# How a Booster Club Works With the School and School District

> How a booster club works with its principal, athletic director, coaches, and district: who owns which funds, the school name and logo, and gifts to the school.

- URL: https://boosterclub.org/governance/working-with-the-school/
- Section: Governance
- Updated: 2026-10-08

A booster club is a private nonprofit that supports a public school program, which means it works alongside the principal, athletic or activities director, and coach without being part of the school. The president owns the relationship with the school, and the board makes sure the club follows the district's booster rules.

Most serious booster club problems with schools come from blurred lines: a coach holding the checkbook, booster money sitting in a student body account, or a club that thinks it can decide who plays. Districts publish booster guidelines to prevent exactly these situations, and a club that ignores them can lose permission to operate on campus.

## A Separate Entity Supporting a Public Program

Published district guidance is consistent on the basic relationship. California's Fiscal Crisis and Management Assistance Team (FCMAT, a state agency that advises school districts) states that booster clubs:

- Are legally separate from the district and are not under the legal control of the superintendent, board, site administrators, staff, or students.
- Must have their own employer identification number (EIN) and may never use the district's.
- Must remain completely separate from the school's Associated Student Body (ASB) organizations and must not administer or supervise them.
- Must never commingle funds with ASB or district funds, and cannot keep funds in the ASB account or the school safe.

District booster manuals often add that the district assumes no liability for the operation of booster clubs, that any financial obligation a club incurs is the club's alone, and that clubs must sign a hold harmless agreement (a promise not to hold the district responsible for the club's activities).

## Who Does What

| Role | Typical responsibility toward the booster club |
|---|---|
| Principal or designee | Approves the club to operate, approves fundraisers and facility use, receives annual paperwork, decides what gifts the school can accept |
| Athletic or activities director | Coordinates booster clubs across programs, schedules facilities, enforces athletic association rules |
| Coach, director, or advisor | Advises the club on program needs; under many district rules, has no vote and no control of booster money |
| District business office | Processes gifts, purchases made with donated funds, and any payments to employees through payroll |
| Booster club board | Raises and manages its own money, decides what to offer the program, follows district rules |

Some districts state plainly that booster clubs have no authority to direct any school employee or to set guidelines for any school or student activity. Coaching decisions, playing time, team selection, and personnel matters belong to the school.

## The Annual Approval Packet or Memorandum of Understanding

Many districts require a booster club to apply for approval each year, and some use a memorandum of understanding (MOU), a written agreement between the club and the school. Some districts, for example, authorize a club for one fiscal year at a time, with renewals available. FCMAT's guidance lists what a club submits each year:

1. Confirmation that officers attended the district's annual booster workshop.
2. A proposed budget and list of fundraising activities, so the school can check for conflicts with other activities.
3. A certificate of liability insurance meeting the district's minimum coverage. See [Booster Club Insurance](https://boosterclub.org/governance/insurance/).
4. A member roster and officer contact list.
5. A bank statement and list of authorized signers.
6. Financial statements (balance sheet and income statement) twice a year.

FCMAT's list also includes proof of 501(c)(3) status and the club's own EIN, a copy of the bylaws, and a signed hold harmless agreement.

An MOU, where used, should also cover facility use, storage, use of school marks, how gifts are made and accepted, how concerns are raised, and what happens to club assets if the club dissolves. See [School District Fundraising Policies and MOUs](https://boosterclub.org/fundraising/district-policies/).

## Who Owns the Money

| Fund type | Owned and controlled by | Key rules |
|---|---|---|
| Booster club funds | The booster club, a private nonprofit | Held in the club's own bank account under its own EIN; spent by the club's board |
| ASB or student body funds | The district, through the student organization | District-sponsored and subject to district audit; spent by student council action under district rules |
| District funds | The district | Spent under the district's purchasing and board rules |

Names vary by state: student activity funds, student body funds, and ASB all describe money raised by and for students under district control. The rule is the same everywhere: booster money and student or district money never mix. The club does not deposit into a school account, does not run its money through an ASB account as a "pass-through," and does not ask a school employee to hold its cash.

Once the club gives money to the school, it becomes the school's. FCMAT states that donated funds accepted by the district are district property and may not be returned to the booster club.

## Use of the School Name, Mascot, and Logo

Districts commonly restrict how boosters use school identity:

- **Name.** Some districts do not allow a booster club to use the school's name without adding "Booster," and bar names that imply district responsibility. Others advise using a full name such as "ABC High School Band Booster Club" on checks and literature, never the school name alone.
- **Address.** Some districts do not allow clubs to use the school or district address for letterhead, correspondence, or deliveries. A post office box keeps the address stable across officer changes.
- **Logo.** Some districts require the superintendent's specific authorization to use school or district logos, and FCMAT recommends a unique booster logo. Some districts license their marks.

Selling merchandise with a school logo without permission can violate district policy and trademark rights. See [Booster Club Name, Logo, and Identity](https://boosterclub.org/marketing/brand/).

