Heresay started a thread asking if the changes to the new redbook rules are impacting coach turnover. I have tried to read up on the new rules, but I am not sure I have a good enough understanding of the changes. Can anyone articulate what are the pluses and minuses of the changes and how it is impacting the coaches?

You may be aware, but there are two ways to form a boosters organization in Kentucky: 1. it can be started as a school organization where the money is handled primarily by the school, 2. it can be a separate outside the school organization.

 

I am more familiar with number 2, as Raceland's Football boosters is the only booster organization at the school that is a stand-alone incoperated outside the school organization.

 

The new Red Book regulations require the boosters to order everything that they are going to pay for and not allowing the coaches, or other school employees, to order equipment or goods then have the boosters pay for it. The boosters have to order all goods and pay for it without the coaches touching or being associated with the money. Likewise, it not permissible for the coaches, or other school employees to collect money from fundraiser and give it to the boosters. The school employees can not handle the money. It goes as far as to say if a PTA is running a fundraiser and the kids at the school bring money to for the PTA, the teaches can not collect the money and give it to the PTA. They are supposed to have a "Drop box" in each classroom and the kids are supposed to drop the money in the drop box and have a representative of the PTA, that is a non-school employee, to come and collect the money from the drop box.

 

Also, the regs make it unpermissable for the school to reimburse boosters. For example, if a a booster pays for an item, out of pocket, the school is not supposed to reimburse that booster for their expense. Schools can not pay for coaches clinics and camps any longer. They can only pay for "Mandatory" teacher training. So, that expense will have to be handled by the boosters organization, if it is not currently.

 

Coaches can not be officers in boosters organizations. They, and other school employees, can not be in a position to handle the booster's money.

 

That's all I have off the top of my head for now.

Is this just for public schools or all schools?

The other key to the regulation, and this cannot be stated strongly enough, is that if the school runs the booster club and raises the money himself, the money belongs to the school as a whole, and not any one particular sport or organization. In other words, there is no such thing as "earmarking" money for football. If the money has not specifically been allocated at the beginning of the year by the school board's budget, then all of that money falls into the general fund and must be used for general purposes. The impact of that is twofold: first, one particular sport may provide all of the volunteers for raising money, but not always the reward of that money. Second, the new regulations require certain levels of equalization of funds, meaning that funds raised by football do not necessarily go to football. That is why the outside booster club is now more of an attractive option, but also one in which coaches have Far West control over disposition of funds.

If a team creates an outside school boosters, can you be related at all to the school? Meaning logos, emblems, advertise as a fundraiser on behalf of the football team when trying to get people to contribute to the fundraiser. Are they allowed to have any connection to the school?

 

And if they become an official outside booster, do they have to have the tax exempt id, report their earnings and have an election and official board to operate?

 

Also, If an outside boosters earns money, how do they pay for things for that team. Do they purchase and donate the items? Or can they raise money and donate it to the school? I know this all gets a little tricky.

If a team creates an outside school boosters, can you be related at all to the school? Meaning logos, emblems, advertise as a fundraiser on behalf of the football team when trying to get people to contribute to the fundraiser. Are they allowed to have any connection to the school?

You can use the schools sports program as the designee of the money earned. You can use the teams logos and insignias. The boosters are not part of the school, but work in conjunction with the school, while being an independent agency.

if they become an official outside booster, do they have to have the tax exempt id, report their earnings and have an election and official board to operate?

An outside agency really needs to get a federal Employee Identification Number, tax exempt status, and become an incorporated business. Also, if the boosters club is going to do any kind of gaming, they need to get a gaming license. This includes: bingo and split the pot.

, If an outside boosters earns money, how do they pay for things for that team. Do they purchase and donate the items? Or can they raise money and donate it to the school? I know this all gets a little tricky.

The boosters club purchases equipment and other items and basically donate them to the program. Money should never be "given" to the school. All things purchased by the boosters club should be ordered, paid for, and delivered to the boosters club.

 

Also, an end of the year financial report should be generated by the boosters club and provided to the school financial officer. Even thought the boosters club is an independent outside agency, all money the boosters club spends on the sports program has to be reported for Title 9 purposes.

Is this just for public schools or all schools?

I am assuming this is a state regulation not a KHSAA regulation since no one answered my question....correct?

Sammy, it is all participating KHSAA schools, to my knowledge.

I am assuming this is a state regulation not a KHSAA regulation since no one answered my question....correct?

 

It is a Kentucky Department of Eduction ruling not a KHSAA issue.

I admit I don't understand the requirements fully. Just from my observation of what has made the headlines (see ChiefSmoke's link as well as what has been going on in Dayton, KY) it is easy to see why controls get tightened. Along the same line, what gets posted on the listerv from coaches makes you wonder where about the use of school resources (I am not saying anybody is doing anything wrong, but it certainly makes you wonder). For instance:

 

- There is no shortgage of coaches selling equipment that is either never been worn or just worn once or like new. Makes you wonder why was this equipment ordered in the first place, if the district knows the coach is disposing of surplus property in this way, as well as, where the proceeds from the sale actually end up.

 

- There were also more the a few coaches openly asking the question how other coaches' school districts paid for their tickets and travel to the state football champtionships. They might not have been asking this, but it felt like they were asking how do we get around the redbook requirments.

I admit I don't understand the requirements fully. Just from my observation of what has made the headlines (see ChiefSmoke's link as well as what has been going on in Dayton, KY) it is easy to see why controls get tightened. Along the same line, what gets posted on the listerv from coaches makes you wonder where about the use of school resources (I am not saying anybody is doing anything wrong, but it certainly makes you wonder). For instance:

 

- There is no shortgage of coaches selling equipment that is either never been worn or just worn once or like new. Makes you wonder why was this equipment ordered in the first place, if the district knows the coach is disposing of surplus property in this way, as well as, where the proceeds from the sale actually end up.

 

- There were also more the a few coaches openly asking the question how other coaches' school districts paid for their tickets and travel to the state football champtionships. They might not have been asking this, but it felt like they were asking how do we get around the redbook requirments.

I agree on those two examples. Especially, the last one. The simple solution is to have a separate booster organization and let them pay for everything. I don't understand why a coach, or boosters organization would want the money handled by the school. Just a bad idea to me.

Someone correct me if wrong, but I think these rules reach beyond athletics and boosters organizations. Beechwood does a 6th grade trip to Washington DC. In the past there were a number of different fundraisers done to help students pay for the trip. They no longer do fundraisers and said they are not allowed to do fundraisers for the trip. I am guessing they can't do the fundraisers because of these rules. If true, does that mean the rules impact raising money for academic trips, the band, academic clubs, etc.?

^^^^

 

It is all accounts in school.

Someone correct me if wrong, but I think these rules reach beyond athletics and boosters organizations. Beechwood does a 6th grade trip to Washington DC. In the past there were a number of different fundraisers done to help students pay for the trip. They no longer do fundraisers and said they are not allowed to do fundraisers for the trip. I am guessing they can't do the fundraisers because of these rules. If true, does that mean the rules impact raising money for academic trips, the band, academic clubs, etc.?

It impacts all organizations that raise money in the school, PTA, academic team, band, athletics.

 

However, they can do the fundraisers, it just has to be done by non-school employees. All money has to be handled by non-school employees and paid by non-school employees. For example: Beechwood could start a "Tigers to DC" Parent Group. That group, of non-school employees, could do fundraisers and and handle the money and pay for the trip.

Why would this rule impact coaching? Am I being naïve? If this is just a matter of accounting for the money, why would anyone balk at this?