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With your guidance, your Girl Scouts will learn money skills that will serve them throughout their lives. Your Girl Scout troop will plan and finance its own activities, and you’ll coach your Girl Scouts as they earn and manage troop funds. Troop activities are powered by proceeds earned through council-sponsored product program activities (such as the Girl Scout Cookie Program), group money-earning activities (council-approved, of course), and any dues your troop may charge.
Remember that all funds collected, raised, earned, or otherwise received in the name of and for the benefit of Girl Scouting belong to the troop as a whole and must be used for the purposes of Girl Scouting. Funds are administered through the troop and do not belong to individuals.
Establishing a Troop Account 
You'll need a safe place to deposit your troop dues, product program proceeds, and other funds. If you? re a new leader of an existing troop, you may inherit a checking account, but with a new troop, you'll want to open a new bank account.
Here are a few helpful tips you can take to the bank:
Be sure to find a bank that has free checking and low fees.
Designate a “troop treasurer,” that is, one person who is responsible for troop funds and for keeping a daily account of expenditures.
Ensure your account comes with a debit card that you can use during activities or trips. These transactions are easier to track at the end of the year.
Be prepared and make sure another troop volunteer has a debit card for the troop account in case the main card is lost.
Handle a lost troop debit card the same way you would a personal debit card: cancel it immediately.
Keep troop funds in the bank before an activity or trip and pay for as many items as possible in advance of your departure.
All accounts are opened under the Council’s Federal Tax ID Number and as such, all money or property earned in the name of a troop/group or Service Unit is the property of the troop/group or Service Unit as a Girl Scout entity and NOT of the individuals within the troop/group or Service Unit. The Council has the right to audit, freeze, close, or seize any account funds under its Federal Tax ID number when deemed appropriate by the CEO.
Because troop/group/Service Unit funds are owned collectively for the benefit of the girls, proper handling and accounting of the funds is imperative. All troop funds must be placed in a bank account. All volunteers must follow the council’s financial policies and procedures for setting up an account.
The following will help you establish a troop bank account:
- Complete Managing Group Finance in gsLearn to learn about money handling as a Girl Scout group. If you do not see the course, please email Customer Care to request the course be added.
- Girl Scouts of New Mexico Trails has a working relationship with several banks. Talk to your local membership staff person about which bank they recommend you use.
- All signatories on the troop bank account MUST be actively registered unrelated adults with a current background check. Background checks are valid for 2 years.
- Complete the Bank Form to request a letter to open your account. The form can be found on the Volunteer/Volunteer Resources/Forms and Documents page on our website or here.
- This documentation will be provided to you by your local membership staff member:
- A letter to the bank where you will open your account authorizing the creation of the account, naming the volunteers who will be responsible for its fiscal management.
- The January 10, 2008 letter from the Internal Revenue Service.
- IRS Form W-9 – Request for taxpaying identification number and certification – GSNMT
- Council by-laws
- All individuals who will be signatories to the account may need to be present when the account is opened. Make an appointment with your bank and/or plan with other signatories when you will go to the bank. Take the items listed above to the bank with you when opening the account. The individuals who go to the bank to open the account need to be the same individuals whose names appear on the letter provided.
- Each checking account opened for a Girl Scout Troop/group should be opened as a “non-profit” business account. This account should not have any annual fees associated with it.
- DO NOT use your personal social security number to open troop/group accounts. Use GSNMT’s Federal Tax ID # (85-6011246), which can be found on the paperwork provided to you.
- Debit cards CAN be ordered for troop accounts. Think about who should have these cards – they will be ordered in their name.
- Make sure that your bank statements will be going to the household of a signer or a troop PO Box. Do not have your bank statements sent to the council address. You need to be able to receive them directly in order to properly manage your finances.
- When leaving the bank, make sure that one person holds the checkbook or debit card and the other will receive the bank statements. This is for proper checks and balances of troop accounts. ALL SIGNERS ARE RESPONSIBLE FOR THE FINANCIAL SECURITY OF THE ACCOUNT. DO NOT ADD YOUR NAME TO AN ACCOUNT WITHOUT THIS UNDERSTANDING.
Once you have opened an account, the troop must:
- Submit an ACH (or Automated Clearing House) form to Girl Scouts of New Mexico Trails. Even if you do not plan to participate in the product program, we must have this form on file.
- Each troop/group must annually submit a Year-End Activity Report (YEAR) via the Volunteer Tool Kit (VTK) that can be accessed through myGS online. Bank statements and other documents can be attached to the online submission of the YEAR.
- A select number of random troop accounts are audited by GSNMT each year. Keeping on top of your troop finances will make this process simple and painless, should your troop be selected.
- Copies of your monthly bank statements are required and must be submitted according to the schedule below. Failure to turn in monthly statements can result in a full account audit, as well as the inability to participate in upcoming Product Program opportunities.
- YEARs are due on July 1st and should include a copy of January, February, March, April & May statements. This due date may change depending on holidays or other factors.
- A set of statements for June, July, and August are due October 1.
