The Badge Archive

The answer depends largely on your local council’s rules and broader financial regulations. From responses shared by various leaders, the majority report that their councils do not allow direct cash gifts or gift cards for scouts.

Why Can’t Troops Give Cash or Gift Cards?

The overwhelming response from experienced leaders is that most councils do not allow direct cash gifts or gift cards for scouts. These funds are meant to support troop activities—not individual financial benefit. Here’s what leaders have reported:

• 💰 Cash gifts are not permitted. Scouts cannot receive direct cash payments from troop funds.
• 🎁 Gift cards fall under the same restriction. While it might seem harmless to give each scout a craft store or restaurant gift card, most councils prohibit this practice.
• 🏦 Savings bonds raise additional concerns. While incorporating savings bonds into a financial literacy badge may seem like a great idea, leaders caution that troop funds may not be used for long-term financial investments for individual scouts.

What Leaders Have Experienced

Out of the responses collected, at least five leaders confirmed that their councils prohibit giving scouts money, savings bonds, or gift cards, citing that it falls under financial restrictions for IRS rules on nonprofit spending. Several emphasized that while scouts can receive funds for specific purposes—such as a field trip budgeted per scout—directly handing out money or gift cards without a pre-approved structure is typically not permitted.

Another key takeaway is the importance of checking with your local council, as policies vary. While some councils require troop accounts to be cleared by September 30 each year, others have more flexible deadlines. However, once scouts are no longer registered for the next membership year, they cannot receive funds from a previous troop’s bank account.

Disbanding Troops – Use Up Remaining Troop Funds

When a Troop Disbands, the funds usually return to the local service unit/community or council. Most troops choose to spend the remaining funds before the troop disbands. If leaders cannot distribute money directly, here are some approved ways they’ve successfully used remaining funds:

• Plan a Final Experience: Host a troop trip to the beach, an amusement park, a themed hotel stay, or a camping trip. These shared experiences create lasting memories while allowing funds to be spent collectively.
• Service Projects: Instead of giving scouts money, use funds to purchase supplies for service initiatives—making care baskets for shelters, goodie bags for seniors, chemo bags for patients, or donating to an animal rescue organization.
• Educational Purchases: Consider buying materials for badge work related to financial literacy, entrepreneurship, or STEM activities. Scouts can engage in a budget-management exercise where they decide as a group how to allocate the funds on a shared goal.
• Craft Store Shopping Trip: Some leaders reported being allowed to take scouts to a craft store, setting a budget per scout, and allowing them to pick their own supplies—while purchasing collectively at checkout rather than handing them individual gift cards.
• Troop Equipment: If future scouts will inherit some troop assets, consider purchasing durable supplies like tents, cooking gear, or craft tools that will benefit future members.
• Gift a New Troop: Many troops find joy in creating a “New Troop Kit” with supplies a new Daisy or Brownie troop will need to earn petals or badges for their first year. The local service unit/community can help get a New Troop Kit to the right troop in the fall.

Final Advice: Check First

Before making any financial decisions, always confirm with your local council what is and isn’t allowed. Rules can vary widely, and while one troop might get approval for a creative financial literacy project, another may face restrictions due to how their local council interprets IRS nonprofit guidelines. When in doubt, choosing an experience-based or service-oriented approach ensures that funds benefit scouts while staying within regulations.

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for Cadette, Senior, and Ambassador Scouts

This is a supportive community for Cadette, Senior, and Ambassador Girl Scout leaders. This group offers solutions to keep older scouts engaged in scouting amidst their busy lives. Share strategies, tackle challenges, and exchange ideas for fun, meaningful activities that resonate with teens and build lasting connections.

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