There are few things more fun than a night of games and gambling. A booster club casino night fundraiser can be a fun way to get people involved and raise a little (or a lot of) money. Even if your booster club has no intention of setting up a roulette table, you might still need to take a few additional steps to legally prepare for this event. If you want to host a casino night, your booster club must meet certain criteria to host one of these events.
While a casino night is one of the more creative booster club fundraiser ideas, you should know that there are strict rules from the IRS about what is gambling and what is not. Gambling, also referred to as gaming by the IRS, can encompass many activities, including:
As you can see, even simple things like Superbowl Squares can qualify as gambling and require a special license from the state or your local agency. To ensure that your booster club is covered by the law, you need to inquire with the state about what requirements you must uphold to host a fundraiser like this.
Check Your State Rules
Each state has various rules on how and when gaming fundraisers can be done. In some states, it may require a license.
Check with Tax Professionals
Some additional rules go along with casino night fundraisers. For example, the booster club may be required to submit a notice of winnings over a certain amount to the IRS on a W-2G form. Alternatively, you might be required to withhold income tax or pay a wagering excise tax to the IRS. A qualified tax professional can help you parse out the details of exactly what needs to happen for you to legally operate a casino night fundraiser. Make sure to talk with them early in the process to have things run as smoothly as possible.
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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.