- A set of statements for September, October, November, and December are due February 1.
- All bank statements should be submitted to [email protected] specifying your Troop Number and Service Unit name in the subject line of the email.
- YEARs are to be submitted to New Mexico Trails via the Volunteer Toolkit (VTK). Each spring, GSUSA opens up the finance tab of the VTK in order for troops to submit their YEAR. This feature also allows troops to upload the bank statements required to accompany the YEAR. For troops who plan to disband and not continue their troop into the next membership year, the disbanding troop may submit their YEAR via hard copy to their membership staff person. If a returning troop submits their YEAR via hard copy, your membership staff person will provide instructions for submitting the YEAR if the Finance Tab in the Volunteer Toolkit is not available.
The troop should also consider:
- ATM cash withdrawals are not recommended. All ATM cash withdrawals must be justified with a statement, signed by the two volunteers who have co-signed the account, attesting to the use, amount, and date of the expense if receipts are missing. If this documentation is not provided, an audit of the troop account may occur.
- At any time, parents/guardians may ask to see the troop finances and have the right to do so. Have your balance and ledger available within a timely manner. We suggest having them available at every troop meeting.
- Troop money may be used to pay for required adult training, such as First Aid/CPR or Outdoor Core course fees. This rule applies to Safety-Wise adults only (adults required by the ratio chart) unless otherwise specified by the girls’ group vote.
If a Girl Scout(s) leaves one active troop to join another, the money in each of those troops remains the property of each troop as a Girl Scouts of New Mexico Trails entity and does not belong to the Girl Scout(s) who are transferring their participation from one troop to another. In addition, the new troop’s money is the property of that group, including the newest member(s).
Before members leave an active troop, the troop may hold a vote (The girls are the only members of a troop who may vote. Adult input is discouraged.). The girls have the option to send their departing troop member with an equal share of the troop finances (divided equally by the number of girls). For example, if a troop/group of 10 girls has $500 in their bank account, and the girls vote to send a departing member with her share, the troop/group will provide the girl’s new troop a check for $50.
Money transferring from troop to troop is not related to the amount of product sold, the amount of money earning done by an individual girl, or the participation of an individual Girl Scout in any troop activities.
Utilizing a Digital Payment Application
Tax law changes and 1099-K from Money Payment App Vendor
New tax law changes that went into effect January 1, 2022 require the IRS to send a 1099-K to any Digital Payment App users whose transactions exceed $600 in a calendar year. This applies to Troops and Service Units that are using apps like PayPal, Venmo, Square, Zelle, etc. to collect payment for business conducted through the troop or SU bank account. This does not impact any payments received through Digital Cookie, regardless of the cumulative amount received in a calendar year.
With the increased options for troop and Service Unit use of Digital Payment Applications (Apps), Girl Scouts of New Mexico Trails is committed to working with troops/SUs on a safe and effective process for collecting payments electronically as an alternative to exchanging cash or checks. The use of an app allows for limited contact of actual funds while providing documentation for both the recipient and the payee.
While many apps are available for use, GSUSA recommends that councils select an app that will be used for all electronic transactions. Therefore, effective immediately, PayPal or Venmo will be the only allowable Digital Payment Apps that may be used for transactions by Girl Scouts of New Mexico Trails account holders. If troops/SUs choose to not use a Digital Payment app, that is fine; but PayPal or Venmo will be the only apps that will be allowed by Girl Scouts of New Mexico Trails.
Setting Up / Adjusting PayPal or Venmo
When setting up the PayPal or Venmo account for the troop/SU, please use the council’s Tax ID number (85-6011246) – much like what is used when the troop/SU sets up a bank account with their financial institution of choice. If your PayPal or Venmo account was set up using a personal social security number, please make that correction with PayPal or Venmo as soon as possible.
Please note, if more than $600 is received by the troop/SU during the calendar year, a 1099-K form will be issued by the IRS to the troop/SU. It is not required that you file anything with the IRS, but the troop/SU treasurer should retain this form for your own records. The council does not need a copy of this form.
Other Payment Apps
If your troop/SU has been using any other Digital Payment App to exchange payments, please discontinue the use of these apps. As mentioned above, PayPal and Venmo will be the only allowable Digital Payment Apps for use by troops/SUs affiliated with Girl Scouts of New Mexico Trails.
If you need further guidance, please contact your Regional Manager or Troop/Service Unit Support Specialist at 505-343-1040.
Money-Earning Basics for Troops
Troops flex their financial muscles in two distinct ways:
The Girl Scout Cookie Program and other product sales of Girl Scouts (authorized product sales such as calendars, magazines, or nuts and candy) organized by your council. All youth members are eligible to participate in two council-sponsored product program activities each year with volunteer supervision—the Girl Scout Cookie Program and one other council-authorized product program. Please remember, volunteers and Girl Scout council staff don’t sell cookies and other products—Girl Scouts do.
Group money-earning activities organized by the troop (not by the council) that are planned and carried out by Girl Scouts (in partnership with volunteers) and that earn money for the group.
