scouts-l Mail Archive for November of 1999: Unit Bank Account
Olan Watkins (OlanWatkins@COMPUSERVE.COM
Thu Nov 04 1999 - 15:00:43 CST
Getting back to the question of the Troop that has $7,000 in a plain
checking account and are saving to purchase a new Troop truck.
With out a doubt, they would be better off to invest 80 to 90 percent of
those funds into some sort of short term interest paying account such as
six month CDs, treasure bonds, or just a bank or credit union savings
However, to do so could make their accounting and paper work grow quite a
If they have an interest paying account, that interest gets reported to the
IRS and then has to show up on some one's accouting to the IRS. The
Scoutmaster or Troop Treasure can not just say, what the heck, use my SS
number on the account or they will get in trouble with the IRS. If they use
the church or other non profit sponsor's tax number, then they need to work
with the sponsor to make sure that the Troop income is included in the
sponsor's accounting system.
If the Troop has their own tax ID number, they need to use that number and
make sure that the interest is reported under that number.
YIS, Olan Watkins