Can Our Booster Club Be a Nonprofit and Not Be a 501(c)(3)?
Whether you are just starting a booster club or have been managing one for some time, you should know the difference between non-profit status and 501(c)(3) status. Both have different qualification requirements and benefits that booster club members should be aware of.
What Is the Difference Between a Nonprofit and a 501(c)(3)?
Some people use non-profit and 501(c)(3) interchangeably, but they are not the same.
Nonprofits are usually corporations that exist for a nonprofit purpose, like museums, public hospitals, and public schools. On the other hand, a 501(c)(3) is a nonprofit organization that has tax-exempt status from the IRS. The IRS generally only grants 501(c)(3) status to nonprofits that run charitable programs.
There are special requirements to gain 501(c)(3) status. For example, an organization may not:
Distribute earnings to any private individual
Attempt to influence legislation
Participate in any campaign activity
Be operated for the benefit of private interests
It is possible that your club is registered as a nonprofit but has not taken the steps to become a tax-exempt 501(c)(3) organization at the federal level. However, this means that any revenue made by the club would be considered “profits,” which can be taxable.
Your club may be able to save a substantial amount of money in tax liability by gaining 501(c)(3) status. This additional revenue can help the club grow and invest in upgrades like gear, equipment, booster club accounting software, and more.
Not Sure What to Do? Contact an Expert
If your booster club hasn’t filed for 501(c)(3) status, it’s probably because no one has taken the time to research and file the paperwork. Dealing with the IRS and tax questions can be overwhelming for anyone, especially volunteers who are already stretched thin.
To help you with the process, you can find a nonprofit accounting firm or consult an expert who can help you understand the benefits and implications of filing and can assist you with the paperwork.
While your club may be hesitant to take on another expense, utilizing a filing service like Parentbooster USA Inc. is worth every penny. Parentbooster USA is a one-of-a-kind service that handles tax paperwork for booster clubs. It helps with school booster club tax-exempt status filing and takes the burden off your plate.
If you’ve been putting off catching up on your booster club’s tax status, now is the time. It is well worth the effort to ensure that your organization is getting all the benefits it is entitled to.
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Booster Club Software
In today’s digital world, you use computers and software for everything from shopping to communicating to working. Have you ever considered software for your booster club? Booster club software can simplify your life, free up more time for fundraising, and make your organization run more efficiently.
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What Is the Best App for Booster Clubs?
Almost everyone uses apps on a daily basis to navigate, communicate, transact, and more. In many ways, apps can make life easier and more convenient. Booster club software, along with a mobile app, can do the same for your organization. An app can simplify day-to-day management, improve communication, and make your life easier, all in one location.
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What Is the Best Booster Club Software?
If you are looking to improve your booster club’s performance and get more out of your volunteer hours, booster club software is a great solution. BoosterHub is the only software and mobile app designed specifically for booster clubs. While some other apps offer services that booster clubs can use, they are not specialized and don’t consider booster clubs' specific needs.