Board Approved Policy Framework – Money Earning
No Troops and Service Units approved by Girl Scouts of New Mexico Trails are allowed to receive any designated donated funds for their individual Troop and/or Service Units purpose. This includes donated funds from Corporate, Business, and Funding bodies such as United Way and/or individuals. This board policy was put in place due to the following:
- Corporations are donating to Troop/Groups to receive tax deductions. If the IRS audits Girl Scouts of New Mexico Trails, there is no record of the donation, putting the organization’s 501(c) (3) status at risk. IRS regulations specifically say that a 501(c) (3) cannot assign assets (money) to an individual within the 501(c) (3). All funds donated must be used toward our mission and programs.
- Troop/Groups and Service Units are NOT 501(c) (3) legal entities, and as such cannot issue tax receipts. Only the corporate entity “Girl Scouts of New Mexico Trails, Inc.” is a 501(c) (3) entity and only “Girl Scouts of New Mexico Trails, Inc.” can issue tax receipts.
Because of this, a simple process for donations to Troop/Group and Service Units has been created:
- All donations to Troops/Groups and Service Units over $250 require a tax receipt (per IRS) and MUST come through the Girl Scouts of New Mexico Trails and will be processed through the Opportunity Fund.
- If a donor wants to donate funds to a Troop/Group or Service Unit that is NOT in support of a specific program and requires a tax receipt, Girl Scouts of New Mexico Trails will need to work with them to assign this money to a specific program or project in order to accept their donation. Undesignated money cannot be accepted or receipted. As an organization, Girl Scouts of New Mexico Trails cannot properly account for undesignated money or successfully complete audits regarding the use of undesignated money.
- If a donor wants to donate funds to a Troop/Group or Service Unit that is NOT in support of a specific program or project and does NOT require a tax receipt, this donation does not need to go through Girl Scouts of New Mexico Trails but must be accounted for on your Year End Activity Report up to $249.
- Ex: “Keep the Change” at a Cookie Booth or a troop member’s family donating $50 to the troop for craft supplies.
- If a donor wants to donate funds to a Troop/Group or Service Unit for a SPECIFIC PROGRAM or PROJECT (e.g. Gold Award Project, a troop service project, a trip, an arts and craft project, or a Service Unit Event), they must meet the following criteria:
- The Troop/Group or Service Unit must have an approved Money Earning Notification on file with their membership staff person. This gives Girl Scouts of New Mexico Trails notification that the Troop/Group or Service Unit is seeking donations and gives Girl Scouts of New Mexico Trails accountability with the IRS, auditors, grant funders, etc., allowing Girl Scouts of New Mexico Trails to track the program outcomes to which the money is donated.
- If an unsolicited donation of $250 or more is received by the troop/group or Service Unit, the donation must be received by Girl Scouts of New Mexico Trails for council-level receipting and acknowledgment to the donor. Girl Scouts of New Mexico Trails will code these monies to the council’s Opportunity Fund. Troops/groups and Service Units may apply to the Opportunity Fund for these monies, but will only be eligible for funding consistent with the request for use in the application.
If the procedures above are not followed, Girl Scouts of New Mexico Trails reserves the right to refuse a donation. Consistent refusal to follow this policy and procedure will be met with disciplinary action as deemed appropriate.
The Opportunity Fund
The Girl Scouts of New Mexico Trails is proud to offer the Opportunity Fund. This fund is a reflection of our commitment to continue to better serve our members, providing girls in New Mexico the opportunity to become future community leaders and the women they want to be. While adult requests for Opportunity Funds are not typically reviewed, if there is an extenuating financial circumstance, adult requests may be considered. There is no guarantee, however, that adult requests will be approved.
To apply to the Opportunity Fund, it is required that the appropriate form be completed accurately and submitted by the required deadlines listed below.
- Opportunity Fund Form - membership, events, and training – Product Program, individual donors, volunteer match, corporate gifts, and fundraising efforts, support the Opportunity Fund. The fund was designed to provide financial assistance and opportunities to girl members, adult volunteers, Troops, and Service Units, to make sure girls in all of our communities have the opportunity to benefit from Girl Scouts.
- Juliette Fund - Girl Scout Juliettes, girls who are registered as Individually Registered Members of Girl Scouts, may request funds from the Juliette Fund to pay for council-approved events at the council or Service Unit level, official insignia, and uniforms, GSUSA destinations, camp, and membership dues and/or council service fee for membership. Funds should be requested on the Opportunity Fund form and specify “Juliette Fund” along with the girl’s name.
Application Process
Applications are reviewed on a regular basis. Approval notifications are emailed to the requester, as well as the Troop Leader, if necessary. Funds cannot be requested retroactively or issued as reimbursements for money paid out-of-pocket. This form is not used to request camp assistance; please use a Campership Application unless you are specifically accessing Juliette Funds.
Participation Guidance
Girl Scout participation in both council-sponsored product program activities and group money-earning projects is based on the following:
- Voluntary participation.
- Permission of each member’s parent or guardian.
- An understanding of (and ability to explain clearly to others) why the money is needed.
