Does your squadron have a Booster Club?

[The Infamous Meerkat]

I'm trying to find any precedent or other squadrons that currently have a booster club... I only recently got back to my home state from the military and found that my squadron now has (among other things) a booster club of SM's that have appointed themselves the de facto finance gurus...

Anyone else have experience with anything like this? Is it good, bad, ugly?

[Walkman]

In my last unit, one of the former hi-speed cadets who turned SM (and is also now an O-3 Marine) created a non-profit booster club type of organization to do fund raising for the squadron. He created a legal non-profit entity that had a board of directors (which I was for on for a time). I moved about a year after it got going, so I can't give you a long-term report, but in the time I was there, we did two fundraisers (ruck march and formal dinner) as well as had two former cadets give small "endowments" to the fund to get things started.

I'm too lazy at the moment to look it up, but I seem to remember there being some new regs that outlawed these kind of things, though...

[Eclipse]

I'm trying to find any precedent or other squadrons that currently have a booster club... I only recently got back to my home state from the military and found that my squadron now has (among other things) a booster club of SM's that have appointed themselves the de facto finance gurus...

A venti says they are skirting the intent, if not directly violating the WBP rules.

There's is 100%, absolutely no reason for a unit to have a booster club.  They are a worse idea then those SAR hats in the other thread.

I have yet to see a single case where a legitimate reason was given for having one, and generally they are because people think
wing is going to "steal ma munies" or because they want to fund-raise in a way that wold give a Wing CC a fit.

There is also no practical way for a booster club to function independently in the way the regs require.  "Winks and nods" don't generally stand up to IRS scrutiny.

[Flying Pig]

I'm trying to find any precedent or other squadrons that currently have a booster club... I only recently got back to my home state from the military and found that my squadron now has (among other things) a booster club of SM's that have appointed themselves the de facto finance gurus...

A venti says they are skirting the intent, if not directly violating the WBP rules.

There's is 100%, absolutely no reason for a unit to have a booster club.  They are a worse idea then those SAR hats in the other thread.

I have yet to see a single case where a legitimate reason was given for having one, and generally they are because people think
wing is going to "steal ma munies" or because they want to fund-raise in a way that wold give a Wing CC a fit.

There is also no practical way for a booster club to function independently in the way the regs require.  "Winks and nods" don't generally stand up to IRS scrutiny.

I gotta agree.   If the parents want to help, join as patron or sponsors and assist the Sq with doing their own fund raisers.  Or here is an idea.....just show up and support the Sq at the fund raisers we already do!!! Parents bring the school sports mindset to CAP and it doesn't apply.   Parents of cadets in my unit briefly started one because of parents believing that every spare cent the Sq had needed to be spent on funding the cadets to go to any and every activity under the sun.  Parents wanted to start a booster club that would be used to pay for cadet activities.  Cadets could apply to the non-profit for scholarships.  My issue was that if we were going to spend the time to raise money, it needed to go to the unit as a whole.  Parents had a very hard time understanding that without the Squadron, there is no cadet program.  The booster members wanted to decide who got "scholarships" to activities, vs the squadron staff deciding.  They were wanting cadets to participate in fund raising activities sponsored by the Booster Club, ie. non-CAP activity.
As the SqCC, I dissolved the Booster Club. Yip..... I really did.  Basically by telling them that they were not associated with our squadron so good luck explaining to the IRS what your booster club is for when I deny any knowledge of you.   Parents were not going to be allowed to run my unit though controlling money via a separate non-profit.  Other members who supported it were also looking for a pool of cash that could be spent without the knowledge, direction or sanction of the commander.

Money needs to come in to the Squadron and then the Squadron staff decides how it gets spent.  If the unit has a cadet program I would imagine the DCC and the other seniors in the unit will have a voice.  But parents or other members not on the command staff or on the finance committee controlling the cadet program and other members indirectly by waving money at them though a booster club was a no-go for me.  Perhaps others have had better dealings.  If you are going to support the squadron, then join as a member and raise money as a member to support it as a whole through approved CAP means.

People create booster clubs in CAP as a way to circumvent the commander and CAP regs.   But heh..... that was just my experience. I didnt even really care about the IRS issues (it never got that far)  My issues were the issues of people circumventing the command staff. 

[Devil Doc]

Our Squadron has a booster club. Works out great for Cadet Activities. The SMs dont use the money as much because we arnt nearly as active as the Cadets. They use it for NON CAP activities, so it works out great for them.

[Eclipse]

Our Squadron has a booster club. Works out great for Cadet Activities. The SMs dont use the money as much because we arnt nearly as active as the Cadets. They use it for NON CAP activities, so it works out great for them.

How could they use it for non-CAP activities?

[Flying Pig]

Our Squadron has a booster club. Works out great for Cadet Activities. The SMs dont use the money as much because we arnt nearly as active as the Cadets. They use it for NON CAP activities, so it works out great for them.

Ummm...... The booster club is raising money to assist the cadets for cadet activities that are non-CAP activities? What are they doing that they couldnt do as a Sq activity?  I am not suggesting that anyone is being shady.... but your post illustrates the exact problem with the idea. 

