Question: I have a business credit card in my name with the school’s address that I only use for ASB purchases. All cash rewards go back to the ASB. My district isn’t quite sure what to make of it. Am I doing anything wrong by having that card? Purchases are preapproved by students.

Response: There are a few concerns FCMAT has regarding this situation, and some are about protecting your interests.

Most ASB organizations typically do not utilize credit cards to transact their business. Since credit cards should not be issued in the name of an ASB for a whole host of reasons, in particular an ASB has a relatively short life of one year and they are comprised mostly of minors under the age of 18, the district should take responsibility for any credit card transactions necessary for ASB operations.

Also, FCMAT recommends you not utilize a credit card issued in your name for the business purposes of another organization, even one formed to benefit the students. As owner of the card, you are personally liable to the credit card company should the ASB choose to not pay for any items charged to the card. Further, you are utilizing your personal credit record and good credit standing to benefit a third party, and we question if that is in your best interest. If the students need a credit card, the district should put its credit on the line for the students of the district, that’s their responsibility.

FCMAT recommends you review your districts board policy regarding utilization of credit cards and determine how this circumstance fits within the guidelines of that policy and adjust your practices as necessary. FCMAT further recommends consulting with your school district business office to determine best practices regarding credit card usage by your ASB.

10/2/08