- An understanding that money earning should not exceed what the group needs to support its program activities.
- Observance of local ordinances related to involvement of children in money-earning activities as well as health and safety laws.
- Vigilance in protecting the personal safety of each member.
- Arrangements for safeguarding the money.
Additional Guidelines
Keep these specific guidelines—some of which are required by the Internal Revenue Service—in mind to ensure that sales are conducted with legal and financial integrity.
- All rewards earned by Girl Scouts through the product program activities must support Girl Scout program experiences (such as camp, travel, and program events, but not scholarships or financial credits toward outside organizations).
- Rewards are based on sales ranges set by councils and may not be based on a dollar-per-dollar calculation.
- Troops are encouraged to participate in council product programs as their primary money-earning activity; any group money earning shouldn’t compete with the Girl Scout Cookie Program or other council product programs.
- Obtain written approval from your council before a group money-earning event; most councils ask that you submit a request for approval.
- Girl Scouts discourages the use of games of chance. Any activity which could be considered a game of chance (raffles, contests, bingo) must be approved by the local Girl Scout council and be conducted in compliance with all local and state laws.
- Girl Scouts Blue Book of Basic Documents policy forbids Girl Scouts from the direct solicitation of cash. Girl Scouts can collect partial payment toward the purchase of a package of Girl Scout Cookies and other Girl Scout–authorized products through participation in council-approved product program donation programs.
- Girl Scouts forbids product demonstration parties where the use of the Girl Scout trademark increases revenue for another business, such as in-home product parties. Any business using the Girl Scout trademark or other Girl Scout intellectual property must seek authorization from GSUSA.
- Group money-earning activities need to be suited to the ages and abilities of the participants and be consistent with the principles of the Girl Scout Leadership Experience.
- Money earned is for Girl Scout activities and is not to be retained by individuals. Girl Scouts can, however, be awarded incentives and/or may earn credits from their Girl Scout product programs. Funds acquired through group money-earning projects must be reported and accounted for by the group according to council procedures.
- Raising money in times of national or international emergency. Per Girl Scouts Blue Book of Basic Documents policy, the National CEO in consultation with the National Board Chair may give permission to raise money in times of a major national or international emergency with prior written notice to the National Board. Councils will be notified of this action in writing and troops should consult with their council for appropriate guidelines. Councils may designate an outside organization to receive donations.
Sample Money-Earning Activities
Collections/Drives
- Cell phones for refurbishment
- Used ink cartridges turned in for money
- Christmas tree recycling
Food/Meal Events
- Lunch box auction (prepared lunch or meal auctioned off)
- Themed meals, like a high tea or a build-your-own-taco bar, related to activities Girl Scouts are planning; for instance, if they are earning money for travel, they could tie the meal to their destination
Service(s)
- Service-a-thon (people sponsor a Girl Scout doing service and funds go to support a trip or other activity)
- Babysitting for holiday (New Year’s Eve) or council events
- Raking leaves, weeding, cutting grass, shoveling snow, walking pets
- Cooking class or other specialty class
The Girl Scout Cookie Program and other council-sponsored product programs are designed to unleash the entrepreneurial potential in Girl Scouts. From there, your troop may decide to earn additional funds on its own.
Help Your Troop Reach Its Financial Goals
As a volunteer, you have the opportunity to facilitate girl-led financial planning, which may include the following steps for your troop:
- Set goals for money-earning activities. What does the group hope to accomplish through this activity? In addition to earning money, what skills do they hope to build? What leadership opportunities present themselves?
- Create a budget. Use a budget worksheet that includes both expenses (the cost of supplies, admission to events, travel, and so on) and available income (the group’s account balance, projected cookie proceeds, and so on).
- Determine how much the group needs to earn. Subtract expenses from available income to determine how much money your group needs to earn.
- Make a plan. The group can brainstorm and make decisions about its financial plans. Will cookie and other product programs—if approached proactively and energetically—earn enough money to meet the group’s goals? If not, which group money-earning activities might offset the difference? Will more than one group money-earning activity be necessary to achieve the group’s financial goals? In this planning stage, engage them through the Girl Scout processes (girl-led, learning by doing, and cooperative learning) and consider the value of any potential activity. Have them weigh feasibility, implementation, and safety factors.
- Write it out. Once the group has decided on its financial plan, describe it in writing. If the plan involves a group money-earning activity, fill out an application for approval from your council and submit it along with the budget worksheet your troop created.
Remember: It’s great for Girl Scouts to have opportunities like the Girl Scout Cookie Program to earn funds that help them fulfill their goals. As a volunteer, try to help them balance the money earning they do with opportunities to enjoy other activities that have less emphasis on earning and spending money. Take Action projects, for example, may not always require them to spend a lot of money!
Financial Management and Product Program Abilities by Grade Level
Girl Scout Daisies |
The group volunteer handles money, keeps financial records, and does all group budgeting.
Parents/caregivers may decide they will contribute to the cost of activities.
Daisies can participate in Girl Scout Cookie Program activities and other council-sponsored product programs.
