Running a Booster Club Fundraising Event, Start to Finish

Decide Whether the Event Is Worth Running

Before committing, the board answers four questions:

1. What is the net goal? Gross revenue is not the measure; net after every cost is.
2. Who will attend? An event that draws grandparents, alumni, and local businesses brings in new money. An event that sells tickets only to the club’s own families counts as one of the year’s family asks.
3. How many volunteer hours will it take? Divide the expected net by the total hours. A low return per hour is a reason to choose something simpler.
4. Does it fit the calendar? Check the school’s master calendar and other groups’ events.

Planning Timeline

The district’s approval process may set its own lead time. Tennessee, for example, requires a school support organization to get the director of schools’ approval before scheduling any fundraiser (Tennessee Comptroller (external site)). See School District Fundraising Policies and MOUs.

The Event Budget

The board approves an event budget before any money is spent.

Break-even example. A dinner has $2,000 in fixed costs (venue, rentals, insurance, printing). Each ticket sells for $40 and food costs $15 per guest, so each ticket contributes $25 toward fixed costs. The event breaks even at 80 tickets ($2,000 divided by $25). At 150 tickets, it nets $1,750 (150 times $25, minus $2,000). If the chair cannot see a realistic path well past break-even, the event needs a smaller cost base or a different format.

Approvals and Permits

Requirements vary by state, county, city, and district. The categories to check are school district policies on grounds, equipment, and food service; local solicitation permits; and municipal rules on public gatherings, fire safety, traffic, food sales, and health and safety.

Sales tax rules differ sharply by state. Texas, for example, allows qualifying exempt organizations two one-day tax-free sales or auctions each calendar year, and treats certain food sold by booster clubs and other school support organizations as nontaxable when all net proceeds go to the organization, under conditions set out in Texas Comptroller Publication 96-122 (external site). Other states tax the same sales.

Insurance

The club’s general liability policy should cover its events; the chair confirms that before signing a venue contract. Districts and venues often require a certificate of insurance and sometimes ask to be named as an additional insured. Vendors that serve food, run inflatables, or provide equipment should supply their own certificates. Serving alcohol usually requires liquor liability coverage. See Booster Club Insurance.

Tickets, Auctions, and the $75 Disclosure

When a guest pays more than $75 for something that is partly a gift and partly a purchase, the club must give a written disclosure stating the deductible amount and a good faith estimate of the value received. IRS Publication 1771 (external site) uses this example: a donor pays $100 for a concert ticket worth $40, so no more than $60 is deductible, and the club must disclose that. The penalty for failing to disclose is $10 per contribution, up to $5,000 per event.

Practical rules:

1. Print the disclosure on tickets and the ticket order page: “The estimated value of the meal and entertainment is $40 per person. The amount paid above $40 may be deductible as a charitable contribution.”
2. Give each auction buyer a receipt showing the price paid and the club’s good faith estimate of the item’s value. Only the amount paid above that value can be a contribution.
3. Raffle tickets are never deductible, whatever the price (IRS Publication 526).

Volunteers and Cash

Every event needs a shift chart with named people, start and end times, and a lead for each area: setup, check-in, cash, food, auction, and cleanup. See Recruiting and Managing Booster Club Volunteers.

Cash follows the club’s written procedures: two unrelated people at every cash point, a starting fund recorded in advance, a count sheet signed by both counters, and a deposit by the next business day. See Handling Cash at Booster Club Events.

The Post-Event Report

Within 30 days, the chair presents a written report to the board:

• Gross revenue by line, matched to deposits
• Expenses by line, matched to receipts
• Net result against the goal and the budget
• Attendance and tickets sold
• Volunteer hours and net per volunteer hour
• Sponsors and donors to thank
• What to keep, change, or drop next year

The secretary files the report with the minutes; it becomes the next chair’s starting point.