scouts-l Mail Archive for November of 1999: Re: Unit Bank Account question
Ted Burton (scouter@CONSULTBURTON.COM
Thu Nov 04 1999 - 19:47:42 CST
At 14:18 -0500 on 11/3/99, Chris Summers spake about Unit Bank
Account question thus:
>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 [meet a big transportation expense or
>repair bill] ...
>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 do not know of a fixed rule.
The IRS has its own rules about retention of funds and taxes on
private foundations which gets us back to who the charter partner is;
this is one area in which having troop funds treated as part of the
charter partner's funds helps avoid taxes. I am not familiar with the
specifics, but there is a certain amount of retained money which
triggers a tax. Uncle was worried that people were setting up
essentially phoney outfits to manage their investments tax free. This
may also be an area of don't ask and don't tell.
Asst Scoutmaster, District Committee, District Commissioner,
Lewis-Clark Trail District, Inland Northwest Council 611, & 'a good
ol' Fox too'; Es Kaielgu Lodge 311, Tseminicum Chapter, Vigil,
mailto:firstname.lastname@example.org ; and Macintosh fan. Take a look at