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.
You may also like this
No items found.
Our Club Has Been Using Charms and Has Student Accounts — Why Is This a Bad Idea?
There’s a lot to like about Charms Office Assistant. This program has been a music program stalwart and can help schools and boosters communicate with students, manage assessment data, and collect payments.
We get the appeal of using Charms to support your band’s billing activities — the system is already in place, and you can collect payments from students and parents all in one platform. However, Charms wasn’t really designed for booster clubs. It was really designed to be used by the school or music director.
Most booster clubs are non-profits. The activities and best practices are different. For instance, non-profits can not fundraise for the benefit of one person. They must fundraise for the group as a whole. Also, fees can not be mandatory in a non-profit. You can certainly say “100% participation is highly encouraged,” but you can not require anyone to pay to participate.
By replacing Charms with a purpose-built booster solution, your club can:
No items found.
Round Rock Volleyball Is Ahead of the Game by Using BoosterHub MVP
After each sports season, the coaching staff gets together to review what went well and what they can do better next year. Often, coaches will turn to league winners for inspiration. During this process, they analyze film, look at stats, and explore ways to incorporate these insights into their own coaching strategies.
Your athletic booster club can apply these same principles to get better at fundraising during the off-season. On that note, let’s turn our attention to the Round Rock Volleyball booster club and how they’re delivering for student athletes with BoosterHub.
No items found.
Is SMS a Good Way to Communicate with Donors and Booster Club Members?
Finding effective ways to communicate with donors and members is a problem as old as your school’s rivalry with the neighboring high school football team. And just like that generation-spanning rivalry, you never seem to be able to maintain the upper hand for long.
During your time as an athletic booster club member, you’ve probably tried a variety of communication techniques, from phone calls to flyers and even email. If that’s the case, you know that none of these strategies are especially effective for relaying information to your membership.
While you’ve probably considered using SMS messaging to talk to donors and booster club members, you may be hesitant to make yet another change to your communication strategy. But trust us — SMS messaging is the way to go. With the right SMS messaging tools in place, you can effortlessly share information, keep parents in the loop about upcoming events, and make 2023 your most productive fundraising year ever.