Are Donations to a Booster Club Tax Deductible?

Are donations to a booster club tax deductible? In the past, donations to a booster club with a 501(c)(3) nonprofit designation entitled you to a write-off on your tax return equal to 80% of the monetary value, even if goods or services were received. For example, if you donated $10,000 to a booster club in exchange for great seats at a football game, you may only be able to write off $8,000 on your taxes.

In 2019, the tax rules were changed. Donations to nonprofit booster clubs may still be written off, but only if they are made with no exchange of goods or services. Thus, if you donate $10,000 to your favorite booster club and receive no benefits for doing so, you can include the entire amount as a charitable donation to offset taxable income.Booster clubs that don’t have a 501(c)(3) nonprofit designation may accept donations, but contributors may not write them off as charitable giving for tax purposes. The booster club usually must declare any donations received as income and file a tax return.

What Is 501(c)(3) Status?

501(c)(3) status is given to nonprofits that are considered public charities, private foundations, or private operating foundations. Booster clubs that have this status are able to:

  • Participate in fundraising programs
  • Receive donations that are tax-deductible on the donor’s tax return
  • Be exempt from paying federal income tax on their earnings
  • Apply for exemption from state sales tax
  • Qualify for state gambling licenses to operate BINGO and other games of chance

Receiving a 501(c)(3) status is essential for booster clubs that seek to raise money to support their members.

Booster Club Software

If you are involved in running a booster club, you may use a lot of different applications to manage your finances. BoosterHub software is designed specifically with booster clubs in mind. It’s set up to manage donations, sales, and activities — all from one easy-to-use app!