While booster clubs enjoy some tax benefits, that doesn’t mean they are immune from filing paperwork with the IRS.
Between fundraising, managing day-to-day operations, and keeping track of expenses, it can be easy to forget about other booster club and tax requirements. Here’s what to do if you forgot to file and how you can avoid it in the future:
What to Do When You Realize You Didn’t File Taxes
No one is perfect, and every booster club makes mistakes. If you realized you didn’t file your booster club taxes, don’t panic. There is usually a way to correct the error and avoid any kind of serious penalty. Most importantly, address the problem and be transparent with the club.
Don’t Ignore It
The worst thing you can do when you realize you didn’t file taxes is to ignore it. It can be tempting to just file away the paperwork and hope for the best, but it won’t work out in your favor.
Your state tax controller and the IRS are very good at finding organizations that did not file, and you don’t want to end up with a big fine when they realize you didn’t file. The best thing you can do is contact the relevant tax offices and see what you can do to rectify the situation.
Be Transparent with the Club
Forgetting to file taxes may be embarrassing to admit, but it’s important that you are transparent with the other people involved in the club. They donate their time and money, so they deserve to know the full picture of the club's financial state.
Do your best to explain the situation and bring a solution to the table. In the event that you do end up with fines for failure to file, the last thing you want to do is surprise your fellow club members with a bill.
How to Avoid Tax Problems in the Future
If you forgot to file taxes, turn it into a learning opportunity. Take action to prevent the same thing from happening next year. Familiarize yourself with the filing requirements, and consider utilizing a filing service. Using booster club software such as BoosterHub can provide handy guardrails for your officers as they conduct business throughout the year.
Familiarize Yourself with Booster Club Tax Filing Requirements
Booster club tax filing requirements can actually be pretty complicated, but familiarizing yourself with the basics can go a long way in preventing mistakes in the future. At a bare minimum, identify the tax filing deadlines and put them on a calendar so you will be reminded well in advance.
You should also take time during the year to ensure you have the right tools to produce the information you need to file.
Use a Filing Service
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 all of the IRS and state paperwork for booster clubs.
Founded by an experienced tax law attorney, the organization ensures that you’ll have total peace of mind when it comes to your club’s taxes.
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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:
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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.
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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.