I am trying to decide the best way to set up an account for a high school choir booster club. Going through the school is a major hassle and takes forever to get money when we need it. We can use the Educational Foundation as a pass-through, and folks who donate will get a tax deductible receipt, however, we have to wait up to one week for a check. If we set up a booster account just through a bank, then it is not tax deductibe if someone makes a donation, but the money would be readily accessible. Any legalities here I should know about? Can you advise what is the best way to handle this?
There is a real possibility that your school district has rules on booster clubs and other organizations that want to help student groups. Check them out first, if you haven't done so already.
If your boosters club hasn't yet obtained an employer ID number from the IRS, you will be asked to do so if you decide to go the independent route. You don't need to have employees or have a legal entity status to do that. If you are not a legally chartered entity under state law, the bank will require that whoever opens the account supplies personal identification information. That information may be required in any event.
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