# Starting a Booster Club: The Seven Steps and Timeline

> How to start a booster club in seven steps: school approval, bylaws, incorporation, EIN, bank account, 501(c)(3) status, and state filings, with a timeline.

- URL: https://boosterclub.org/start/
- Section: Start
- Updated: 2026-10-08

Starting a booster club takes seven steps: confirm the need and get school approval, recruit a founding board and write bylaws, incorporate with the state, get an Employer Identification Number (EIN), open a bank account, apply for 501(c)(3) status, and register with the state. The founding president usually drives the process. The treasurer takes over the financial steps once the bank account is open.

The order protects the volunteers personally. Money collected before the club legally exists, or deposited in a parent's personal account, exposes the people handling it to tax and liability problems and puts donors' deductions at risk.

## What a Booster Club Is

A booster club is a parent-run nonprofit organization that raises money and volunteers for a specific school program: a band, a team, a theater department, a robotics club. It is legally separate from the school and the district. The Texas Comptroller states the rule plainly: "Booster clubs are not covered by a school's exempt status." California's student body accounting manual, published by the Fiscal Crisis and Management Assistance Team (FCMAT), likewise treats booster clubs as separate legal entities whose money belongs in their own bank account.

So the club needs its own legal identity, tax identification number, bank account, and federal tax exemption, usually as a 501(c)(3) public charity. Section 501(c)(3) of the Internal Revenue Code exempts charitable and educational organizations from federal income tax and lets donors who itemize deduct their gifts.

## The Seven Steps

| Step | What happens | Owner | Planning estimate | Guide |
|---|---|---|---|---|
| 1. Confirm the need and get approval | Meet with the principal and program director, check for an existing club, choose a name | Founding parents | 2 to 6 weeks | [Before starting](https://boosterclub.org/start/before-you-start/) |
| 2. Recruit a board and draft bylaws | At least a president, secretary, and treasurer; draft bylaws and articles | Founding parents | 2 to 4 weeks | [Bylaws](https://boosterclub.org/bylaws/) |
| 3. Incorporate | File articles of incorporation with the state | Incorporator | Varies by state | [Incorporate](https://boosterclub.org/start/incorporate/) |
| 4. Get an EIN | Apply online with the IRS, free | President | Same day online | [EIN](https://boosterclub.org/start/ein/) |
| 5. Open a bank account | Two unrelated signers, dual control | President and treasurer | 1 to 2 weeks | [Bank account](https://boosterclub.org/start/bank-account/) |
| 6. Apply for 501(c)(3) status | Form 1023-EZ ($275) or Form 1023 ($600) | President and treasurer | See IRS times below | [501(c)(3)](https://boosterclub.org/start/501c3/) |
| 7. Register with the state | State tax exemption, charitable registration, sales tax | Treasurer | Varies by state | [State registration](https://boosterclub.org/start/state-registration/) |

The planning estimates are typical ranges for volunteer groups, not official figures. The fees are the IRS user fees in effect at the time of writing.

Two rules drive the order: the IRS says not to apply for an EIN until the organization is legally formed, and the articles must contain IRS purpose and dissolution language before the 501(c)(3) application.

## A Realistic Timeline

As a planning estimate, a club that qualifies for Form 1023-EZ can move from its first meeting to an IRS determination letter in roughly three to four months, depending mostly on how fast the state processes the articles. A club filing the full Form 1023 should plan on nine months or more.

At the time of writing, the IRS reported issuing 80 percent of Form 1023-EZ determinations within 22 days and 80 percent of Form 1023 determinations within 191 days. The IRS updates these figures on its "Where's My Application" page.

The club can operate while the application is pending. Under IRS Publication 557, an application filed within 27 months after the end of the formation month generally makes exemption effective from the formation date, covering donations received in the meantime.

## Rules That Apply From the First Dollar

Three rules apply from day one:

1. **No personal accounts.** Money never passes through a parent's personal bank account or personal payment app.
2. **Two people handle cash.** Two unrelated volunteers count and sign for every cash collection.
3. **No individual student accounts.** IRS Publication 526 says a gift earmarked for a specific person is not deductible, and per-student credits endanger the club's exemption. See [Private Benefit](https://boosterclub.org/taxes/private-benefit/).

