Re: SCOUT Accounting Paybacks
John T. Peeples (john.peeples@STJUDE.ORG)
Thu, 19 Jun 1997 13:33:03 -0500
On Thu, 19 Jun 1997, Young, Lawrence S. wrote
> Does your troop really have tax-free status? Did your CPA
> determine that?
>From what I've been told, the Scout unit takes on the "tax-status" of its
Chartering Organizaion. In our case we were told by the treasurer of our
church (an officer at a local bank) that since anything the pack or troop
purchased was really "owned" by the Chartering Organization - the church -
then if the church would be exempt from sales tax on the purchase the
scouting unit would be also. On several major purchases (ie: Tents,
cooking equipment, etc.) we have not been charged sales tax, either by
purchasing from a vendor that simply did not charge the tax (he may still
have been liable for sales tax and paid it himself) but more often we
included a copy of the tax exempt notice of the church with our check
that includes the Troop # and Church name. We've not been as tight on
smaller purchases. Also, our local Scout Shop does not charge tax for
items purchased by the unit either for unit use or to be given to Scouts
Another thought - when we established our bank account the Church
treasurer (and a charter member of our Troop) used the church's tax
identificaion number (was instructed to do so by the bank); it's never
been an tax issue - we never hold a very large balance - but I was told
that from a tax point of view the church "owned" the account.
Other than sales tax, we've never had enough money to be an issue to the
tax people. I'm not a tax accountant (but did play like one a long time
ago!); maybe someone else can give a technical answer - I could research
it but the hourly rate would be unreasonable <grin!>
Just my (untaxable) 2 cents worth.
John T. Peeples, Scoutmaster Troop / Pack 231
First Presbyterian Church, West Memphis, Arkansas
DO YOUR BEST for others, expect the best FROM others; it really does work!
Terry Howerton Sakima Group, Inc. SCOUTER Magazine Kansas City