The legalities of supporting Tennessee schools

You have a child who is involved in athletics and/or fine arts at his or her school. The program relies on community support to thrive and even to survive from a financial standpoint. So you round up fellow parents, alumni, and community activists. But you would prefer to have control over how funds are disbursed and spent. How can you make it happen?

One of the rewarding parts of being an attorney is volunteering time for worthy causes. My fellow Cheatham County Central HS alum and "Country Comic" comedienne Chonda Pierce presented me with an opportunity in this year of 2018 when she cast her vision to expand on her generosity for the drama program with a foundation that would involve an alumni board of directors and continue the legacy begun by "Drama Mama" instructor emerita Joyce Mayo.

Enter a series of Tennessee statutes known formally as the School Support Organization Financial Accountability Act (the "Act"). In short, the Tennessee General Assembly passed these statutes into law to ensure continued support of academic, arts, athletic, and social programs and to ensure financial accountability from both the organizations and the schools.   

The Act requires school districts to adopt a policy regarding school support organizations and essentially spells out the requirements of what such policies should contain. Prior to soliciting, raising, or collecting money, the organization must submit the following documentation to the director of schools:
  • Charter confirming status as a nonprofit organization. Note that school support organizations are NOT required to be "501(c)(3)" certified by the IRS. But some tax professionals may advise applying for 501(c)(3) status just the same.
  • Goals and objectives of the organization, which can be stated in the bylaws required by Tennessee corporate statutes.
  • Contact information for the officers of the organization. An attorney's office can be used as the principal office, location for agent for service of process, and a point of contact for the organization.
  • Written policy specifying reasonable procedures for accounting for and safeguarding funds collected and disbursed by the organization.
Though the Act does not require a written agreement between organization and school district per se, it does require that funds be disbursed only in accordance with written conditions that the organization may place into effect. School systems also may be interested in avoiding liability for any actions of the organization. This can be resolved by a simple legal indemnification paragraph in the agreement.

As the organization moves forward, the law requires a statement of total revenues and disbursements prior to the end of each school year. Verification of continued status as a nonprofit organization and an updated officer list are required at the beginning of each school year.

The organization must secure approval of the director of schools prior to undertaking a fundraising activity to ensure that the activity does not conflict with school district or individual school fundraising efforts and to ensure consistency of the goals and mission of the school and school district. The organization also must be accountable to the director of schools by making meeting minutes and receipts available for inspection.

Before you give up on the idea of raising funds to support a school due to all these legalities and the hassle of complying with law, remember that a bit of work and diligence in the beginning can save a lot of headache later on and ensure a smooth operation. School Support Organizations are crucial to the life of our schools, and the last thing we need are debacles and snafus as they work to accomplish their respective missions.

So be sure to consult with your lawyer and to be organized in your approach.





Comments

Post a Comment

Popular posts from this blog

Summarizing the ASCAP and BMI consent decrees

Image
As you have been reading in plenty of places (including this blog), the Music Modernization Act of 2018 and the reforms put into place by it will continue to have a positive impact on those who create music. In recent months, discussion regarding possible termination of the ASCAP and BMI federal consent decrees has begun. This was noted in an article by Nate Rau in  The Tennessean  on March 3, 2019. So just exactly what are these consent decrees? And why should we even want to see them terminated? The answer lies in monopoly and price-fixing litigation initiated by the United States Department of Justice over 80 years ago in the Southern District court of New York. In 1941, agreed orders, also known as decrees, were presented to and approved by the court. ASCAP has the most recent modified decree on its web site. This was signed in 2001. The BMI decree was amended last in 1994. If you can find the BMI decree, please send me the link. Executives from both ASCAP and BMI have declare
Read more

Confusion About Trademark Applications

Image
In my entertainment law practice, the one subject that seems to generate the most confusion is trademarks. I am going to take the term "confusion" to a legal point in this blog post. "Likelihood of confusion" is a major hurdle to achieving a registration in the United States Patent and Trademark Office (USPTO). Many music industry people have false impressions about the process of filing and registering a federal trademark. Some are savvy enough to file their own applications. However, when the application is reviewed by an examining attorney at the USPTO in Alexandria, Virginia, the fearless pro se  applicant will call and request help. Many times it is too late to help. Application fees and the time spent filing the online application are wasted. So it is best to be informed about the basics of the process before beginning. A mark must  be in use in commerce before it can register. It is possible (and sometimes advisable) to file an application based on t
Read more

Luke Bryan has the 32 Bridge trademark - But not "Food + Drink"

Image
The world of trademark is not as simple as one might think. And that is what lawyers are for. When Luke Bryan winds up the CMA Music Festival Sunday night at Nissan Stadium in Nashville, he will have a single registration for the 32 BRIDGE mark that salutes his Georgia heritage. But the restaurant and bar mark won't yet be registered.  And if you're thinking that one registration covers all uses and possible uses, think again. If you're filing for a merchandise/clothing, you're not automatically protected for restaurants and bars. In fact, there are really two types of marks: "Trademark" is a universal term, but some marks are really used as service marks. There are 45 international classes, mostly used for administrative purposes by the United States Patent and Trademark Office ("USPTO"). The big point of administration for you is that you pay an extra fee of at least $225 if you apply for more than one class of goods or services. The first
Read more