Retention for Scouting Financial Records - and other clarification
A note from Scoutmaster (ret) Frank Knickerbocker following University of Scouting, 20 Feb 2010:
Fellow Scouting Adults, (attendees at BSC 403 Troop Recordkeeping, at NCAC University of Scouting, 20 February 2010)
Greetings! One of our class mates asked about record retention requirements for scouting records. In the course of researching this question I improved my understanding of scouting unit posture with respect to the Internal Revenue Service, the Chartered Organization, and the National and Local Councils. Here is the explanation:
Tax Exempt Status and EIN
Thanks for the question, as always, I learned a little more. I hope you maintain your attendance at the University of Scouting and broaden your interest and your involvement.
with respect
Frank Knickerbocker, College of Boy Scouting PhD
NCAC University of Scouting
Fellow Scouting Adults, (attendees at BSC 403 Troop Recordkeeping, at NCAC University of Scouting, 20 February 2010)
Greetings! One of our class mates asked about record retention requirements for scouting records. In the course of researching this question I improved my understanding of scouting unit posture with respect to the Internal Revenue Service, the Chartered Organization, and the National and Local Councils. Here is the explanation:
- Keep records for as long as you need to perform the functions necessary to support your scouts. In my case, I recently needed to research a scout's financial transactions from 5 years back. A scout will generally pass through a unit, as a scout, for a period from approximately 11 years to 18 years - 7 total. This is not a rule - you have the flexibility to specify your retention period, unless your unit employs someone, in which case the income tax requirement would drive the retention of records. IRS Publication 4221 at http://www.irs.gov/pub/irs-pdf/p4221pc.pdf
addresses record retention for charitable non-profits on page 30.
Tax Exempt Status and EIN
- Your unit's Employer Identification Number (EIN), required for a checking account, may be something you use with the consent of your chartering organization, or may have defined as unique to your unit. The important bit with respect to your council is that the legal tax status of your unit is an association of your chartered organization, not with your local or the national council. In other words, a unit may inherit its tax exempt status from its chartered organization, but may not inherit this status from the local or national council. This is treated in an excellent fashion on the Blue Ridge Council's web site at http://www.blueridgecouncil.org/brcic/Finance.aspx. Note that the local council is empowered to approve all fundraising done in the name of scouting, and, as shown in the class briefing at slide 32, has a process and form to address this approval.
Thanks for the question, as always, I learned a little more. I hope you maintain your attendance at the University of Scouting and broaden your interest and your involvement.
with respect
Frank Knickerbocker, College of Boy Scouting PhD
NCAC University of Scouting