## Coaches, Directors, and Booster Money

The rule in most published guidance is that the school employee who runs the program does not handle booster money.

- The University Interscholastic League (UIL, the Texas body governing school athletic and academic contests) states that individuals who coach or direct a UIL activity serve in an advisory role without vote and should not have control or signature authority over booster club funds, including petty cash.
- FCMAT states that school staff cannot sign booster club checks or invoices for clubs at the site where they work, and may not serve as treasurer, bookkeeper, fundraising chair, check signer, or the person collecting money.
- Some districts bar all district employees, including principals, teachers, sponsors, and coaches, from any financial role in a booster club, including serving as an authorized signer or controlling a booster petty cash fund.

**Payments to school employees.** FCMAT states that booster clubs may not pay district employees directly for services, including with gift cards; a club that wants to compensate a coach for extra work must go through the district's payroll. Some districts also prohibit giving cash to any employee to spend at the employee's discretion. UIL limits gifts to coaches and directors in recognition of their coaching or directing to $500 per calendar year from all sources. See [Paying Coaches, Instructors, and Contractors](https://boosterclub.org/taxes/paying-people/).

These rules protect the coach as much as the club. A coach who never touches booster money can never be accused of misusing it.

## Gifts to the School or District

Purchases for the program usually happen as gifts to the district, and districts have formal acceptance procedures. In California, Education Code section 41032 allows a district's governing board to accept gifts on behalf of the district, subject to conditions the board prescribes.

1. Ask the coach or director for a written request, approved by the principal.
2. Have the booster board approve the gift by vote.
3. Submit the district's donation form, stating the amount and the intended purpose.
4. Wait for formal acceptance (often by the principal for small gifts and the district board for larger ones).
5. Pay the district, or buy through the district's purchasing process if the district requires it. Some districts require purchases of equipment for district use to go through district purchasing so they meet district standards.
6. Check with the district before buying anything that must be installed or maintained.
7. Record the gift and the acceptance in the minutes and keep the paperwork in the permanent file.

Rules on restricting a gift differ. FCMAT advises clubs to state the specific purpose of a donation. UIL guidance in Texas says money given to the school cannot be earmarked; the club may recommend a use, but the school decides. The club follows its own district's rule. Items bought with donated funds become district property. Large gifts can affect gender equity obligations; see [Title IX and Booster Club Fundraising](https://boosterclub.org/fundraising/title-ix/).

## Common Mistakes

- **The coach as treasurer or signer.** It violates many district and athletic association rules and invites accusations of misuse.
- **Booster money in a school account.** Commingled funds lose their booster identity and may not come back.
- **Buying equipment directly and handing it over.** The district may refuse it, and installed items may violate district standards.
- **Using the school logo on merchandise without permission.** The district can require the club to stop selling it, leaving the club with unsold inventory.
- **Trying to influence coaching or playing decisions.** It damages the relationship and can end the club's approval to operate.

## Checklist

- [ ] Obtain the district's current booster club guidelines and read them in full (president)
- [ ] Submit the district's annual approval packet or sign the MOU
- [ ] Confirm the club uses its own EIN and bank account, with no funds in school accounts
- [ ] Confirm no school employee is a signer, treasurer, or money handler
- [ ] Confirm the club's name, address, and logo meet district rules
- [ ] File the insurance certificate naming the district as required
- [ ] Route every gift to the school through the district's donation and acceptance process
- [ ] Route any payment to a school employee through district payroll
- [ ] Meet with the principal or designee at the start of each year and as needed

## Related Pages

- [School District Fundraising Policies and MOUs](https://boosterclub.org/fundraising/district-policies/) fundraising approvals and facility use
- [Booster Club Insurance](https://boosterclub.org/governance/insurance/) what districts require on the certificate
- [Booster Club Conflict of Interest Policy](https://boosterclub.org/governance/conflict-of-interest/) handling coach and staff relationships
- [Paying Coaches, Instructors, and Contractors](https://boosterclub.org/taxes/paying-people/) payroll and contractor rules
- [Title IX and Booster Club Fundraising](https://boosterclub.org/fundraising/title-ix/) how booster gifts affect equity

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*This page is general information for volunteer-run booster clubs. It is not legal,
tax, or accounting advice, and BoosterClub.org is not a law firm, accounting firm, or
government agency. Rules change and vary by state and district. Confirm current
requirements with the IRS, the relevant state agency, the school district, and a
qualified professional before acting. If a fact on this page is out of date, we want
to know.*

## Sources

1. Fiscal Crisis and Management Assistance Team (California): https://www.fcmat.org/PublicationsReports/Boosters-and-School-Connected-Orgs-Workshop.pdf
2. University Interscholastic League (University of Texas at Austin): https://www.uiltexas.org/policy/guidelines-for-booster-clubs
3. California Legislative Information: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=EDC&sectionNum=41032