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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Does My Booster Club Need to Collect Sales Tax?
When managing a booster club, one of your top goals is generating as much revenue as possible for the athletic team or fine arts group you are supporting. One way you can maximize your revenue is by taking advantage of any price breaks and tax exemptions offered in your state. This brings us to the topic at hand: booster clubs and sales tax. Sales tax is a fee imposed by state governments on transactions involving services or goods. Because these fees are primarily imposed at the state and not the federal level, tax percentages vary from state to state. So does your booster club have to collect sales tax? Let’s explore.
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BoosterHub – The #1 Booster Club Software
In an October 2022 press release, Yahoo! Finance recognized BoosterHub as the #1 booster club software in this emerging industry. Since it launched, BoosterHub has experienced championship-level growth. In just nine months, BoosterHub surpassed the $1 million gross merchandise volume threshold.
BoosterHub’s overnight success speaks to the fact that the dynamic platform fills a long-standing void in the school booster club space. As of the press release, BoosterHub has more than 5,000 members and facilitated over 45,000 transactions. Our platform has an incredibly low single-digit churn rate, which is undoubtedly due to the fact that our customers are extremely satisfied with the product.
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Does My Concession Stand Need a Food Service License?
A concession stand is one of the most effective ways for your booster club to raise money for sports teams. However, if you have never run a concession stand before, you undoubtedly have tons of questions about it. Running a successful concession stand is not quite as simple as it may appear. In order to do so, you need to familiarize yourself with food service requirements, explore state tax laws, and much more.
The good news is that there are great resources to jumpstart your efforts. In addition to creating this beginner’s guide, the team at BoosterHub frequently tackles important concession-related topics. In this post, we take a deep dive into food service licensing requirements for concession stands. Whether you are already running a successful concession stand or have recently taken over these responsibilities for your booster club, this playbook will help you comply with state and local guidelines.