chartered organization.

6. It is recommended that the unit leader have a petty cash fund (the limit set by the committee) which is accounted for with receipts each month.

7. It is recommended that units have a unit account at the council service center.

8. All unit funds (including den and patrol) must run through the bank account; this includes but is not limited to dues, fundraising, sales, and gifts.

Federal Tax Status of Scout Units

The IRS recognizes the Boy Scouts of America National Council as tax exempt under IRS Section 501(c)(3). Through an IRS-granted group exemption, this status is extended to local councils and council trust funds. The tax exempt status of the Boy Scouts of America does not extend to, nor include, any Scout packs, troops, crews or other units, and no Scout units may be included within the BSA group exemption for the National Council. They are not subordinate organizations, and this is an IRS restriction.

Units must obtain their own Employer Identification Number (EIN) or use the EIN of the chartering organization. Under no circumstances can a unit use either the EIN of the council or the BSA's group exemption number for purposes of gifts, federal taxes, or other related purposes. If a unit's chartering organization is tax exempt, and it allows the unit to use its EIN (or includes the unit under their group exemption), the unit could then be considered tax exempt as a subordinate of that organization. Gifts to the unit would be tax deductible as gifts to the chartering organization.

Also, units should not apply for their own independent tax exempt status. Article XI or the BSA Charter and Bylaws states that 'Contributions shall be solicited in the name of the Boy Scouts of America only through or by the authority of the Corporation and shall be limited to the National Council or chartered local councils....' Also, the BSA Rules and Regulations vests in each council power to 'control the raising and expenditure of all funds for local Scouting work in their jurisdiction'.

Application for an Employer Identification Number

IRS Form SS-4 is used to request an employer ID number from the IRS. This is needed to open a bank account for a Scouting unit unless the unit is allowed to use the EIN of the chartering organization (see above). This IRS Form SS-4 Acrobat (.pdf) file above can be filled in on computer from with Acrobat, but the Acrobat Reader will not allow a user to save the fill-in form to disk.

This link takes you to a SS-4 form that is not filled in on computer. To fill out the form please follow the following BSA Instructions (2 Page Adobe PDF File) to ensure the form is filled out properly for your Pack, Troop, Crew, etc. NOTE: these are a complement to the IRS Instructions below.

This link takes you to the IRS Instructions (6-page Acrobat document) are available to help units complete the form. The process is relatively simple, and there is no cost.

James West Fellowship Award

The James West Fellowship Award recognizes registered Scouters and youth for support of scouting with a knot that may be worn on the uniform. This award can be given through a group that wants to recognize an individual for efforts that are not honored in other ways and makes a $1000 contribution on their behalf.

United Way

The Indian Waters Council is a partner with several United Way agencies in South Carolina:

Bamberg, Colleton & Hampton Counties United Way

Edisto United Way

Kershaw United Way

United Way of the Midlands

United Way funding accounts for approximately 9% of the Indian Waters Council's annual budget.