Daisies are always paired with a volunteer when selling anything. They do the asking and deliver the product, but volunteers handle the money and keep them safe.
Daisies should be given the opportunity to practice identifying money and counting back change with an adult during each transaction.
Girl Scout Brownies |
The group volunteer handles money, keeps financial records, and shares some of the group budgeting responsibilities.
Brownies discuss the cost of activities (supplies, fees, transportation, rentals, and so on) with guidance from their volunteer(s).
Brownies set goals for and participate in council-sponsored product programs.
Brownies may decide to pay dues to contribute to the cost of activities.
Girl Scout Juniors |
The group volunteer retains overall responsibility for long-term budgeting and record keeping but shares or delegates all other financial responsibilities.
Juniors set goals for and participate in council-sponsored product programs.
Juniors decide on group dues, if any. Dues are collected by them and recorded by a group treasurer selected by the troop.
Juniors budget for the short-term needs of the group based on their plans and income from the group dues.
Juniors budget for more long-term activities, such as overnight trips, group camping, and special events.
Juniors budget for Take Action projects including the Girl Scout Bronze Award if they are pursuing it.
Girl Scout Cadettes, Seniors, and Ambassadors |
Cadettes, Seniors, and Ambassadors estimate costs based on plans.
They determine the amount of group dues, if any, and the scope of money-earning projects.
Set goals for and participate in council-sponsored product programs.
Carry out budgeting, planning, and group money-earning programs.
Budget for extended travel, Take Action projects, and leadership projects including the Girl Scout Silver or Girl Scout Gold Awards, if they are pursuing them.
May be involved in seeking donations for Take Action projects with council approval.
Keep their own financial records and give reports to parents and group volunteers.
Working with Sponsors and Other Organizations
Local sponsors can help councils power innovative programs for Girl Scouts. Community organizations, businesses, religious organizations, and individuals may be sponsors and may provide group meeting places, volunteer their time, offer in-kind donations, provide activity materials, or loan equipment. Encourage your Girl Scouts to celebrate a sponsor’s contribution to the troop by sending thank-you cards, inviting the sponsor to a meeting or ceremony, or working together on a Take Action project.
For information on working with a sponsor, consult your council, which can give you guidance on the availability of sponsors, recruiting guidelines, and any council policies or practices that must be followed. Your council may already have relationships with certain organizations or may know of some reasons not to collaborate with certain organizations.
When collaborating with any other organization, keep these additional guidelines in mind:
Avoid fundraising for other organizations. Girl Scouts are not allowed to solicit money on behalf of another organization when identifying themselves as Girl Scouts by wearing a uniform, a sash or vest, official pins, and so on. This includes participating in a walkathon or telethon while in uniform. However, you and your group can support another organization through Take Action projects. Girl Scouts as individuals are able to participate in whatever events they choose as long as they are not wearing anything that officially identifies them as Girl Scouts.
Steer clear of political fundraisers. When in an official Girl Scout capacity or in any way identifying yourselves as Girl Scouts, your group may not participate, directly or indirectly, in any political campaign or work on behalf of or in opposition to a candidate for public office. Letter-writing campaigns are not allowed, nor is participating in a political rally, circulating a petition, or carrying a political banner.
Be respectful when collaborating with religious organizations. Girl Scout groups must respect the opinions and practices of religious partners, but no one should be required to take part in any religious observance or practice of the sponsoring group.
Avoid selling or endorsing commercial products. A commercial product is any product sold at a retail location. Since 1939, Girl Scouts and volunteers have not been allowed to endorse, provide a testimonial for, or sell such products.
Disbanding Troops and Unused Troop Funds
When a troop disbands, any unused Girl Scout money left in the account becomes the property of the council. Troop funds are not the property of any individual member. Before disbanding, ask your Girl Scouts how they want to pay it forward. They may decide to pay for Girl Scout activities or to donate any unused funds to their service unit or to another troop. Activities can also include purchasing materials to support another organization through Take Action projects.
Closing the Troop Account
When closing a troop account, be sure all checks and other debits have cleared the account before you close it. Remember, you may have to close the account in person. Turn remaining funds over to a council staff member.
Unused Girl Scout money left in accounts when troops/groups disband is absorbed by the Council and held in “escrow” for one year; if the troop/group does not reform or Girl Scouts are not transferred into other troops, the monies will be retained by New Mexico Trails. The Girl Scouts in the disbanding troop have the option to spend what is left of their money before disbanding. Prior to disbanding, the troop/group may also decide to donate any unused funds to another Girl Scout troop/group or to the GSNMT Opportunity Fund for general Girl Scout activity assistance. As when closing a personal account, be sure all checks and other debits have cleared the account before it is closed. You may have to close the account in person.
The account’s authorized signers are responsible for submitting the following items to their local membership staff person upon the disbandment of the troop/group and/or closure of an account:
- A cashier’s check or money order, payable to Girl Scouts of New Mexico Trails (GSNMT), for any remaining balance in the account.
