What you should know about legally operating a school booster club Parent Booster USA, Inc.

There are more than 100,000 K-12 public and private schools in the United States.

Most schools have more than one booster club – Parent Teacher Organization, music, sports, academic and other booster groups.

Most booster clubs have no idea how to operate legally.

The IRS lists just over 3500 parent teacher organizations on its file of tax-exempt organizations.

There are thousands more that don’t have tax-exempt status.

All booster clubs are REQUIRED to file an IRS tax return.

Thousands of booster clubs aren’t filing a tax return.

Parent Booster USA recommends that school booster clubs be STRUCTURED as: 1) nonprofit corporations; 2) with bylaws; and 3) 501(c)(3) status (federal tax exemption)

Incorporation provides: 1) a well-understood legal structure; 2) liability protection; and, 3) additional credibility.

Bylaws: 1) guide the organization on how to operate, including how and when to conduct elections and meetings; 2) provide policies for handling conflicts of interest, financial and other matters.

Federal 501(c)(3) tax-exempt status provides: 1) deductibility of gifts and donations; 2) eligibility for grants; and, 3) qualify to file IRS Form 990 and be exempt from federal income tax.

2 Ways to become 501(c)(3) Apply to IRS independently Join Parent Booster USA Complete IRS Form 1023 Pay IRS filing fee ($850 if gross income over $10,000/year; $400 for smaller organizations) Wait 6 months No ongoing support Complete simple online membership application Pay joining fee ($ (c)(3) only; $295 with incorporation & EIN) Immediate 501(c)(3) status Ongoing support, including reminders to file 990 required to keep tax exempt status

Immediate tax-exemption, guidance and support for school booster clubs