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Scout Bucks

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When fundraising, some units give a portion of the funds raised to the scout that raised the funds. Typically the scout's portion is restricted to scouting use, for that scout's summer camp fees, backpacking equipment etc.

The IRS has not made a blanket determination, but suggests that the scout bucks likely are a commission payment to the scout and therefore jeopardize the unit's tax exempt status. Essentially, a tax exempt organization must establish that it is not organized or operated for the benefit of private interests, such as designated individuals.

Please see this site for an open letter from the IRS that discusses payments to scouts => http://www.irs.gov/pub/irs-wd/02-0041.pdf.

Scoutroom therefore does not intend to provide tracking for programs like 'Scout Bucks'. Doing so would provide an obvious and easy path for the IRS to prove your unit is not complying with Tax Exempt provisions.



Last updated Sat, Mar 23, 2013