• ASBs are mandatory in grades 7 through 12 whenever students engage in money raising activities with the approval and under the supervision of the district. Each building must have a separate constitution.
  [WAC 392-138-010]
• ASBs are not mandatory at the elementary level (K-6) but any money raised with the approval and under the supervision of the district must be administered in the same way as ASB money.
  [WAC 392-138-010]
• The school board has authority over ASBs and ASBs are subject to the same laws as the district including such as accounting procedures, budgets, and warrants.
  [RCW 28A.325.020] [WAC 392-138-013]
• Students are still free to raise money for their own personal or private use but this activity cannot be done by the ASB or with school approval, or district supervision on school time. They may not use their team or club name or suggest representation verbally or wear a uniform during personal or private fund raising.

B.  ASB Accounting

• ASB money must be accounted for in compliance with rules and regulations published in the Accounting Manual for Public Schools in the State of Washington.
  [WAC 392-138-045]
• All ASB money is accounted for, spent, invested, and budgeted the same way as other public money.
  [WAC 392-138-115 and -014]
• The district must have an annual ASB program fund budget approved by the school board.
  [WAC 392-138-110]
• Disbursements may be made either by warrant, imprest bank accounts, or petty cash funds.
  [WAC 392-138-125, -120, and -018]

C.  Other ASB Financial Considerations

• ASB purchases must comply with state bid laws.
  [WAC 392-138-019]
• All property acquired with ASB moneys becomes the property of the school district.
  [WAC 392-138-021]
• ASB moneys may not be expended as grants for charitable or scholarship purposes. Private money, collected at school, can be used for such purposes
  [WAC 392-138-100]

D.  Application of ASB Fund Law

• Building administrators should know school policies and procedures related to ASB fund use.
• Serious penalties may be applied for failure to follow prescribed ASB fund laws.

Booster/Volunteer Funds
Definition: Moneys raised by volunteer organizations which support school organizations but operate independently of school district. These organizations include PTSA and other parent-faculty clubs.
 
A.  Organization

• Local booster clubs and PTSAs should be incorporated as nonprofit organizations in the state of Washington.

B.  Nonprofit Incorporation

• The organization's purpose must not be for profit, although funds may be raised to support nonprofit purposes.
• The organization must draft articles of incorporation and bylaws which are filed with the Secretary of State. (A PTA may obtain copies of both an instructions form the state PTA Office.)
• When an organization incorporates there are provisions in state law which must be followed.

 
C.  School District-Organization Relations

• Volunteer organizations and school districts operate under different sets of laws with which they must comply.
• When gifts (funds, equipment, etc.) are presented to the district they must be accepted at a regular school board meeting and become the property of the district.
  [RCW 28A.320.030]
• Outside funds may be used to finance a part of the school program under certain conditions.
• An accounting system should be set up to show how grants to the school were used.
• Use of school district equipment and supplies by a non-profit corporation is a gift of public funds not allowable under state law.
• Use of school facilities may be offered free or at a reasonable rental fee at the discretion of the school board.

Fund Raising
The Washington State Gambling Commission, the Department of Licensing, and the Internal Revenue Service all have licensing regulations covering fund raising activities by non profit corporations.
 
A.  Charitable Solicitations in General

• A nonprofit corporation may conduct sales or benefit affairs which include athletic or sports events, bazaars, benefits, campaigns, circuses, contest, dances drives, entertainment's, exhibitions, expositions, parties, performances, picnics, sales, social gatherings, theaters, and variety shows.
• A nonprofit corporation may operate bingo activities, raffles, and amusement games under requirements regulated by the Washington State Gambling Commission.

B.  State Registration

• Charitable organizations are required to be registered under recent changes in the law, and they must file an annual report.
• The cost of solicitation will continue to be regulated (limited to 20 percent of total moneys raised unless a state waiver is obtained).
• When a professional fund raiser is used registration is required.
• School districts or affiliates such as the ASB and student organizations do not require registration.

C.  IRS Recognition Required

• A charitable organization involved in sales and benefits grossing over $25,000 must obtain IRS recognition.
• A charitable organization need not file an income tax form unless it grosses over $25,000 annually.
• 3A PTA/PTSA may obtain all application forms and assistance from the State PTSA Office

D.  Gambling License Requirements