# Online Fundraising for Booster Clubs: Platforms, Fees, and Rules

> How a booster club raises money online: types of platforms, published fee ranges, account setup, student pages, state charitable registration, and Form 1099-K.

- URL: https://boosterclub.org/fundraising/online-fundraising/
- Section: Fundraising
- Updated: 2026-10-08

Online fundraising lets a booster club accept donations, sell tickets and merchandise, and run time-limited campaigns through a website or a fundraising platform, without handling cash. It also brings fees, account-control risks, and state registration questions that paper fundraising does not. The board approves each platform, the treasurer controls the accounts and reconciles every payout, and the fundraising chair runs the campaigns.

## Types of Online Fundraising

| Type | What it is | What to watch |
|---|---|---|
| Donation form | An always-on "Give" button on the club website | Acknowledgments; recurring gift records |
| Online store or ticketing | Tickets, spirit wear, concessions preorders | Purchases are not gifts; sales tax; disclosures over $75 |
| Crowdfunding campaign | A time-limited public appeal with a goal and progress bar | Shared beyond the community; state registration |
| Peer-to-peer pages | Supporters create personal pages that feed one club campaign | Must not become individual student accounts |
| Giving day | A one-day community or school-wide campaign | Coordinate with other school groups |
| Online raffle | Tickets sold online for a prize drawing | Restricted or illegal in many states; see [Online Raffles](https://boosterclub.org/raffles/online-raffles/) |

## What It Costs: Platform and Processing Fees

Online giving carries two layers of cost:

- **The platform fee** is what the fundraising service charges for its software.
- **The processing fee** is what it costs to run the card or bank transaction.

Published pricing reviewed for this page in October 2026 (vendors are not named here, and BoosterClub.org recommends none):

| Fee | Published range |
|---|---|
| Platform fee | 0% at several services that ask donors for an optional tip to the platform; 3% at one service when the tip option is turned off |
| Card processing | 2.9% + $0.30 per transaction at two of the services reviewed |
| Card processing, charity rate | One large payment service publishes 1.99% + $0.49 for confirmed 501(c)(3) charities, against 3.49% + $0.49 standard |
| Bank transfer (ACH) | 1.9% + $0.30 at one service |

What that means on a single gift:

| Gift | At 2.9% + $0.30 | At 1.99% + $0.49 | At 3.49% + $0.49 |
|---|---|---|---|
| $25 | Club nets $23.97 | Club nets $24.01 | Club nets $23.64 |
| $50 | Club nets $48.25 | Club nets $48.51 | Club nets $47.76 |
| $100 | Club nets $96.80 | Club nets $97.52 | Club nets $96.02 |

The fixed per-transaction charge weighs most on small gifts. A platform fee stacks on top: at 3% plus 2.9% + $0.30, a $50 gift nets $46.75.

"Free" platforms funded by tips deserve a close look. The tip goes to the platform, not the club. Before choosing one, a board member should make a test gift and see exactly what a donor sees at checkout, including any default tip amount. Some services also let donors cover the fees so the club receives the full gift.

Rates change. The treasurer confirms current pricing, payout timing, refund and chargeback handling, and who owns the donor list before the board approves a platform.

> Fundraising software built for small nonprofits can issue receipts, track restricted gifts, and export to the books automatically.

## Setting Up Accounts Correctly

1. Open every account in the club's legal name with the club's EIN (employer identification number).
2. Direct payouts only to the club's bank account.
3. Give at least two officers administrator access, using a club email address rather than a personal one, and record the logins in the club's records.
4. Never run club money through a personal crowdfunding page or a personal payment app. The money is commingled with personal funds, the records belong to an individual, and tax forms are issued in that individual's name.
5. Turn on automatic receipts only after checking that their wording meets the acknowledgment rules, or send the club's own.
6. Reconcile each payout monthly: gross amount, fees, refunds, and net deposit.
7. Remove administrator access for departing officers at transition.

See [Booster Club Banking](https://boosterclub.org/finance/banking/) and [Accepting Online Payments as a Booster Club](https://boosterclub.org/finance/payment-processing/).

## Peer-to-Peer and Student Pages

Peer-to-peer fundraising (supporters creating their own pages that feed a club campaign) works well for booster clubs, with one firm limit. Every dollar goes to the club's campaign for the program as a whole. A page may show a student's photo and a progress bar, and the club may thank top fundraisers, but no amount raised on a page is credited to that student's fees, trip, or account. A page titled "Help Maya get to nationals" for a club-run trip is an individual account in online form. See [Fundraising Rules for Booster Clubs](https://boosterclub.org/fundraising/rules/).

A family's personal crowdfunding page for its own child's costs is a private matter, not a club fundraiser. Gifts to it are not deductible as charitable contributions (IRS [Publication 526](https://www.irs.gov/publications/p526)), and the club should not let it use the club's name or logo or promote it as club fundraising.

