A booster club may also have the added benefit of qualifying as a public charity because it furthers an exempt purpose under section 501 (c) (3) of the Internal Revenue Code. For example, the IRS has traditionally recognized 501 (c) (3) tax-exemption for boosters clubs that promote amateur athletics. There have, however, been many issues raised School Principal or Administrator (if the Booster Club is not located at a school) may implement. Also, the Booster Clubs must follow the guidelines of the OSSAA, State and the Federal Government, through the Internal Revenue Service (IRS).. The MPS Booster Club Guidelines do not necessarily include all rules that may apply to your organization. 15 Booster club funds and district funds, including Associate Student Body (ASB) funds, must never be commingled. Booster clubs and the school entity should remain separate, including in the following ways: 1. The booster club name, address, or any other correspondence should never imply any form of responsibility on the part of the ASB or district. The IRS has issues with BG's exempt status application. The court in Capital Gymnastics Booster Club v. Comm., T.C. Memo 2013-193, analyzed the fundraising activity of a gymnastic booster club 10/01/2021. A U.S. Tax Court ruling calls into question the practice of having fundraising benefits pass through to individual families or students. The ruling involved a gymnastics booster club in Virginia. At issue was the club's practice of crediting individual families with points toward their athlete's annual fees and assessments based over the activities of the booster club. We recommend booster clubs be established as a separate legal entity. This means that the booster club can and should control its own activities and finances. The school or other group that is supported, however, can and should control how its facilities are used, and should advise the booster club of its needs. • Booster club boards should, as one of their key functions, create annual budgets and as a group reconcile those budgets on a quarterly or annual basis to closely monitor the in-flow and out-flow of club funds. nonprofit registration requirements, IRS 501(c)(3) tax return filing mandates, state statutes governing nonprofit incorporation A booster club for a band, football team or similar group may qualify for a sales tax exemption on its purchases. After receiving exempt status, the club can hold two one-day tax-free sales or auctions each calendar year. Tax-free sales days cannot be used when selling items for a for-profit retailer (such as candy, gift wrap or similar items), because the booster club is not considered to be the seller. District Booster Clubs shall: 1. Be voluntary and provide unified support for student activities of the school. 2. Encourage involvement by all parents of students participating in the supported activity. 3. Use school facilities only with prior approval of the principal or designee. 4. 2. Select a name. Usually, school-based booster club simply call themselves " (Name of Team) Booster Club.". You should check with your state's secretary of state or corporations office to see if that name is available. 3. Recruit an initial board of directors. To open a bank account, The Booster Club must first obtain an Employer Identification Number (EIN) from the IRS. (See Tax information section) The Booster club shall not use only the school's name on its checks or on its literature.