scouts-l Mail Archive for November of 1999: Re: Unit Bank Account question
Paul S. Wolf (PaulWolf@CUYCTYENGINEERS.ORG
Wed Nov 03 1999 - 15:14:30 CST
Chris Summers wrote:
> I work with a troop in my district that has over $7000 in their
> treasury. The money has been growing over the years as they are
> eventually going to have to purchase a new troop vehicle or cover
> major repairs (I believe they are driving a 1966 GMC stakebed truck).
> The money has been saved after ongoing fundraisers where the troop's
> immediate needs are always met and what is left over goes in this
> fund, in other words, they are not doing special fundraising for this.
> I was told by a trainer at a Council run training session that this is
> against BSA policy and that in order to comply with IRS non profit
> guidelines they should clear their accounts at year's end. I've never
> seen anything on this. The money is in the troop checking account.
> Could they invest the money to make a higher return on it? Anyone know
> the answer or want to venture a guess?
> Chris in Houston
Common Urban Legend. Non-profits do NOT have to have zero balances
ever, except at the point they dissolve. They can't DISTRIBUTE money to
their members, of course. Although not usually in small Scout units, it
is a common practice (and just plain good sense) for non-profit
organizations to have a capital investment fund for just such long term
OTOH, they probably should invest the money in an account that earns a
higher return, unless they need the money quite soon.
Paul S. Wolf, PE mailto:Paul.S.Wolf@alum.wpi.edu