Setting up a Venmo account for a booster club can seem like the perfect way to simplify your club accounting. It’s digital, it’s easy, and almost everyone knows how to use it. Apps like Venmo can be an attractive alternative to cash and are more traceable and less susceptible to fraud or mismanagement.
However, using a personal Venmo account to conduct booster club business may have unintended consequences. Read on to learn more about the implications of using Venmo or other cash apps.
There are very few transfers of money that don’t trigger tax implications. Even if your organization has 501(c)(3) status, you still have to stay on top of your filing and track your cash flow in and out.
Using a personal Venmo account could mean that you have to declare the money as income. Even if you only use your Venmo account exclusively for booster club business, the IRS may not see it that way. If you do end up having to declare the Venmo transactions as income, you could be left with a hefty tax bill at the end of the year.
In addition, while Venmo has some reporting features, it could be more difficult to run reports or track cash flow than with a bank account or other payment system. If you are using your personal account for the club and personal transacting, it can be a nightmare to file taxes at the end of the year.
In addition to the tax implications, using Venmo for a booster club has fees that you’ll have to consider. Many Venmo users link their accounts to a credit card, which means that there’s a 3% transaction fee.
Using other forms of payment can help you avoid these fees and ensure that every dollar from your supporters is going toward your cause.
If you are using a personal Venmo account, it can be difficult to ensure that these checks and balances are in place. If you’re using your personal account for both the booster club and your personal finances, it can prove especially hard to manage.
Alternatives to Venmo
Instead of using your personal Venmo account, you can set up a merchant account with a bank. This will allow you to easily take payments, and it will create a clean record of transactions that you can easily track.
A dedicated bank account makes it easier to be transparent about finances, and it makes filing taxes at the end of the year much simpler. It also prevents mixing personal finances with booster club finances, and you can easily answer any questions club members may have about the budget and cash flow.
If you were wondering, “Can a booster club take Venmo?” now you have your answer. Setting up a separate bank account can seem formal for a small organization, but it’s the easiest way to track your finances and ensure accountability.
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Our Club Has Been Using Charms and Has Student Accounts — Why Is This a Bad Idea?
There’s a lot to like about Charms Office Assistant. This program has been a music program stalwart and can help schools and boosters communicate with students, manage assessment data, and collect payments.
We get the appeal of using Charms to support your band’s billing activities — the system is already in place, and you can collect payments from students and parents all in one platform. However, Charms wasn’t really designed for booster clubs. It was really designed to be used by the school or music director.
Most booster clubs are non-profits. The activities and best practices are different. For instance, non-profits can not fundraise for the benefit of one person. They must fundraise for the group as a whole. Also, fees can not be mandatory in a non-profit. You can certainly say “100% participation is highly encouraged,” but you can not require anyone to pay to participate.
By replacing Charms with a purpose-built booster solution, your club can:
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Round Rock Volleyball Is Ahead of the Game by Using BoosterHub MVP
After each sports season, the coaching staff gets together to review what went well and what they can do better next year. Often, coaches will turn to league winners for inspiration. During this process, they analyze film, look at stats, and explore ways to incorporate these insights into their own coaching strategies.
Your athletic booster club can apply these same principles to get better at fundraising during the off-season. On that note, let’s turn our attention to the Round Rock Volleyball booster club and how they’re delivering for student athletes with BoosterHub.
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Is SMS a Good Way to Communicate with Donors and Booster Club Members?
Finding effective ways to communicate with donors and members is a problem as old as your school’s rivalry with the neighboring high school football team. And just like that generation-spanning rivalry, you never seem to be able to maintain the upper hand for long.
During your time as an athletic booster club member, you’ve probably tried a variety of communication techniques, from phone calls to flyers and even email. If that’s the case, you know that none of these strategies are especially effective for relaying information to your membership.
While you’ve probably considered using SMS messaging to talk to donors and booster club members, you may be hesitant to make yet another change to your communication strategy. But trust us — SMS messaging is the way to go. With the right SMS messaging tools in place, you can effortlessly share information, keep parents in the loop about upcoming events, and make 2023 your most productive fundraising year ever.