Paying People
Q: Booster wants to pay a coach $1,500 directly for extra hours. OK or IN TROUBLE?
A: ❌ IN TROUBLE – Boosters may never pay district employees directly. Must go through district payroll.
Q: Treasurer uses personal Venmo for fundraiser money “just for today.”
A: ❌ IN TROUBLE – Personal apps create audit and liability risk.
Q: Principal signs booster checks to “help out.”
A: ❌ IN TROUBLE – Principals may not handle booster money.
Q: Students who raise more money get better gear.
A: ❌ IN TROUBLE – Violates equity rules.
Q: Booster has bylaws, officers, and monthly reconciliations.
A: ✅ OK – This is compliance.
Q: Booster hires a strength trainer to work with students and pays them directly.
A: ❌ IN TROUBLE – Anyone working with students must be cleared through District HR first.
Q: Funds go directly into booster bank account and are deposited promptly.
A: ✅ OK – Proper financial handling.
Q: Principal approves fundraisers and reviews booster documents.
A: ✅ OK – This is appropriate oversight.
Q: Participation is allowed even if a family cannot donate.
A: ✅ OK – Donations must be voluntary.
Q: Officers change but bank signature card is never updated.
A: ❌ IN TROUBLE – Major audit finding.
Q: Booster donates money to the district to cover coaching stipends and the district pays through payroll.
A: ✅ OK – This is the correct compliant method.
Q: Booster holds cash for a week before depositing.
A: ❌ IN TROUBLE – Deposits must be prompt.
Q: District employee is an authorized signer on booster bank account.
A: ❌ IN TROUBLE – Employees cannot control booster finances.
Q: Booster tracks how much each student raises for recognition only.
A: ⚠️ RISKY – Recognition is okay, but benefits cannot be tied to totals.
Q: Booster keeps receipts and presents financials at meetings.
A: ✅ OK – Proper transparency.
Q: Booster pays a walk-on coach a small stipend directly because “it’s easier.”
A: ❌ IN TROUBLE – Walk-on coaches are district employees once hired.
Q: Checks are written with only one signature to save time.
A: ❌ IN TROUBLE – Two signatures required.
Q: Teacher advises booster but does not handle money.
A: ✅ OK – Advisory role is fine.
Q: Booster pays for awards, events, and equipment for the whole team.
A: ✅ OK – Benefits the program as a whole.
Q: Decisions are made informally without meeting minutes.
A: ❌ IN TROUBLE – Documentation required.
Q: Booster pays a volunteer parent $700 for helping the program all year.
A: ❌ IN TROUBLE – Over $600 requires 1099 and proper documentation. Cannot pay informally.
Q: Booster mixes fundraiser money into ASB account temporarily.
A: ❌ IN TROUBLE – Funds may never be commingled.
Q: Booster uses the district EIN for purchases.
A: ❌ IN TROUBLE – Boosters must use their own EIN.
Q: Booster requires a “mandatory donation” to join.
A: ❌ IN TROUBLE – Donations can never be required.
Q: Booster loses track of passwords and financial records when officers leave.
A: ❌ IN TROUBLE – Records and access must transfer.