[Flying Pig]

Dont get me wrong... I am 100% all for parents working fund raisers.  Prior to the fund raiser, everyone meets and there is an agreement that this money is going to assist cadets who need assistance with paying for encampment as an example.  We do the fund raiser and within the Sq books, we know that this money is set aside to assist cadets with encampment scholarships.  Again, the booster club is redundant and undermines the Sq command staff and the finance committee charged with managing the unit.  Booster clubs are used an an unaccountable slush fund, usually to do things that would not otherwise be authorized by CAP.

[The CyBorg is destroyed]

We have a "Support Group" made up mostly of parents of our cadets.

[Flying Pig]

When I was the Sq Commander I know I needed a support group a few times but it was usually BECAUSE of the parents!!

[Woodsy]

I'm trying to find any precedent or other squadrons that currently have a booster club... I only recently got back to my home state from the military and found that my squadron now has (among other things) a booster club of SM's that have appointed themselves the de facto finance gurus...

A venti says they are skirting the intent, if not directly violating the WBP rules.

There's is 100%, absolutely no reason for a unit to have a booster club.  They are a worse idea then those SAR hats in the other thread.

I have yet to see a single case where a legitimate reason was given for having one, and generally they are because people think
wing is going to "steal ma munies" or because they want to fund-raise in a way that wold give a Wing CC a fit.

There is also no practical way for a booster club to function independently in the way the regs require.  "Winks and nods" don't generally stand up to IRS scrutiny.

Seen it, more than once.  Also seen wing take away the "cool toys" donated to the squadron.  Once they're in ORMS, they are property of CAP, not the local squadron.

Wing might say one single squadron doesn't need 50+ laptops, a pile of comms gear and dozens of DF'ing equipment.  And they might be right.  But if the local squadron has done all the work to get the stuff, then as far as I'm concerned, it's theirs.

One real simple way to do this is for the property to be owned by a 3rd party organization, and leased/loaned to the local squadron.  Prevents a pile of paperwork and heartache. 

[Ned]

This is probably a good time to remind everyone that a typical "booster club" - whether it is intended to support CAP or another organization - is almost always organized as a non-profit corporation to allow donors potential tax deductions for their donations to the club.

There are some pretty strict laws about corporations; things like Boards of Directors, Bylaws, meetings, minutes, etc.  And Uncle Sam (in the form of the IRS) takes a dim view of corporations that do not follow the rules (by failing to hold the required meetings, filing tax returns, etc.) and will take appropriate action when the minimum corporate requirments are not followed.  Directors have been held personaly liable and donor's deductions denied, to name a just few of the unpleasant possibilities.

So anyone asked to serve as an officer or director of a Booster Club should take the assignment, very, very seriously and make sure that all the "i's are dotted and t's crossed."  Otherwise it can turn into a very messy and potentially expensive experience.  At a mimimum, you should get insurance to cover any potential director or officer liability.

"Caveat Director."


Ned Lee
Former CAP Legal Officer

[Eclipse]

Seen it, more than once.  Also seen wing take away the "cool toys" donated to the squadron.  Once they're in ORMS, they are property of CAP, not the local squadron.

Wing might say one single squadron doesn't need 50+ laptops, a pile of comms gear and dozens of DF'ing equipment.  And they might be right.  But if the local squadron has done all the work to get the stuff, then as far as I'm concerned, it's theirs.

One real simple way to do this is for the property to be owned by a 3rd party organization, and leased/loaned to the local squadron.  Prevents a pile of paperwork and heartache.

You've seen money taken from a squadron since WBP has been in place?

No way.  Wives tale.

[jimmydeanno]

Seen it, more than once.  Also seen wing take away the "cool toys" donated to the squadron.  Once they're in ORMS, they are property of CAP, not the local squadron.

Wing might say one single squadron doesn't need 50+ laptops, a pile of comms gear and dozens of DF'ing equipment.  And they might be right.  But if the local squadron has done all the work to get the stuff, then as far as I'm concerned, it's theirs.

One real simple way to do this is for the property to be owned by a 3rd party organization, and leased/loaned to the local squadron.  Prevents a pile of paperwork and heartache.

You've seen money taken from a squadron since WBP has been in place?

No way.  Wives tale.

Personally? No.  But I know a guy (who is really reputable) who has a friend who is a wing finance officer who knew someone who helped write the WBP regs, who knew somebody that had a friend who was in CAP who told them that they had their money taken away.

[Eclipse]

This is probably a good time to remind everyone that a typical "booster club" - whether it is intended to support CAP or another organization - is almost always organized as a non-profit corporation to allow donors potential tax deductions for their donations to the club.

There are some pretty strict laws about corporations; things like Boards of Directors, Bylaws, meetings, minutes, etc.  And Uncle Sam (in the form of the IRS) takes a dim view of corporations that do not follow the rules (by failing to hold the required meetings, filing tax returns, etc.) and will take appropriate action when the minimum corporate requirments are not followed.  Directors have been held personaly liable and donor's deductions denied, to name a just few of the unpleasant possibilities.

