Fundraising
Booster Club Fundraising: Rules, Planning, and Practice
Updated Oct 6, 20263 sources
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.
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 (external site)).
| 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 (external site)), and clubs have lost their exemption over it. Fundraising Rules for Booster Clubs 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 (external site)).
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.
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 rulesThe federal, state, and district rules that govern booster club fundraising: private benefit, individual accounts, mandatory fees, joint events, and Title IX.
- Planning calendarHow to build a booster club fundraising calendar: a fall, winter, and spring structure, a cap on asks per family, spacing between asks, and a sample year.
- District policiesWhat school district policies require of booster clubs and what a booster club MOU contains: approval, facility use, the school's name and logo, and ASB money.
- Corporate sponsorshipsHow a booster club builds sponsorship packages, pitches local businesses, words acknowledgments so they are not taxable advertising, and writes the agreement.
- Accepting donationsHow a booster club accepts cash, online, in-kind, and stock donations and employer matching gifts, with the receipt rules and a gift acceptance policy.
- Online fundraisingHow a booster club raises money online: types of platforms, published fee ranges, account setup, student pages, state charitable registration, and Form 1099-K.
- Fundraising eventsHow to run a booster club fundraising event: budget and break-even, district approval, permits, insurance, ticket disclosures, cash control, and the report.
- Product salesHow a booster club runs a product fundraiser: real margins, the vendor contract, sales tax, the volunteer exception, seller prizes, and inventory control.
- GrantsWhere booster club grants come from, what funders require (starting with the 501(c)(3) letter), how to write the application, and how to manage the award.
- VolunteersHow a booster club recruits volunteers with specific asks, schedules shifts, follows district background check rules, limits liability, and thanks volunteers.
- Fundraising ethicsHow a booster club keeps donor trust: honoring restricted gifts, spending what was promised, honest asks, open financial reporting, and no pressure on families.
- Title IXWhy booster club spending counts toward a school's Title IX athletics obligations, what districts review and ask clubs to disclose, and how clubs stay in step.
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.
Booster Club Fundraising: Rules, Planning, and Practice
https://boosterclub.org/fundraising/
Checklist
- President and fundraising chair
- Board
- Treasurer
Related pages
- Booster Club Fundraising Ideas · Fundraising IdeasSpecific fundraisers
- Private Benefit, Inurement, and Individual Fundraising Accounts · TaxesThe tax analysis
- How to Build a Booster Club Budget · FinanceSetting revenue targets
- Booster Club Raffles · RafflesState gaming law
- Marketing a Booster Club · MarketingReaching families and the community
Sources
- IRS (external site)irs.gov/charities-non-profits/charitable-organizations/inurement-private-benefit-charitable-organizations
- IRS (external site)irs.gov/pub/irs-tege/eotopica93.pdf
- IRS (external site)irs.gov/pub/irs-pdf/p1771.pdf
Updated October 6, 2026
Disclaimer: 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.