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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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.