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BSA National Financial Reorganization
September 17, 2021
Capitol Area Council Statement Regarding National Boy Scouts of America Bankruptcy
The Capitol Area Council, Boy Scouts of America, is locally incorporated, financially sound, and fully committed to continue providing safe and positive youth development in all Central Texas communities.
The National Boy Scouts of America’s Chapter 11 agreement calls for local councils to contribute to the Trust for Survivors, allowing the national organization to emerge from bankruptcy. Our council’s board has approved a voluntary contribution to this national trust using unrestricted long-term local assets. We will not sell any properties nor use any Friends of Scouting or other donor-designated funds for this purpose.
This contribution is the right thing to do for anyone who was harmed in decades past, while preserving the program that benefits so many young people now and in the future.
There is an important update for Charter Partners and unit leaders; please click here to read it.
The national organization of the Boy Scouts of America (BSA) filed for Chapter 11 bankruptcy to achieve two key objectives: equitably compensate victims who were harmed during their time in Scouting and continue to carry out Scouting’s mission for years to come.
We understand you may have questions about these issues and things you will see in the news. To that end, the national organization has established a dedicated restructuring website, www.BSArestructuring.org.
This site includes a helpful Resources page, where you will find a short video explaining what Chapter 11 means for Scouting, as well as a FAQ. The site’s Milestones page will be your best source for the latest updates throughout this process.
Scouting is safer now than ever before. BSA has worked for decades to develop some of the strongest expert-informed youth protection policies found in any youth-serving organization. From mandatory youth protection training to policies like two-deep leadership, no one-on-one interaction between youth and adults, and mandatory reporting of any suspected abuse, our volunteers and employees take youth protection policies and procedures extremely seriously and do their part to help keep kids safe.
If you visit this page on our website, you will find links to:
- Our safeguards and standards to prevent potential abuse
- Scouting.org, where you can create an account and take Scouting’s mandatory Youth Protection Training for all volunteers and employees (the training is free and you do not have to be a member of Scouting to take the training)
- Our policies and procedures for reporting suspected abuse
- Our counseling resources for anyone abused in Scouting, available for free and as long as the victim wants it
Does this action impact local Scouting in our council?
No. Our council and National BSA are different entities with separate finances. Through years of good financial stewardship and governance, we, the Capitol Area Council, have built a sound balance sheet, a strong endowment, and have very little debt.
Here are some additional facts to remember:
- The Capitol Area Council is a 501(c)(3) entity incorporated in Texas. Our camps, our Scout Center, our bank funds and endowment are owned and controlled locally by the Capitol Area Council.
- The Capitol Area Council is one of the strongest councils in the BSA from the perspectives of fiscal health, program quality, board and volunteer dedication, and staff commitment and talent.
- Councils receive no funding from the National BSA organization. In fact, we pay fees to National BSA as a part of our charter agreement and for specific services. We receive value back from the national organization, but we operate as a financially independent not-for-profit organization.
- The nature of the relationship for a council with the National BSA organization is that our council is the holder of a charter to conduct the Boy Scouts of America programs in our defined territory.
- Areas where we partner with National BSA for business purposes includes things such as several insurance programs, services for IT, and expertise related to camping and Youth Protection. Also important to note is local council employee benefits, such as healthcare and retirement, are funded by each council through programs controlled and operated by National BSA. By law, the retirement assets for employees are the assets of the employees, not National BSA. Therefore, any financial restructuring of National BSA will have no impact on those retirement assets.
- The strength of Scouting for more than 100 years has been its local domain. Each pack, troop, crew, ship, post, and lab is owned by its chartered organization, which is typically a place of worship, service club or educational institution. Each council is locally incorporated in the specific state where it operates.
- Dollars given locally to the Capitol Area Council stay with the Capitol Area Council, whether they are donations from Friend of Scouting, the Distinguished Citizen Award Dinner, James E West Fellowship, Tom Wooten Society, or any other fundraising event or program.
Frequently Asked Questions
Q. Does this bankruptcy mean the national Boy Scouts of America is going out of business?
A. No. This action achieves the duel imperatives of equitably compensating victims of abuse and continuing to carry out Scouting’s mission to serve youth, families, and local communities throughout the country.
Q. What is the BSA doing to protect Scouts from abuse?
A. Several years ago, BSA adopted some of the strongest barriers to child abuse found anywhere and have continued to improve upon them. Today, these barriers are considered by most experts in the field to be the gold standard for youth-serving organizations. Locally, we all have a role in youth protection through keeping training current and enforcing a culture within our units of two-deep leadership and following state-mandated reporting guidelines for any suspicion of abuse. The BSA is committed to helping abuse victims heal through fair compensation and unlimited counseling for victims and their families by a provider of their choice.
Q. Is our local council filing for bankruptcy?
A. No. Our council is an independent nonprofit organization. We own and control our camps, council service center, bank funds, and investments. We receive no funding from the national BSA organization.
Q. Is local Scouting programming continuing?
A. Absolutely, all programming is continuing as scheduled. This includes your regular unit meetings and activities, as well as district and council events. All National policies, like Youth Protection and the Guide to Safe Scouting, are in still in place.
Q. How does this impact our donors/fundraising?
A. Your continued support is critical to our mission of delivering Scouting locally. Friends of Scouting (FOS) and other annual donations to our council will stay local and continue to be used to pay for necessary day-to-day expenses that are critical to our ability to provide quality Scouting programs in our many communities across Central Texas. Additionally, any restricted donation to our council that has been made or is being considered by a prospective donor can only be used for its designated purpose.