A booster club that qualifies for IRS 501(c)(3) status must file its tax return by the 15th day of the fifth month after the end of the organization’s tax year. For booster clubs that operate on a calendar year-end, the due date is May 15th. However, the booster club may choose another fiscal year-end, which can result in a different due date.
Booster Club and Taxes
It’s important to remember that while your booster club may not owe any taxes due to a 501(c)(3) status, it still must file a return reporting earnings and expenses. There are three different common return types that a booster club may file.
990-N:Used for organizations with less than $50,000 in revenue for the year
990-EZ:Filed by booster clubs with revenues between $50,000 and $200,000
990: Must be filed by booster clubs with revenues over $200,000 for the year
Most booster clubs will file either a 990-N or a 990-EZ. If the tax return is not filed on time, the booster club may lose its tax-exempt status.
Booster Club Tax Filing Requirements
Booster clubs must report their revenues and expenses for the year. It’s important that this information is tracked carefully and accurately. Utilizing a software app designed to manage the accounting for a booster club is a great way to minimize any errors or oversights. This process is especially beneficial if the members responsible for overseeing a club’s finances change during the year.
In addition to reporting earnings, the tax return must include the names of the principal officers of the booster club for the year and an address for the organization. For booster clubs that have non-typical transactions, additional information may be required.
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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.