- A Year End Activity Report (YEAR) dated from the most recently submitted YEAR, or the beginning of the account, to the date on which the account was closed.
- A copy of the account’s most recent bank statements that have not yet been turned in.
- All receipts for the previous year that have been maintained by the Troop Leader or Troop Treasurer.
- Proof of closure of the account. (Letter from the bank stating account closure or final statement with zero balance).
Girl Scouts of New Mexico Trails Specific Financial Policies
Troop Accounts
All accounts are opened under the Council’s Federal Tax ID Number and as such, all money or property earned in the name of a troop/group or Service Unit is the property of the troop/group or Service Unit as a Girl Scout entity and NOT of the individuals within the troop/group or Service Unit. The Council has the right to audit, freeze, close, or seize any account funds under its Federal Tax ID number when deemed appropriate by the CEO.
Because troop/group/Service Unit funds are owned collectively for the benefit of the girls, proper handling and accounting of the funds is imperative. All troop funds must be placed in a bank account. All volunteers must follow the council’s financial policies and procedures for setting up an account.
The following will help you establish a troop bank account:
- Complete Managing Group Finance in gsLearn to learn about money handling as a Girl Scout group. If you do not see the course, please email [email protected] to request the course to be added.
- Girl Scouts of New Mexico Trails has a working relationship with several banks. Talk to your local membership staff person about which bank they recommend you use.
- All signatories on the troop bank account MUST be actively registered adults with a current background check. Background checks are valid for 2 years.
- Complete the Bank Form (https://www.nmgirlscouts.org/en/for-volunteers/volunteer-resources/forms---documents/bank-form.html) with all needed information and submit to get the letter to bring to the bank to open an account.
- This documentation will be provided to you by your local membership staff member:
- A letter to the bank where you will open your account authorizing the creation of the account, naming the volunteers who will be responsible for its fiscal management.
- The January 10, 2008 letter from the Internal Revenue Service.
- IRS Form W-9 – request for taxpaying identification number and certification – GSNMT
- Council by-laws
- All individuals who will be signatories on the account may need to be present when the account is opened. Make an appointment with your bank and/or plan with other signatories when you will go to the bank. Take the items listed above to the bank with you when opening the account. The individuals who go to the bank to open the account need to be the same individuals whose names appear on the letter provided.
- Each checking account opened for a Girl Scout Troop/group should be opened as a “non-profit” business account. This account should not have any annual fees associated with it.
- Do Not Use Your Personal Social Security Number to open troop/group accounts. Use GSNMT’s Federal Tax ID # (85-6011246), which can be found on the paperwork provided to you.
- Debit cards CAN be ordered for troop accounts. Think about who should have these cards – they will be ordered in their name.
- Make sure that your bank statements will be going to the household of a signer or a troop PO Box. Do not have your bank statements sent to the council address. You need to be able to receive them directly in order to properly manage your finances.
- When leaving the bank, make sure that one person holds the checkbook or debit card and the other will receive the bank statements. This is for proper checks and balances of troop accounts. ALL SIGNERS ARE RESPONSIBLE FOR THE FINANCIAL SECURITY OF THE ACCOUNT. DO NOT ADD YOUR NAME TO AN ACCOUNT WITHOUT THIS UNDERSTANDING.
Once you have opened an account, the troop must:
- Submit an ACH (or Automated Clearing House) form to Girl Scouts of New Mexico Trails. Even if you do not plan to participate in product program, we must have this form on file.
- Each troop/group must annually submit a Year End Activity Report (YEAR) via the Volunteer Tool Kit (VTK) that can be accessed through myGS online. Bank statements and other documents can be attached to the online submission of the YEAR.
- A select number of random troop accounts are audited by GSNMT each year. Keeping on top of your troop finances will make this process simple and painless, should your troop be selected.
- Copies of your monthly bank statements are required and must be submitted according the schedule below. Failure to turn in monthly statements can result in a full account audit, as well as the inability to participate in upcoming Product Program opportunities.
- YEARs are due on July 1st and should include a copy of January, February, March, April & May statements. This due date may change depending on holidays or other factors.
- A set of statements for June, July, and August are due October 1.
- A set of statements for September, October, November, and December are due February 1.
- All bank statements should be submitted to [email protected] specifying your Troop Number and Service Unit name in the subject line of the email.
- YEARs are to be submitted to New Mexico Trails via the Volunteer Toolkit (VTK). Each spring, GSUSA opens up the finance tab of the VTK in order for troops to submit their YEAR. This feature also allows troops to upload the bank statements required to accompany the YEAR. For troops who plan to disband and not continue their troop into the next membership year, your membership staff person will provide instructions for submitting the YEAR if the Finance Tab in the Volunteer Toolkit is not available.
The troop should also consider:
- ATM cash withdrawals are not recommended. All ATM cash withdrawals must be justified with a statement, signed by the two volunteers who have co-signed the account, attesting to the use, amount, and date of the expense if receipts are missing. If this documentation is not provided, an audit of the troop account may occur.
- At any time, parents/guardians may ask to see the troop finances, and have the right to do so. Have your balance and ledger available within a timely manner. We suggest having them available at every troop meeting.
