State Registration for a New Booster Club: What to File

The Five State Filings at a Glance

Each state’s requirements, forms, and fees are on the state pages. The examples above show how different the rules can be.

Periodic Corporate Reports

A nonprofit corporation stays in good standing by filing the state’s periodic report, often called an annual report, biennial report, or statement of information. The report updates the officers, address, and registered agent. California, for example, requires nonprofit corporationsNonprofit corporationA legal entity created by filing articles of incorporation with the state, separate from the parents who run it. It can open a bank account, sign contracts, and apply for 501(c)(3) status.All terms to file Form SI-100 within 90 days of initial registration and every two years after that, with a $20 fee.

Missing these reports is an easy way to lose good standing. Depending on the state, the corporation can be suspended or administratively dissolved, and a suspended corporation can lose rights and protections under state law. The secretary calendars the report and updates it every time officers change.

State Income or Franchise Tax Exemption

Some states exempt 501(c)(3) organizations automatically. Others require a separate application. Two examples:

• California. The Franchise Tax Board states that an organization must apply to get California tax-exempt status. An organization with a federal determination letterDetermination letterThe IRS letter recognizing the club’s federal tax exemption under 501(c)(3). The club keeps it permanently and shows it to banks, donors, grantors, and the school district.All terms files Form 3500A, Submission of Exemption Request, with a copy of the letter. California also requires its own annual returns, separate from the IRS filing. If the IRS later revokes federal exemption, an organization that obtained California exemption through Form 3500A must notify the Franchise Tax Board.
• Texas. The Comptroller states that booster clubs are not covered by a school’s exempt status but can apply for exemption. A booster club with a 501(c) federal exemption completes Form AP-204, Texas Application for Exemption, and submits it with a copy of its IRS exemption letter. A booster club with a 501(c)(3) or (4) federal exemption is exempt from Texas sales and franchise tax once approved.

Because most of these applications require the IRS determination letter, they come after the 501(c)(3) step. See How to Get 501(c)(3) Status.

Sales Tax

Sales tax touches a booster club in two directions, and the rules differ by state.

Tax on purchases. Exemption on purchases is not automatic, and not every state offers it to nonprofits. Where it exists, the club gives the seller an exemption certificate. In Texas, an approved club receives a link to print the exemption certificateSales tax exemption certificateA state form a qualifying organization gives a seller to buy without paying sales tax. Many states do not exempt nonprofit purchases, so whether a club can use one varies by state.All terms (Form 01-339) to give to vendors. If a seller refuses the certificate, the Comptroller allows the club to request a refund of the tax directly.

Tax on sales. When the club sells goods (spirit wear, concessions, fundraiser products), the sale may be taxable. Many states have special rules for nonprofit or school fundraisers. Texas allows an exempt booster club to hold two one-day tax-free sales or auctions each calendar year, but the Comptroller notes these tax-free days cannot be used for items sold on behalf of a for-profit retailer (such as catalog candy or gift wrap), because the booster club is not considered the seller.

A club that sells regularly may need a state sales tax permit even if most of its sales are exempt. See Sales Tax for Booster Clubs.

Charitable Solicitation Registration

Many states require charities to register with a state office before asking the public for donations, and to renew each year with a financial report. Thresholds, exemptions for small organizations, and fees vary by state. Some states exempt certain school-related or small organizations; others do not.

California’s rule shows why timing matters. Every charitable corporation, unincorporated association, or other entity holding property for charitable purposes in California must register with the Attorney General’s Registry of Charities and Fundraisers within 30 days of first receiving charitable assets. Assets include public donations, property, government grants, and noncash donations. The initial registration uses Form CT-1, requires uploading the founding documents and the IRS exemption application if one was submitted, and carries a $50 fee.

A booster club that accepts donations online from families in other states should check whether that activity creates registration obligations elsewhere. See Online Fundraising for Booster Clubs.

Raffles and Gaming

Raffles, 50/50 drawings, bingo, and casino nights are regulated as gambling in many states. Legality, eligibility, permits, and reporting are set by each state and sometimes by the city or county, and some states limit which organizations may hold a raffle. A new club checks before printing tickets. See Booster Club Raffles and Are Booster Club Raffles Legal.

Local Requirements

Cities and counties may require a business license, a temporary event permit, or a health department food permit for concession stands. The district may also have its own facility use and food sale rules. The treasurer asks the district and the local government which apply before the first event.

Order of Operations

Finding the State’s Rules

For each state, the treasurer checks four agencies:

1. Secretary of State (or equivalent): corporate formation and periodic reports.
2. Department of Revenue, Taxation, or Comptroller: income or franchise tax exemption and sales tax.
3. Attorney General or Secretary of State charities office: charitable solicitation registration.
4. Gaming or lottery regulator (or the Attorney General): raffles and gaming.

The state pages list the agency, form, fee, and due date for each. Examples: California and Texas.