The Northeast Georgia Council

Yes -- Unit funds should be deposited in a checking or savings account that requires two signatures on every check or withdrawal. The unit leader could be one of the signees but it is recommended it be a committee person. It could be that the unit leaders have a petty cash fund (the limit set by the committee), which is accounted for with receipts each month.
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All units need a tax ID number (also referred to as an "EIN" - Employer Identification Number). Units should NOT use the social Security number of an adult leader. If they do, the IRS will attribute all banking transactions, unit purchases, etc. to that leader as an individual. Units may use the tax ID number of their chartering organization, if given permission. This may be especially useful for the unit if that organization is tax-exempt. Most units obtain their own tax ID number by completing IRS Form SS-4. There is no cost involved. The current form and instructions are available on the IRS Web site - www.irs.gov. Search for "SS4 online". The EIN will be issued immediately upon completion. Units may not use the tax ID number of the local Boy Scout Council. Doing so could jeopardize the council’s tax exempt status.
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The unit committee is responsible for the units’ finances. A treasurer is assigned and the committee chairperson should receive the bank statements to reconcile monthly. All unit funds should pass through the bank account; this includes, but is not limited to, dues, money from unit fundraisers, product sales, and gifts. An exception might be registration fees which are collected as part of an organized School Night program. In this case, fees are collected by district/council representatives and are transmitted to the Scout service center.
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Yes - it is suggested that your unit insure its’ equipment. Remember, the chartered organization owns the unit, and all funds used by the unit remain the responsibility of the chartered organization as long as the charter issued by the BSA remains in place. It is recommended that annually an inventory be given to the chartered partner of the unit’s equipment.
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For all unit fund raising -- All unit money-earning projects must be approved in advance by using BSA’s Unit Money-Earning application. Approval must be made by the chartered organization and the local council. Units should submit the application at least two weeks before the project is planned to begin, and unit leaders should review the BSA money-earning rules on the back of the form.
Only the fall Popcorn Sale and spring Camp Card Sale are approved money-earning projects where youth members may wear their BSA field uniforms.
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That depends on who sponsors your pack, troop or unit. The only time a unit can be considered tax-exempt is if its sponsoring organization is also tax-exempt.
The BSA National Council grants a charter to religious organizations, service clubs, businesses, and others who want to sponsor a Scout unit. A unit is actually "owned" by its chartered organization. Chartered organizations vary widely in tax status, but the tax status of your unit is the same as that of your chartering partner.
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In 2008 the IRS introduced a new, abbreviated filing for small tax-exempt organizations with annual gross receipt of less than $25,000: Form 990-N. The BSA national office consulted with the IRS and outside counsel about how this new filing requirement applies to Cub Scout packs, Boy Scout troops, Venturing crews, and other units. In their opinion, most Scout units do not have the file the new Form 990-N. For most units, no filing is required.
The only exception is for the very small number of units that have filed for separate, federal tax-exempt status under Section 501(c)(3) of the Internal Revenue Code. Those units must file either Form 990-N (if their annual gross receipts were less than $25,000) or the more detailed Form 990 or 990EZ (if annual gross receipts were $25,000 or more).
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No. The IRS only allows local councils (and council trust funds) to be included under the BSA group exemption. Packs, troops, and other Scout units cannot be included under the BSA group exemption because they "belong" to their chartering organization. (Note: tax issues for Girl Scout troops are handled differently by the IRS because of how their cookie sales are structures).
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The "GEN" is the Group Exemption Number for the BSA. As discussed, only councils are covered under the BSA group exemption. Units cannot use this number. However, once your unit receives an EIN, the unit may still qualify for a number of state and sales tax exemptions as a non-profit organization under your state laws. Check with your own state -- this varies widely across the country.
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Units should not incorporate or apply for their own tax-exempt status. For one thing, units are not legal entities. Even if they were, this is an expensive and time-consuming process. Units are only permitted to raise funds through approved unit money-earning projects. Units could lose their charter if they tried to get their own tax-exempt status and solicit tax deductible gifts.
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No. Simply put, units are not permitted to solicit any gifts. Both the Charter and Bylaws and the Rules and Regulations of the BSA make this very clear -- only local councils may solicit individuals, corporations, United Ways, or foundations for gifts in support of Scouting. Units, unit leaders, and youth members may not solicit gifts in the name of Scouting or in support of unit needs and activities. Units are also prohibited from soliciting gifts on their Websites.
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No -- your unit "belongs" to your chartering organization, not to your local council. IRS guidelines prohibit any charity from accepting gifts that are passed through to a person or unrelated entity. Doing so could jeopardize the council’s tax-exempt status.
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Employee incentive awards and volunteerism grants usually can NOT go to a pack, troop or unit, due to the company’s giving restrictions. Corporate donations often can only go to charities that are 501(c)(3) charities, and many units are not chartered by tax exempt charities. Also, many companies won’t make gifts to religious organizations. If a unit is tax exempt, it’s often because it’s chartered to a church, synagogue, etc. - so they couldn’t receive corporate funds either. Of course, corporate awards and grants may go to any local council.
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