# Booster Club Fundraising: Rules, Planning, and Practice

> What a 501(c)(3) booster club may and may not do to raise money, how the fundraising year is structured, who on the board owns each part, and where to start.

- URL: https://boosterclub.org/fundraising/
- Section: Fundraising
- Updated: 2026-10-06

Booster club fundraising is the work of raising money from families, businesses, and the community to support a school program, under the rules that come with 501(c)(3) status, the school district's policies, and state law. This section covers those rules and the practice of fundraising: planning the year, sponsorships, donations, online campaigns, events, product sales, grants, volunteers, ethics, and Title IX. Specific fundraiser ideas, with what each one takes and earns, live in [Booster Club Fundraising Ideas](https://boosterclub.org/fundraising-ideas/).

Every officer touches fundraising, but the rules land hardest on the president, who signs agreements and deals with the district, and the treasurer, who receives the money and issues the receipts.

## What a 501(c)(3) Booster Club May Do

A booster club with 501(c)(3) status may raise money from anyone, in almost any lawful way, as long as the money serves its exempt purpose: supporting the school program as a whole. The IRS states the limit directly: a 501(c)(3) organization "must not be organized or operated for the benefit of private interests" ([IRS](https://www.irs.gov/charities-non-profits/charitable-organizations/inurement-private-benefit-charitable-organizations)).

| Allowed | Not allowed |
|---|---|
| Membership drives and voluntary suggested contributions | Requiring families to fundraise or pay for a student to participate |
| Business sponsorships with acknowledgment | Crediting fundraising profits to individual students' fees, trips, or accounts |
| Events, product sales, and concessions run by volunteers | Running club money through a parent's personal account or payment app |
| Grants from foundations, businesses, and civic groups | Spending a restricted gift on something other than its stated purpose |
| Need-based assistance awarded on written criteria | Aid or scholarships sized by how much a family raised or volunteered |
| Raffles, where state law allows and permits are in place | Raffles where state law prohibits them, or without a required license |

The IRS has warned booster clubs about "work and pay or don't play" funding since at least its 1993 guidance ([CPE text](https://www.irs.gov/pub/irs-tege/eotopica93.pdf)), and clubs have lost their exemption over it. [Fundraising Rules for Booster Clubs](https://boosterclub.org/fundraising/rules/) explains why.

## The Fundraising Mix

Healthy clubs draw from several sources so that no single fundraiser carries the budget.

| Source | Strength | Watch for |
|---|---|---|
| Membership and direct giving | Highest return per volunteer hour | Must stay voluntary |
| Business sponsorships | New money from outside the club's families | Acknowledgment wording, district signage rules |
| Events | Community building and visibility | High volunteer cost; permits; the $75 disclosure |
| Product sales | Familiar and easy to start | Real margins, sales tax, seller credits |
| Online campaigns | Reach beyond the school community | Fees, account control, state registration |
| Grants | Funds one-time purchases | Restrictions and reports |
| Concessions | Steady revenue during seasons | Food permits, cash control |

Every gift of $250 or more needs a written acknowledgment, and any payment over $75 that is partly a gift needs a disclosure ([IRS Publication 1771](https://www.irs.gov/pub/irs-pdf/p1771.pdf)).

## The Fundraising Year

Most clubs follow a season structure:

- **Summer:** plan the year, adopt the budget and the fundraising calendar, file district approvals, renew sponsors.
- **Fall:** the membership ask at back-to-school, then one fall fundraiser.
- **Winter:** the year-end giving appeal, acknowledgments, matching gifts, and grant applications.
- **Spring:** the signature event, next year's sponsorship sales, and the budget for next year.

The board decides in advance how many times it will ask each family for money, then fits fundraisers inside that number. See [Booster Club Fundraising Calendar](https://boosterclub.org/fundraising/planning-calendar/).

