Troop Credit Card - Question

[Billiken]

Does your troop (i.e. your troop leadership) have a troop credit card?

[FrankJ]

No our troop does not have a credit card. We either pay by troop check or have a leader pay & then reimbursed the leader.

The two difficulties I see with a credit card is: 1) It would probably need to be at least cosponsored by the charter org. 2) More difficult to control expenses since the money can be spent before approval.

In situations were desirable maybe a prepaid card could be used?

[PGH]

We don't have a troop CC. We use checks written directly from a troop bank account or have a leader make a payment and then reimburse the leader from the checking account.

[Mrw]

We do the same as PGH and FrankJ.

[Billiken]

The reason I was thinking about it is, we now have to pay sales tax on troop purchases at our local Scout Shop. You can avoid the sales tax (treated as a tax-exempt entity) if paying by troop check, cash, or troop credit card.

I might just apply for a credit card and have the name:

Billiken
Boy Scout Troop XXX

I'd be financial responsible for it and only use it for troop purchases.

[Hubert]

The reason I was thinking about it is, we now have to pay sales tax on troop purchases at our local Scout Shop. You can avoid the sales tax (treated as a tax-exempt entity) if paying by troop check, cash, or troop credit card.

I might just apply for a credit card and have the name:

Billiken
Boy Scout Troop XXX

I'd be financial responsible for it and only use it for troop purchases.

But what if your ill or out of town? Thats why we just use a check system. We have checks, and I believe two must sign them.

[smtroop168]

We have a Troop Debit Card as well as checks. Works great when we need to make reservations over the phone for places such as Laurel Caverns

[Chief J]

The reason I was thinking about it is, we now have to pay sales tax on troop purchases at our local Scout Shop. You can avoid the sales tax (treated as a tax-exempt entity) if paying by troop check, cash, or troop credit card.

I might just apply for a credit card and have the name:

Billiken
Boy Scout Troop XXX

I'd be financial responsible for it and only use it for troop purchases.

I will be the bearer of bad news having been a former state tax auditor, this is still your card and would not entitle you to make purchases tax exempt.

All states require an exemption certificate or statement that states why the purhcase is tax exempt. In Greater Pittsburgh Council, they have an exemption book, where the reason for exemption is stated at the top of each page, and then the exempt purchaser lists the date, the invoice number, invoice amount. his unit, the reason for exemption (charitable purchase or resale) and signs.

I personally see Troop Credit cards as a dangerous thing and would not recomend any units I work with use them. This is from a personal standpoint as well as looking a little further.

All Troop Funds really belong to the Chartering Organization. And likewise, the Chartering Organization would be the ones responsible for any lines of credit advanced under a credit card. Would your CO really allow you to have a credit card in their name? What are the controls that will be in place? what will be the legal implications for an individual who misappropriates funds under the credit card? What would be the credit limit on the card? What are the spending limits on the card per purchase? Who are the authorized users? Who is responsible for the service fees or interest if the balance is not paid off in full? etc. etc.

The units I am affiliated with have a Troop Checking Account and all purchases that can be made by check are drawn on the Troop checks. If we need a credit card to secure a reservation, or other reason, an adult will use their personal credit card and be timely reimbursed by the Troop by Troop Check.

Please think this one trough before jumping in, I personally see no good becoming of this.

Chief J

[Billiken]

But what if your ill or out of town? Thats why we just use a check system. We have checks, and I believe two must sign them.

We still have a checking account and reimbursement when something is paid for with personal funds/check/credit card.

[Billiken]

Chief J:

Thanks for your insights.

My thought was that I would be financially responsible for credit card.
I'd still have to ask our Troop Treasurer for reimbursement.

The Scout Shop in Cleveland does keep a log of tax exempt purchases, including unit, invoice #, date, COR, and purchaser signature.

[smtroop168]

As I said, ours is a debit card that works great. We paid our summer camp fees over the web through doubleknot.com Saved 41 cents too Our committee didn't want to venture into the credit card world either.

[Lynda J]

I see the possibility of real problems with a Troop credit card or debit card.
How does a business know who is the authorized signature on the card.
I work retail part time and we have run into this with cards from chuch groups. If their name isn't on the card we can't accept it. Who can sign. if it gets lost or stolen who is responsible.

I know that using cards to make reservations is easy. What we do is our SM makes the reservations using his card. Then the troop writes him a check.

[smtroop168]

All I can tell you is that it works for us and we have never been questioned even though we've had multiple people use it.

I understand your concerns considering some of the financial nightmares the BSA has seen with embezzlement of funds. We have one locally that approached $30,000.

I fall back on "A Scout is Trustworthy" when we allow use of the card.

[Hubert]

I fall back on "A Scout is Trustworthy" when we allow use of the card.

I love that statement. But there are some, SOME, that get ahold of money, and everything changes. Im not saying it will happen, its least expected from a scout, but its possible.

[hacimsaalk]

The reason I was thinking about it is, we now have to pay sales tax on troop purchases at our local Scout Shop. You can avoid the sales tax (treated as a tax-exempt entity) if paying by troop check, cash, or troop credit card.

I might just apply for a credit card and have the name:

Billiken
Boy Scout Troop XXX

I'd be financial responsible for it and only use it for troop purchases.

But what if your ill or out of town? Thats why we just use a check system. We have checks, and I believe two must sign them.

we have checks. 2 sign (the treasurer and 1 other committee member).

i know here in PA we are considered a tax-exempt organization, no matter how we pay.

[Billiken]

we have checks. 2 sign (the treasurer and 1 other committee member).

Two people can sign a check

OR

Every check requires two signatures??????????????

[hacimsaalk]

we have checks. 2 sign (the treasurer and 1 other committee member).

Two people can sign a check

OR

Every check requires two signatures??????????????

EVERY check requires two signatures. there are 2 lines. if both arent signed, the check doesnt goes through it comes back just like a NSF.

[cescout]

We only have debit cards and a check book.