- Troop money may be used to pay for required adult trainings, such as First Aid/CPR or Outdoor Core course fees. This rule applies to Safety-Wise adults only (adults required by the ratio chart) unless otherwise specified by the Girl Scout group’s vote.
If a Girl Scout(s) leaves one active troop to join another, the money in each of those troops remains the property of each troop as a Girl Scouts of New Mexico Trails entity and does not belong to the Girl Scout(s) who are transferring their participation from one troop to another. In addition, the new troop’s money is the property of that group, including the newest member(s).
Before members leave an active troop, the troop may hold a vote (The girls are the only members of a troop who may vote. Adult input is discouraged.). The members have the option to send their departing troop member with her equal share of the troop finances (divided equally by the number of girls). For example, if a troop/group of 10 girls has $500 in their bank account, and the girls vote to send a departing member with her share, the troop/group will provide the girl’s new troop a check for $50.
Money transferring from troop to troop is not related to amount of product sold, amount of money earning done by an individual girl, or the participation of an individual Girl Scout in any troop activities.
Utilizing a Digital Payment Application
Tax law changes and 1099-K from Money Payment App Vendor
New tax law changes that went into effect January 1, 2022 require the IRS to send a 1099-K to any Digital Payment App users whose transactions exceed $600 in a calendar year. This applies to Troops and Service Units that are using apps like PayPal, Venmo, Square, Zelle, etc. to collect payment for business conducted through the troop or SU bank account. This will not impact any payments received through Digital Cookie, regardless of the cumulative amount received in a calendar year.
With the increased options for troop and Service Unit use of Digital Payment Applications (Apps), Girl Scouts of New Mexico Trails is committed to working with troops/SUs on a safe and effective process for collecting payments electronically as an alternative to exchanging cash or checks. The use of an app allows for limited contact of actual funds while providing documentation for both the recipient and the payee.
While many apps are available for use, GSUSA recommends that councils select one app that will be used for all electronic transactions. Therefore, effective June 1st, 2022, PayPal will be the only allowable Digital Payment App that may be used for transactions by Girl Scouts of New Mexico Trails account holders. If troops/SUs choose to not use a Digital Payment app, that is fine; but PayPal will be the only app that will be allowed by Girl Scouts of New Mexico Trails.
Setting Up / Adjusting PayPal
When setting up the PayPal account for the troop/SU, please use the council’s Tax ID number (85-6011246) – much like what is used when the troop/SU sets up a bank account with their financial institution of choice. If your PayPal account was set up using a personal social security number, please make that correction with PayPal as soon as possible.
Please note, if more than $600 is received by the troop/SU during the calendar year, a 1099-K form will be issued by the IRS to the troop/SU. It is not required that you file anything with the IRS, but the troop/SU treasurer should retain this form for your own records. The council does not need a copy of this form.
Disbanding troops and closing account
Unused Girl Scout money left in accounts when troops/groups disband is absorbed by the Council and held in “escrow” for one year; if the troop/group does not reform or Girl Scouts are not transferred into other troops, the monies will be retained by New Mexico Trails. The Girl Scouts in the disbanding troop have the option to spend what is left of their money before disbanding. Prior to disbanding, the troop/group may also decide to donate any unused funds to another Girl Scout troop/group or to the GSNMT Opportunity Fund for general Girl Scout activity assistance. As when closing a personal account, be sure all checks and other debits have cleared the account before it is closed. You may have to close the account in person.
The account’s authorized signers are responsible for submitting the following items to their local membership staff person upon disbandment of the troop/group and/or closure of an account:
- A cashier’s check or money order, payable to Girl Scouts of New Mexico Trails (GSNMT), for any remaining balance in the account.
- A Year End Activity Report (YEAR) dated from the most recently submitted YEAR, or the beginning of the account, to the date on which the account was closed.
- A copy of the account’s most recent bank statements that have not yet been turned in.
- All receipts for the previous year that have been maintained by the Troop Leader or Troop Treasurer.
- Proof of closure of the account. (Letter from the bank stating account closure or final statement with zero balance).
Online Fundraising Platforms – Money Earning
Troops/groups and Service Units may not participate in online fundraising which include GoFundMe or similar online fundraising platforms. These online fundraisers incur fees that are removed from the donor’s original donation before being sent to the organization. Donations may be accepted by the troop/group and SU via traditional methods or cash or check.
Board Approved Policy Framework – Money Earning
No Troops and Service Units approved by Girl Scouts of New Mexico Trails are allowed to receive any designated donated funds for their individual Troop and/or Service Units purpose. This includes donated funds from Corporate, Business and Funding bodies such as United Way and/or individuals. This board policy was put in place due to the following:
- Corporations are donating to Troop/Groups to receive tax deductions. If the IRS audits Girl Scouts of New Mexico Trails, there is no record of the donation, putting the organization’s 501(c) (3) status at risk. IRS regulations specifically say that a 501(c) (3) cannot assign assets (money) to an individual within the 501(c) (3). All funds donated must be used toward our mission and programs.