Student privacy rules apply online. Use only photos and names the district's media release allows, and never publish a student's contact information.

## State Charitable Registration

About 40 states require charities to register before soliciting donations from their residents. Exemptions and revenue thresholds vary by state, and many small booster clubs fall under an exemption in their home state. The club's own state comes first; see the [state pages](https://boosterclub.org/states/#charitable-registration) and [State Registration for a New Booster Club](https://boosterclub.org/start/state-registration/).

Online campaigns raise the question of other states. The Charleston Principles, advisory guidelines issued by the National Association of State Charity Officials in 2001, are the framework most states follow. Connecticut, for example, says it has not adopted them by statute but abides by them ([Connecticut Department of Consumer Protection](https://portal.ct.gov/dcp/knowledge-base/articles/charities/faqs/online-solicitations-for-in-state-vs-out-of-state)). In summary:

- A charity registers in its home state if it solicits there, online or not.
- A charity registers in another state if it specifically targets donors in that state, or receives contributions from that state on a repeated and ongoing or substantial basis through its website.
- A charity also registers where its offline activities alone would require it.
- A website with a donate button, by itself, generally does not trigger registration in other states.

Crowdfunding and giving days can trigger registration requirements in multiple states, because supporters forward links to relatives elsewhere. A club that emails an appeal to an out-of-state alumni list, or runs paid social media ads in other states, should check the rules in those states first.

## Form 1099-K and Payment Records

Third party settlement organizations, which include many payment apps and online marketplaces, file Form 1099-K only when payments to a payee exceed $20,000 and the number of transactions exceeds 200. The One, Big, Beautiful Bill retroactively restored that threshold ([IRS news release IR-2025-107, October 23, 2025](https://www.irs.gov/newsroom/irs-issues-faqs-on-form-1099-k-threshold-under-the-one-big-beautiful-bill-dollar-limit-reverts-to-20000)).

A Form 1099-K does not create tax for a 501(c)(3) club, but the treasurer should be able to tie its total to the books. When club money runs through a parent's personal account, the form goes to that parent, which is one more reason the club never does it.

## Acknowledgments and Disclosures

Online receipts must meet the same rules as paper ones. IRS [Publication 1771](https://www.irs.gov/pub/irs-pdf/p1771.pdf) allows acknowledgments by email. Gifts of $250 or more need a written acknowledgment, and online ticket or auction purchases over $75 that include a gift need a disclosure of the deductible amount. See [Donation Receipts and Acknowledgment Letters](https://boosterclub.org/taxes/donor-acknowledgments/).

## Common Mistakes

- **A parent runs the campaign on a personal page.** It feels faster, but the club loses control of the money, the donor records, and the tax reporting.
- **Choosing a platform by its headline rate.** Tip defaults, payout delays, and per-transaction charges change the real cost.
- **Student pages that credit the student.** It recreates the individual account problem that cost clubs their exemption.
- **Emailing out-of-state lists without checking registration.** State regulators can assess penalties for unregistered solicitation.
- **Running an online raffle.** Many states prohibit or tightly restrict online raffle sales.

## Checklist

- [ ] List the online tools the club will use this year and have the board approve each one
- [ ] Open each account in the club's name and EIN with payouts to the club bank account (treasurer)
- [ ] Give two officers administrator access using club email addresses
- [ ] Make a test gift to see the donor checkout, fees, and tip settings
- [ ] Confirm the club's state charitable registration status, and check other states before targeting donors there
- [ ] Set peer-to-peer pages so all gifts go to the club campaign with no individual credit
- [ ] Confirm photo and name use against the district's media release
- [ ] Review automatic receipt wording against acknowledgment rules
- [ ] Reconcile every payout monthly (treasurer)
- [ ] Remove departing officers' access at transition (president)

## Related Pages

- [Accepting Online Payments as a Booster Club](https://boosterclub.org/finance/payment-processing/) for processing, settlement, and reconciliation
- [Online and Electronic Raffles](https://boosterclub.org/raffles/online-raffles/) for why online raffles are restricted
- [State Registration for a New Booster Club](https://boosterclub.org/start/state-registration/) for charitable registration
- [Social Media for Booster Clubs](https://boosterclub.org/marketing/social-media/) for promoting campaigns and student privacy
- [Accepting Donations as a Booster Club](https://boosterclub.org/fundraising/donations/) for gift types and acknowledgments

---

*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. State of Connecticut: https://portal.ct.gov/dcp/knowledge-base/articles/charities/faqs/online-solicitations-for-in-state-vs-out-of-state
2. IRS: https://www.irs.gov/newsroom/irs-issues-faqs-on-form-1099-k-threshold-under-the-one-big-beautiful-bill-dollar-limit-reverts-to-20000
3. IRS: https://www.irs.gov/pub/irs-pdf/p1771.pdf
4. IRS: https://www.irs.gov/publications/p526