## Pages in This Section

- [Before Starting a Booster Club](https://boosterclub.org/start/before-you-start/): the need, school approval, existing groups, naming, and booster club vs PTO vs foundation
- [How to Incorporate a Booster Club](https://boosterclub.org/start/incorporate/): nonprofit corporation, articles, required IRS language, registered agent
- [How to Get an EIN for a Booster Club](https://boosterclub.org/start/ein/): who applies, what to have ready, the online application
- [How to Get 501(c)(3) Status for a Booster Club](https://boosterclub.org/start/501c3/): Form 1023-EZ vs Form 1023, eligibility, fees, timeline, the determination letter
- [State Registration for a New Booster Club](https://boosterclub.org/start/state-registration/): state tax exemption, charitable registration, sales tax
- [Opening a Booster Club Bank Account](https://boosterclub.org/start/bank-account/): what the bank asks for, signers, dual control from day one
- [Booster Club First-Year Checklist](https://boosterclub.org/start/first-year-checklist/): month by month through the first year
- [Alternatives to Forming a Booster Club](https://boosterclub.org/start/fiscal-sponsorship-and-alternatives/): school activity accounts, fiscal sponsors, group exemptions

## Common Mistakes

- **Collecting money before the club exists.** The first fundraiser's money lands in a personal account, and the volunteer holding it now has a tax and trust problem.
- **Using the school's tax ID.** The school's or district's EIN and exemption do not cover the booster club. Using them misrepresents the club to donors, banks, and the IRS.
- **One person doing everything.** A founder who is president, treasurer, and sole signer has no one checking the work, the classic setup for an undetected loss.
- **Skipping the state steps.** Federal 501(c)(3) status does not satisfy state requirements, and missed state filings can suspend the corporation.
- **Waiting years to apply.** After 27 months, the streamlined application can no longer date exemption back to formation.

## Checklist

- [ ] Meet with the principal and program director to confirm support (founders)
- [ ] Confirm no active or dormant booster club already serves the program
- [ ] Recruit at least a president, secretary, and treasurer
- [ ] Draft bylaws and articles of incorporation with the required IRS clauses
- [ ] File articles of incorporation with the state and save the filed copy
- [ ] Hold the organizational meeting to adopt bylaws and elect officers
- [ ] Apply for the EIN online after the state approves the articles (president)
- [ ] Open a bank account with two unrelated signers (president and treasurer)
- [ ] File Form 1023-EZ or Form 1023 (within 27 months of formation)
- [ ] Complete the state tax exemption, charitable registration, and sales tax steps that apply
- [ ] Calendar the first Form 990-N due date (15th day of the 5th month after fiscal year end)

## Related Pages

- [Booster Club First-Year Checklist](https://boosterclub.org/start/first-year-checklist/) for the month-by-month version of these steps
- [Booster Club Bylaws](https://boosterclub.org/bylaws/) for what the founding board adopts at its first meeting
- [Internal Controls for Booster Clubs](https://boosterclub.org/finance/internal-controls/) for the money rules that apply from day one
- [Booster Club Filing Requirements by State](https://boosterclub.org/states/) for state-specific steps
- [Booster Club Compliance Calendar](https://boosterclub.org/taxes/compliance-calendar/) for recurring deadlines after formation

---

*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. Texas Comptroller: https://comptroller.texas.gov/taxes/exempt/booster.php
2. IRS: https://www.irs.gov/publications/p557
3. IRS: https://www.irs.gov/charities-non-profits/before-applying-for-tax-exempt-status
4. IRS: https://www.irs.gov/businesses/small-businesses-self-employed/get-an-employer-identification-number
5. IRS: https://www.irs.gov/charities-non-profits/form-1023-and-1023-ez-amount-of-user-fee
6. IRS: https://www.irs.gov/charities-non-profits/charitable-organizations/wheres-my-application
7. IRS: https://www.irs.gov/publications/p526
8. Fiscal Crisis and Management Assistance Team (California): https://www.fcmat.org/publicationsreports/fcmat-K-12-asb-manual.pdf