IndianFan
Web Guy
May 18, 2008, 12:50AM
Booster clubs face budget cuts in economic slump
By JENNY DIAL
Copyright 2008 Houston Chronicle
Running a high school booster club isn't easy. There is no Booster Clubs for Dummies book available, and the process can be confusing. Here are the basics for starting a booster club and running it within University Interscholastic League and Internal Revenue Service guidelines:
• Most booster clubs file for tax-exempt status as nonprofit organizations, using Form 1023 from the IRS. Once nonprofit status is established — which can take two to three years — clubs must file a Form 990 tax return every year. Forms aren't necessary if a club makes less than $25,000 a year.
• Clubs can't choose how their contributions are spent. They can only make suggestions.
• Schools may have multiple clubs, and those clubs can be sports-specific.
• Clubs can't give money to a student unless it is an earned scholarship. In dealing with students, clubs must follow amateur rules established by the NCAA.
JENNY DIAL
As gas prices hit record highs and fears of an economic recession grow, Houston-area schools face the same budget cuts that have become commonplace in other parts of the country.
The money needed to fund high schools and their extracurricular activities doesn't grow on the trees in Memorial Park. It can, however, be found in the subdivisions popping up in Sugar Land and Katy and in the townhomes and condos near Westheimer and Kirby.
From that fertile ground comes the latest line of defense against the financial hardships high school sports face — athletic booster clubs.
But a Chronicle survey of three of the Houston-area's largest school districts suggests this new solution is besieged with age-old problems.
Financial data reviewed by the Chronicle in response to a Freedom of Information Act request shows booster clubs continue to further the financial divide between urban and suburban high schools.
Katy High School, which budgeted $244,065 for athletics in 2006-07, received an additional $372,444 from its booster club. The club serves all Katy High School sports.
The athletic department at Lamar received $285,345 from its booster club in the same period, while Clements received $181,614.
However, 19 of 22 Houston Independent School District high schools (Kashmere was unavailable) either don't have athletic booster clubs or have clubs that provided less than $25,000 in support. Four of the six clubs in the Katy ISD earned more than $50,000, while eight of the 10 in Fort Bend ISD brought in more than $32,000.
"We aren't suffering to support our athletic programs right now, but we are definitely always in need," Furr football coach Cornell Gray said.
Big disparities
The divides created by outside spending are sometimes vast.
A bond issue paid for a recent expansion of the Katy High School weight room and a new baseball stadium. But the school's athletic booster club chipped in thousands of dollars for new weight equipment and added concession stands and minor improvements to the new baseball stadium.
Wheatley High School, which has one of the most successful athletic programs in HISD, used a park across the street for softball practice in 2007 and has a weight room similar in size to a small classroom.
"I think we need booster clubs — they make a big difference for schools," HISD athletic director Darryl Wade said. "We have a lot of schools that don't even have booster clubs at all, and I'd like for every school to have one."
Beyond the inequalities caused by booster-club spending, there also is the question of oversight.
There are gray areas involving the rules, and clubs are handled differently from school district to school district.
As recently as last summer, Bellaire High School's baseball booster clubs were under the microscope for their spending and fund-raising procedures.
Last July, the Chronicle reported the Bellaire baseball booster clubs were having issues with how money was spent and the pressure parents faced to donate.
Most violations minor
University Interscholastic League athletic coordinator Mark Cousins said it isn't rare for athletic booster clubs to come under fire for violations. There are several instances each year, but most are minor, he said.
"It is usually about what they spent money on, and it's usually small, but violations happen all the time," he said.
The UIL suggests booster clubs turn in regular financial statements to the school district but doesn't require them to do so.
Of the three school districts sampled by the Chronicle, Fort Bend ISD and Katy ISD had year-by-year booster-club information on file with the school district office. Houston ISD, however, does not require its booster clubs to submit such paperwork.
"We are adding policies and making changes about how to monitor that right now," said Wade, who is in his second year as HISD's athletic director. "It's tough with so many schools, but that is something we are working on getting a handle on."
Booster clubs aren't just slapped with UIL violations. A few years ago, the Westside athletic booster club paid a $1,000 fine to the IRS for not filing a tax return.
Most booster clubs file for tax-exempt status as nonprofit organizations and, with some exceptions, must file a Form 990 tax return every year, tax attorney Ron Webster said.