- Troop/Groups and Service Units are NOT 501(c) (3) legal entities, and as such cannot issue tax receipts. Only the corporate entity “Girl Scouts of New Mexico Trails, Inc.” is a 501(c) (3) entity and only “Girl Scouts of New Mexico Trails, Inc.” can issue tax receipts.
Because of this, a simple process for donations to Troop/Group and Service Units has been created:
- All donations to Troops/Groups and Service Units over $250 require a tax receipt (per IRS) and MUST come through the Girl Scouts of New Mexico Trails and will be processed through the Opportunity Fund.
- If a donor wants to donate funds to a Troop/Group or Service Unit that is NOT in support of a specific program, and requires a tax receipt, Girl Scouts of New Mexico Trails will need to work with them to assign this money to a specific program or project to accept their donation. Undesignated money cannot be accepted or receipted. As an organization, Girl Scouts of New Mexico Trails cannot properly account for undesignated money or complete audits regarding the use of undesignated money.
- If a donor wants to donate funds to a Troop/Group or Service Unit that is NOT in support of a specific program or project and does NOT require a tax receipt, this donation does not need to go through Girl Scouts of New Mexico Trails but must be accounted for on your Year End Activity Report up to $249.
- Ex: “Keep the Change” at a Cookie Booth or a troop member’s family donating $50 to the troop for craft supplies.
- If a donor wants to donate funds to a Troop/Group or Service Unit for a SPECIFIC PROGRAM or PROJECT (e.g. Gold Award Project, a troop service project, a trip, an arts and craft project, or Service Unit Event), they must meet the following criteria:
- The Troop/Group or Service Unit must have an approved Money Earning Notification on file with their membership staff person. This gives Girl Scouts of New Mexico Trails notification that the Troop/Group or Service Unit is seeking donations and gives Girl Scouts of New Mexico Trails accountability with the IRS, auditors, grant funders, etc., allowing Girl Scouts of New Mexico Trails to track the program outcomes to which the money is donated.
- If an unsolicited donation of $250 or more is received by the troop/group or Service Unit, the donation must be received by Girl Scouts of New Mexico Trails for council-level receipting and acknowledgment to the donor. Girl Scouts of New Mexico Trails will code these monies to the council’s Opportunity Fund. Troops/groups and Service Units may apply to the Opportunity Fund for these monies, but will only be eligible for funding consistent with the request for use in the application.
If the procedures above are not followed, Girl Scouts of New Mexico Trails reserves the right to refuse a donation. Consistent refusal to follow this policy and procedure will be met with disciplinary action as deemed appropriate.
The Opportunity Fund
The Girl Scouts of New Mexico Trails is proud to offer the Opportunity Fund. This fund is a reflection of our commitment to continue to better serve our members, providing girls in New Mexico the opportunity to become our future community leaders and the women they want to be. While adult requests for Opportunity Funds are not typically reviewed, if there is an extenuating financial circumstance, adult requests may be considered. There is no guarantee, however, that adult requests will be approved.
To apply to the Opportunity Fund, it is required that the appropriate form be completed accurately and submitted by the required deadlines listed below.
- Opportunity Fund form for membership, events, and training – Product Program, individual donors, volunteer match, corporate gifts, and fundraising efforts, support the Opportunity Fund. The fund was designed to provide financial assistance and opportunities to girl members, adult volunteers, Troops, and Service Units, to make sure girls in all of our communities have the opportunity to benefit from Girl Scouts.
Events and trainings $10 or less are not eligible for financial assistance via Opportunity Funds (program credits earned via the cookie program or Early Bird renewal may still be used). Individuals are encouraged to seek support from their troop; if the need is great and out-of-pocket payment of the $10 is still a hardship, the individual may reach out to their Regional Manager, Troop Support Specialist, or Chief Membership Officer on a case-by-case basis.
Events and training with a cost of more than $10 continue to be eligible for financial assistance via Opportunity Funds; however, the first $10 will be covered by the individual or troop. As an example, if an event or training costs $50, Opportunity Funds will cover $40 and the remaining $10 balance will be covered by the individual or troop.
For events with a larger fee, such as a travel opportunity, a percentage (%) will be required as a deposit. This is in line with and similar to deposits being required for resident, troop, or family camp session payments. All deposits will be non-refundable.
- Juliette Fund - Girl Scout Juliettes, girls who are registered as Individually Registered Members of Girl Scouts, may request funds from the Juliette Fund to pay for council-approved events at the council or Service Unit level, official insignia and uniforms, GSUSA destinations, camp, and membership dues and/or council service fee for membership. Funds should be requested on the Opportunity Fund form and specifying “Juliette Fund” along with the girl’s name.
Application Process: Applications are reviewed regularly. Approval notifications are emailed to the requester, as well as the Troop Leader, if necessary. Funds cannot be requested retroactively or issued as reimbursements for money paid out-of-pocket. This form is not used to request camp assistance; please use a Campership Application unless you are specifically accessing Juliette Funds.
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