## Who Does What

| Role | Fundraising responsibilities |
|---|---|
| Board | Approves the budget, the fundraising calendar, vendor and sponsor contracts, and policies |
| President | Owns the district relationship and MOU; signs agreements |
| Fundraising chair or vice president | Builds the calendar; runs or oversees each fundraiser |
| Treasurer | Controls money and accounts; deposits; acknowledgments; restricted funds |
| Secretary | Records every approval in the minutes |
| Volunteer coordinator | Recruits, schedules, and tracks volunteers |

## Pages in This Section

- [Fundraising Rules for Booster Clubs](https://boosterclub.org/fundraising/rules/): private benefit, individual accounts, mandatory fees, joint fundraising, and the other rule layers
- [Booster Club Fundraising Calendar](https://boosterclub.org/fundraising/planning-calendar/): the season structure, asks per family, and spacing
- [School District Fundraising Policies and MOUs](https://boosterclub.org/fundraising/district-policies/): approval, facilities, the school's name and logo, and booster vs. ASB money
- [Corporate Sponsorships for Booster Clubs](https://boosterclub.org/fundraising/sponsorships/): packages, the pitch, acknowledgment vs. advertising, and contracts
- [Accepting Donations as a Booster Club](https://boosterclub.org/fundraising/donations/): cash, in-kind, stock, matching gifts, and receipts
- [Online Fundraising for Booster Clubs](https://boosterclub.org/fundraising/online-fundraising/): platforms, fees, crowdfunding, and state registration
- [Running a Booster Club Fundraising Event](https://boosterclub.org/fundraising/events/): budget, permits, insurance, volunteers, cash, and the report
- [Product Fundraisers for Booster Clubs](https://boosterclub.org/fundraising/product-sales/): margins, sales tax, seller prizes, and inventory
- [Grants for Booster Clubs](https://boosterclub.org/fundraising/grants/): where grants come from and what funders require
- [Recruiting and Managing Booster Club Volunteers](https://boosterclub.org/fundraising/volunteers/): asks, shifts, background checks, and recognition
- [Fundraising Ethics for Booster Clubs](https://boosterclub.org/fundraising/fundraising-ethics/): restricted gifts, honest asks, and transparency
- [Title IX and Booster Club Fundraising](https://boosterclub.org/fundraising/title-ix/): how booster money counts toward athletic equity

## Common Mistakes

- **Individual student accounts.** The most common and most costly error; it can end the club's exemption.
- **Adding fundraisers mid-year.** Each unplanned ask lowers the return on the planned ones.
- **Fundraising before district approval.** The club can lose facility access or recognition.
- **Missing acknowledgments.** Donors lose deductions, and the club loses donors.

## Checklist

- [ ] Read [Fundraising Rules for Booster Clubs](https://boosterclub.org/fundraising/rules/) before planning the year (president and fundraising chair)
- [ ] Confirm the club keeps no individual accounts or per-student credits
- [ ] Obtain the district's booster policy and approval forms
- [ ] Adopt the budget and fundraising calendar together (board)
- [ ] Set the number of family asks for the year
- [ ] Confirm sales tax, raffle, and charitable registration rules for the club's state
- [ ] Set up acknowledgment procedures for gifts of $250 or more and disclosures over $75 (treasurer)
- [ ] Share planned athletic spending by team with the athletic director
- [ ] Review results after each fundraiser and before next year's calendar

## Related Pages

- [Booster Club Fundraising Ideas](https://boosterclub.org/fundraising-ideas/) for specific fundraisers
- [Private Benefit, Inurement, and Individual Fundraising Accounts](https://boosterclub.org/taxes/private-benefit/) for the tax analysis
- [How to Build a Booster Club Budget](https://boosterclub.org/finance/budget/) for setting revenue targets
- [Booster Club Raffles](https://boosterclub.org/raffles/) for state gaming law
- [Marketing a Booster Club](https://boosterclub.org/marketing/) for reaching families and the community

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*This page is general information for volunteer-run booster clubs. It is not legal,
tax, or accounting advice, and BoosterClub.org is not a law firm, accounting firm, or
government agency. Rules change and vary by state and district. Confirm current
requirements with the IRS, the relevant state agency, the school district, and a
qualified professional before acting. If a fact on this page is out of date, we want
to know.*

## Sources

1. IRS: https://www.irs.gov/charities-non-profits/charitable-organizations/inurement-private-benefit-charitable-organizations
2. IRS: https://www.irs.gov/pub/irs-tege/eotopica93.pdf
3. IRS: https://www.irs.gov/pub/irs-pdf/p1771.pdf