"It's tough to come in and know how to do all of this," Katy booster club co-president Beth Sumrall said. "We were lucky enough to have past presidents inform us of all the rules."
For the Katy booster club, the football game program is the biggest moneymaker. The club earns most of its money from the sale of ads in the program and the sales of programs at games.
"We are in a fortunate situation where everyone wants to be a part of Katy football, so every business will buy an ad and every parent and fan will buy a program," Katy booster club co-president Ken Sumrall said. "Not every school is going to be in that situation."
Take Wheatley, for example. While the Wildcats also feature a rich tradition, they do not have the resources of Katy. With more large corporations inside Houston proper, Wheatley lacks some of the support Katy gets from mom-and-pop businesses. As a result, Wheatley, with a basketball program that has made 25 state-tournament appearances, has a booster club that earned less than $25,000.
"We aren't lacking success in our athletic programs — look at track and baseball and softball right now," Wade said. "We aren't lacking the tradition. It's just the financial support."
Some booster clubs don't need the support of local businesses. Instead, they count on benefactors. The Lamar High School athletic booster club made more than $284,000 of its $285,345 in total revenue from direct donations and contributions — including alumni and parents — to the school.
Variety in spending
Booster clubs spend their money on a variety of things, ranging from basketballs to scholarships.
Booster clubs raise funds, hold public meetings and determine the needs of the athletic department. The booster club then makes suggestions, and the athletic department can spend the money however it wants.
Several schools have multiple booster clubs. The Woodlands High School has clubs for football, cross country, track and field, volleyball, wrestling, swimming and diving, and girls basketball. The football booster club made more than $134,000 last year, with that money going to The Woodlands football team.
The majority of the club's spending was on equipment and college scholarships.
"We encourage multiple booster clubs per sport," the UIL's Cousins said.
For schools with no booster clubs or those that bring in little revenue, wish lists are growing.
The Davis High School booster club earns about $5,000 a year, and those funds are spent quickly.
"If I had more money, I'd get us scouting programs and tackle dummies and just try to give our kids more," Davis coach Chuck Arnold said. "(If I had $30,000 to spend), I don't think you'd be really able to notice, because I would just add normal football practice items to our program — just more of the basics."
jenny.dial@chron.com
http://www.chron.com/disp/story.mpl/front/5788035.html
Booster clubs face budget cuts in economic slump
By JENNY DIAL
Copyright 2008 Houston Chronicle
Running a high school booster club isn't easy. There is no Booster Clubs for Dummies book available, and the process can be confusing. Here are the basics for starting a booster club and running it within University Interscholastic League and Internal Revenue Service guidelines:
• Most booster clubs file for tax-exempt status as nonprofit organizations, using Form 1023 from the IRS. Once nonprofit status is established — which can take two to three years — clubs must file a Form 990 tax return every year. Forms aren't necessary if a club makes less than $25,000 a year.
• Clubs can't choose how their contributions are spent. They can only make suggestions.
• Schools may have multiple clubs, and those clubs can be sports-specific.
• Clubs can't give money to a student unless it is an earned scholarship. In dealing with students, clubs must follow amateur rules established by the NCAA.
JENNY DIAL
As gas prices hit record highs and fears of an economic recession grow, Houston-area schools face the same budget cuts that have become commonplace in other parts of the country.
The money needed to fund high schools and their extracurricular activities doesn't grow on the trees in Memorial Park. It can, however, be found in the subdivisions popping up in Sugar Land and Katy and in the townhomes and condos near Westheimer and Kirby.
From that fertile ground comes the latest line of defense against the financial hardships high school sports face — athletic booster clubs.
But a Chronicle survey of three of the Houston-area's largest school districts suggests this new solution is besieged with age-old problems.
Financial data reviewed by the Chronicle in response to a Freedom of Information Act request shows booster clubs continue to further the financial divide between urban and suburban high schools.
Katy High School, which budgeted $244,065 for athletics in 2006-07, received an additional $372,444 from its booster club. The club serves all Katy High School sports.
The athletic department at Lamar received $285,345 from its booster club in the same period, while Clements received $181,614.
However, 19 of 22 Houston Independent School District high schools (Kashmere was unavailable) either don't have athletic booster clubs or have clubs that provided less than $25,000 in support. Four of the six clubs in the Katy ISD earned more than $50,000, while eight of the 10 in Fort Bend ISD brought in more than $32,000.
"We aren't suffering to support our athletic programs right now, but we are definitely always in need," Furr football coach Cornell Gray said.