So anyone asked to serve as an officer or director of a Booster Club should take the assignment, very, very seriously and make sure that all the "i's are dotted and t's crossed."  Otherwise it can turn into a very messy and potentially expensive experience.  At a mimimum, you should get insurance to cover any potential director or officer liability.

"Caveat Director."


Ned Lee
Former CAP Legal Officer

And in addition, and Ned, please correct me if I'm wrong, isn't re-directing money that would otherwise be intended
as a direct donation to CAP to a booster club a violation of CAP regs, if not the law as well?

[Flying Pig]

Seen it, more than once.  Also seen wing take away the "cool toys" donated to the squadron.  Once they're in ORMS, they are property of CAP, not the local squadron.

Wing might say one single squadron doesn't need 50+ laptops, a pile of comms gear and dozens of DF'ing equipment.  And they might be right.  But if the local squadron has done all the work to get the stuff, then as far as I'm concerned, it's theirs.

One real simple way to do this is for the property to be owned by a 3rd party organization, and leased/loaned to the local squadron.  Prevents a pile of paperwork and heartache.

You've seen money taken from a squadron since WBP has been in place?

No way.  Wives tale.

Personally? No.  But I know a guy (who is really reputable) who has a friend who is a wing finance officer who knew someone who helped write the WBP regs, who knew somebody that had a friend who was in CAP who told them that they had their money taken away.

I think that was the same guy who dated my uncles daughters nieces twin sisters next door neighbor.   Sorry.... could resist

[The CyBorg is destroyed]

When I was the Sq Commander I know I needed a support group a few times but it was usually BECAUSE of the parents!!

I learnt that as a Safety Officer.  You'd be surprised how many parents thought putting their kid in CAP was going to be the equivalent of "Full Metal Jacket" or military school...and were disappointed to find out we aren't.

[Woodsy]

Seen it, more than once.  Also seen wing take away the "cool toys" donated to the squadron.  Once they're in ORMS, they are property of CAP, not the local squadron.

Wing might say one single squadron doesn't need 50+ laptops, a pile of comms gear and dozens of DF'ing equipment.  And they might be right.  But if the local squadron has done all the work to get the stuff, then as far as I'm concerned, it's theirs.

One real simple way to do this is for the property to be owned by a 3rd party organization, and leased/loaned to the local squadron.  Prevents a pile of paperwork and heartache.

You've seen money taken from a squadron since WBP has been in place?

No way.  Wives tale.

Personally? No.  But I know a guy (who is really reputable) who has a friend who is a wing finance officer who knew someone who helped write the WBP regs, who knew somebody that had a friend who was in CAP who told them that they had their money taken away.

I think that was the same guy who dated my uncles daughters nieces twin sisters next door neighbor.   Sorry.... could resist

I have PERSONALLY seen a squadron lose a major donation (5 figures) because of wing intervention.  Not exactly that the wing took the money, but wing made so many conditions and issues above and beyond what the donor and potential squadron had agreed on, such as stating there could not be a stipulation that the money stay local, that the donor pretty much said screw you and took his money elsewhere. 

I HAVE seen donated equipment, and equipment purchased with donated funds, be "reassigned."  That's the same as taking money if you ask me. 

[Eclipse]

I have PERSONALLY seen a squadron lose a major donation (5 figures) because of wing intervention.  Not exactly that the wing took the money, but wing made so many conditions and issues above and beyond what the donor and potential squadron had agreed on, such as stating there could not be a stipulation that the money stay local, that the donor pretty much said screw you and took his money elsewhere. 

As yo say, not the same thing.

>I< have personally put the kibosh on a number of large donations because at the end of the day they were not a good idea.  Just because someone is waving money at
you doesn't mean it won't be a huge PITA in the end, not to mention the fact that the average squadron wouldn't know what to >do< with a 5-figure donation.

I HAVE seen donated equipment, and equipment purchased with donated funds, be "reassigned."  That's the same as taking money if you ask me.

As have I, though I don't agree it's the same - at the end of the day, everything is corporate property, and if a unit isn't or can't use(ing) something,
then it should be reassigned.  The case where an actual critical piece of equipment is reassigned from a unit is going to be rare to the point of
"wive's tale", and likely has a complicated back story.

Neither example above is justification for this booster club nonsense.

[MajorM]

We have a 501c3 non-profit corporation that supports youth aviation programs in our area.  It's run like any npo complete with board meetings, 1099 filings, bylaws and so on.  It probably helps that some number of us, including our attorney work in the non profit world for a living.  We are a membership based npo but open to anyone.  Currently the only members are also squadron members but there's no bylaw or corporate requirement for that.

Personally I've found it quite useful.  We have a high value asset that was put together using member funds that is controlled by the npo.  Without it I am quite confident it would be sent all over the place with little to no fiscal concern.

It's also quite useful for grant writing.  Local foundations and groups like having a local IRS# to give to versus the national number.  However we are always very clear they are not donating to CAP.  Rather they are donating/granting to a youth aviation organization.  It just happens that our squadron is the only youth based aviation group in the area.