Screen Shot 2014-12-05 at 2.55.34 PMShould Your Booster Club be a Nonprofit Organization?

Take a look at the following facts regarding Booster Clubs on this topic:

FACT:     Due to the potential for club irregularities and the related liabilities, many school districts are:

  • Refusing to allow booster clubs to use the district’s tax exemption.
  • Asking clubs to secure their own exempt status.
  • Requiring greater financial accountability from all booster organizations

FACT:      An organization must apply to the IRS for a tax exemption. Its status will be as a 501(c)(3) public charity.

FACT:      If a club (or a group of clubs) projects more than $50,000 in annual revenue it must file IRS form 1023 – application for exempt status.

FACT:      If a booster club (or group of clubs) projects less than $50,000 in annual revenue, it MAY qualify to file a “streamlined application,” which is quicker and less expensive than a full 1023 application.

FACT:      While booster organizations may file for a tax exemption as an “association” or as a “corporation,” it is highly suggested the club choose to incorporate for the purpose of providing it with the best structure and accountability.

2 Different Application Paths

  • Streamlined IRS Application (if eligible)
  • Incorporation – Includes Anchor completing all your organizational documents such as Articles of Incorporation, Bylaws, Conflict of Interest Policy, and any state required documents.

    $700
    (plus any additional state fee in excess of $25)

  • Tax Exempt Application

    $300

  • IRS Fee

    $400

  • Full IRS Application
  • Incorporation – Includes Anchor completing all your organizational documents such as Articles of Incorporation, Bylaws, Conflict of Interest Policy, and any state required documents.

    $700
    (plus any additional state fee in excess of $25)

  • Tax Exempt Application

    $1700

  • IRS Fee

    $850

Chris Feris

I’ve worked with Dale through our state professional association and local school district. His help was invaluable in sorting out issues and helping establish nonprofits for a number of area booster organizations.”

Chris FerisPresident Elect for Texas High School Athletic Directors Association