Big disparities
The divides created by outside spending are sometimes vast.
A bond issue paid for a recent expansion of the Katy High School weight room and a new baseball stadium. But the school's athletic booster club chipped in thousands of dollars for new weight equipment and added concession stands and minor improvements to the new baseball stadium.
Wheatley High School, which has one of the most successful athletic programs in HISD, used a park across the street for softball practice in 2007 and has a weight room similar in size to a small classroom.
"I think we need booster clubs — they make a big difference for schools," HISD athletic director Darryl Wade said. "We have a lot of schools that don't even have booster clubs at all, and I'd like for every school to have one."
Beyond the inequalities caused by booster-club spending, there also is the question of oversight.
There are gray areas involving the rules, and clubs are handled differently from school district to school district.
As recently as last summer, Bellaire High School's baseball booster clubs were under the microscope for their spending and fund-raising procedures.
Last July, the Chronicle reported the Bellaire baseball booster clubs were having issues with how money was spent and the pressure parents faced to donate.
Most violations minor
University Interscholastic League athletic coordinator Mark Cousins said it isn't rare for athletic booster clubs to come under fire for violations. There are several instances each year, but most are minor, he said.
"It is usually about what they spent money on, and it's usually small, but violations happen all the time," he said.
The UIL suggests booster clubs turn in regular financial statements to the school district but doesn't require them to do so.
Of the three school districts sampled by the Chronicle, Fort Bend ISD and Katy ISD had year-by-year booster-club information on file with the school district office. Houston ISD, however, does not require its booster clubs to submit such paperwork.
"We are adding policies and making changes about how to monitor that right now," said Wade, who is in his second year as HISD's athletic director. "It's tough with so many schools, but that is something we are working on getting a handle on."
Booster clubs aren't just slapped with UIL violations. A few years ago, the Westside athletic booster club paid a $1,000 fine to the IRS for not filing a tax return.
Most booster clubs file for tax-exempt status as nonprofit organizations and, with some exceptions, must file a Form 990 tax return every year, tax attorney Ron Webster said.
"It's tough to come in and know how to do all of this," Katy booster club co-president Beth Sumrall said. "We were lucky enough to have past presidents inform us of all the rules."
For the Katy booster club, the football game program is the biggest moneymaker. The club earns most of its money from the sale of ads in the program and the sales of programs at games.
"We are in a fortunate situation where everyone wants to be a part of Katy football, so every business will buy an ad and every parent and fan will buy a program," Katy booster club co-president Ken Sumrall said. "Not every school is going to be in that situation."
Take Wheatley, for example. While the Wildcats also feature a rich tradition, they do not have the resources of Katy. With more large corporations inside Houston proper, Wheatley lacks some of the support Katy gets from mom-and-pop businesses. As a result, Wheatley, with a basketball program that has made 25 state-tournament appearances, has a booster club that earned less than $25,000.
"We aren't lacking success in our athletic programs — look at track and baseball and softball right now," Wade said. "We aren't lacking the tradition. It's just the financial support."
Some booster clubs don't need the support of local businesses. Instead, they count on benefactors. The Lamar High School athletic booster club made more than $284,000 of its $285,345 in total revenue from direct donations and contributions — including alumni and parents — to the school.
Variety in spending
Booster clubs spend their money on a variety of things, ranging from basketballs to scholarships.
Booster clubs raise funds, hold public meetings and determine the needs of the athletic department. The booster club then makes suggestions, and the athletic department can spend the money however it wants.
Several schools have multiple booster clubs. The Woodlands High School has clubs for football, cross country, track and field, volleyball, wrestling, swimming and diving, and girls basketball. The football booster club made more than $134,000 last year, with that money going to The Woodlands football team.
The majority of the club's spending was on equipment and college scholarships.
"We encourage multiple booster clubs per sport," the UIL's Cousins said.
For schools with no booster clubs or those that bring in little revenue, wish lists are growing.
The Davis High School booster club earns about $5,000 a year, and those funds are spent quickly.
"If I had more money, I'd get us scouting programs and tackle dummies and just try to give our kids more," Davis coach Chuck Arnold said. "(If I had $30,000 to spend), I don't think you'd be really able to notice, because I would just add normal football practice items to our program — just more of the basics."
jenny.dial@chron.com
http://www.chron.com/disp/story.mpl/front/5788035.html
