For booster clubs

Form 990-N for booster clubs: what your treasurer needs to know

A school booster club is usually a separate nonprofit from the school, so it needs its own EIN and files its own IRS return each year. If gross receipts are normally $50,000 or less, that's Form 990-N, free at irs.gov. Count every dollar of concessions and fundraising, before expenses, and don't tie what a family pays to what their child gets.

Is our booster club part of the school?

Usually not. School districts and state auditors treat booster clubs as separate organizations:

• Ohio's state auditor calls them non-school organizations. It says they shouldn't handle public funds, should clearly set themselves apart from the district, and shouldn't use the district's tax ID or sales-tax exemption numbers (Ohio Auditor of State).
• Gooding School District (Idaho) requires support groups to keep their own accounts and bars them from using the district's tax ID (Gooding SD 231).

So your club needs its own EIN (employer identification number). If it's recognized as tax-exempt, it files its own annual return. Booster clubs have traditionally been recognized under section 501(c)(3), or 501(j) for amateur sports (IRS Chief Counsel memo).

Which return do we file?

That depends on gross receipts, meaning everything the club took in from all sources, without subtracting costs (IRS):

• Normally $50,000 or less: Form 990-N, the e-Postcard.
• Above that: Form 990-EZ or 990. See 990-N vs 990-EZ.

For a booster club, that means the full price of concessions, spirit wear, program ads, raffle tickets and event admissions all count. If the concession stand took in $20,000 and the food cost $9,000, $20,000 counts. "Normally" is an average over several years; see what normally $50,000 or less means.

When is it due?

The 15th day of the fifth month after your fiscal year ends (IRS). Many booster clubs follow the school year; Gooding SD, for example, has its support groups report on a July 1 to June 30 year (Gooding SD 231).

• Year ends June 30: tax year 2025 is due Monday, November 16, 2026.
• Year ends December 31: tax year 2026 is due Monday, May 17, 2027.

There's no extension for the e-Postcard. Other year ends: due dates by fiscal year end.

The rule booster clubs most often get wrong

Don't credit fundraising to individual students. IRS training material explains it this way (IRS):

• Point systems are the problem. A club that requires each family to fundraise in proportion to what its child receives (a "point system") is directing its earnings to specific families, and such a club can't qualify for exemption.
• Open support is fine. A club that charges no dues, makes fundraising optional and supports every team member, whether or not their parents help, can qualify under 501(c)(3).
• School programs get some leeway. School-run programs, where the school chooses participants and money often goes to the school, are viewed more favorably.
• Scholarships can still cross the line. Awards tied to a parent's fundraising hours are a problem.

Ask a tax professional before setting up any per-student account.

Can parents deduct what they pay the club?

Only partly, if they get something for it. An IRS Chief Counsel memo says required dues or fundraising payments are deductible only to the extent they're more than the value of what the family receives. A gift of $250 or more needs a written acknowledgment from the club (IRS Chief Counsel memo).

Do concessions count as "business" income?

They count toward gross receipts either way. Whether they're also taxable unrelated business income is a separate question. The IRS's training text says concessions, meet fees and admissions at a club's own events ordinarily aren't unrelated business income. Program ad sales usually are, unless volunteers do the work (IRS).

The IRS also excludes activities run substantially by unpaid volunteers, and sales of donated merchandise (IRS Publication 598). If your club runs a large paid operation, ask an accountant.

What do schools and state associations expect?

That varies; ask your district and your state athletic association. Examples:

• Texas (UIL): booster clubs fall under the superintendent's authority. They should give members regular financial statements of receipts and spending, kept on file at the school. Coaches who run the activity shouldn't sign the club's checks (UIL Texas).
• Idaho (Gooding SD): an annual financial report to the superintendent and an annual audit of the records (Gooding SD 231).
• Ohio: public-school booster clubs are exempt from the state's charitable-solicitation registration (Ohio Rev. Code §1716.03). Other state rules may still apply.

Who files it?

Usually the treasurer, signing in with their own Login.gov or ID.me account and adding the club's EIN. See 990-N login help. Hand the EIN, fiscal year and last filing to the next treasurer.

What if we've missed a year?

There's no penalty for a late e-Postcard, but three missed years in a row end tax-exempt status automatically (IRS). See two years behind, or check what the IRS has on record:

Check your booster club's filing status

Sources

• IRS, Gross receipts defined; Form 990-N FAQs: When to file; Publication 598
• IRS, Athletic booster clubs: are they exempt? (EO training text, 1993)
• IRS Office of Chief Counsel, Booster club fundraising (PMTA 2011-04)
• Ohio Auditor of State, Guidelines for student activity programs; Ohio Rev. Code §1716.03
• University Interscholastic League (Texas), Guidelines for booster clubs
• Gooding Joint School District No. 231, Policy 4200: school support organizations