Booster News: Tax Alert!

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While some booster club board members are focusing on recruitment, funding requests, and fundraisers, treasurers should take a minute right now to think about tax filings. Nonprofits are required to file a tax return, even if they don’t owe any taxes. Small organizations with under $50,000 in gross receipts have to file, too. However, they can use a 990-N “postcard,” which is more simple than regular nonprofit filing. Either way, it’s time to start gathering receipts and training new volunteers … [Read more...]

How to Write Booster Club Bylaws Like a Founding Father

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If you’re drafting a set of bylaws for the first time, don’t worry.  Anyone who’s taken a high school civics class or worked for an institution intuitively understands bylaws. Like the U.S. constitution or an employee handbook, bylaws enumerate rights and responsibilities. The process of writing bylaws is like a structured conversation about what those responsibilities should be and how the club should conduct business. How to structure bylaws and what to include will vary depending on the club. … [Read more...]

Booster News: Booster Club Loses Nonprofit Status

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Booster clubs can lose non-profit status with the IRS. A recent Forbes article brought this to our attention again, highlighting an IRS ruling from late August. “Capital Gymnastics operated in a manner that allowed substantial private inurement,” said the ruling. “[Capital Gymnastics] promoted private, non-public interests.” How did Capital Gymnastics ruin it’s 501(c)(3) status? Using a point system. Parents who didn’t want to fundraise paid, while other parents did collective fundraising … [Read more...]

How to Start a Booster Club

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This is my step-by-step guide to starting a booster club. It’s intended to be a checklist, not an exhaustive manual. You can click links for more detailed advice on how to accomplish each step. I also put them in what I believe to be the correct order of tasks for starting a booster club. For example, you don’t want to register with the IRS with one mission statement, and then realize that the school doesn’t approve of its governance structure, or waste time trying to get a business bank account … [Read more...]

3 Ways to Get 501(c)(3) Status and Become a Nonprofit Booster Club

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Thinking about starting a booster club? Not sure how to certify it as a nonprofit organization? As you may know, becoming a nonprofit makes your club tax-free* and allows donors to make tax-deductible donations. But if you’re starting a new club or resurrecting an old one, it can be a daunting task. Don’t worry! Others have come before you, and done what you’re about to do. There are at least three ways to become a nonprofit, or more specifically, an IRS-designated 501(c)(3). I’m not a lawyer, … [Read more...]