# Alabama Booster Club Filing Requirements

> Alabama booster club filing rules: $200 nonprofit incorporation, the school sales tax exemption, Attorney General registration over $25,000, and the raffle ban.

- URL: https://boosterclub.org/states/alabama/
- Section: States
- Updated: 2026-10-08

Alabama is light on booster club paperwork and strict on gaming. An Alabama nonprofit corporation files no annual report, a 501(c)(3) (a nonprofit the IRS recognizes as tax-exempt under Section 501(c)(3) of the Internal Revenue Code) owes no state income or business privilege tax, and booster clubs are a listed sales tax exempt entity. Raffles, however, are illegal lotteries under the Alabama Constitution. The president and treasurer share these filings.

## At a Glance

| Requirement | Agency | Form | Fee | Frequency |
|---|---|---|---|---|
| Incorporate as nonprofit | Secretary of State | Nonprofit Certificate of Incorporation, plus name reservation | $200; reservation $10 to $28 | once |
| Annual/biennial report | Secretary of State | None for nonprofit corporations | $0 | none |
| State income/franchise tax exemption | Department of Revenue | None; follows federal status (Form 20C only if unrelated business income) | $0 | automatic |
| Sales tax exemption on purchases | Department of Revenue | Form ST:EX-A1-SE (Certificate of Exemption) | No fee stated | once; confirm renewal on certificate |
| Sales tax on fundraiser sales | Department of Revenue | None; exempt when proceeds benefit the school | $0 | ongoing |
| Charitable solicitation registration | Attorney General, Consumer Protection | Charitable Organization Registration Statement, or Exemption form | $25 | annual, if over $25,000 |
| Raffle permit/registration | None available | Raffles prohibited | n/a | n/a |

## Forming a Nonprofit Corporation in Alabama

Incorporating creates a legal entity separate from the volunteers, which limits their personal liability.

1. Reserve the name with the Secretary of State: $10 by mail (standard) or $28 online, where the reservation issues immediately.
2. Complete the Domestic Nonprofit Corporation Certificate of Incorporation (Section 10A-3A-2.02, Code of Alabama) and attach the name reservation certificate.
3. Name one registered agent (the person who accepts legal papers for the club) with an Alabama street address and county.
4. Include the IRS-required purpose and dissolution language; the state form has a section for it.
5. Mail two typed copies with the $200 fee. The state forwards $100 of it to the registered agent's county.

Alabama nonprofit corporations do not file an annual report. Since January 1, 2024, the Secretary of State accepts annual reports only from for-profit and professional corporations.

## State Tax Exemption

Alabama follows federal status automatically. Organizations described in Section 501(a) of the Internal Revenue Code do not file Alabama corporate income tax returns while they keep their exemption, and Section 40-14A-43 exempts them from the business privilege tax. There is no application and no fee.

The exception is unrelated business income (income from a regular business unrelated to the club's purpose). A club with it files Alabama Form 20C with a copy of federal Form 990-T.

## Sales Tax

Alabama does not exempt nonprofits in general; a nonprofit must be specifically listed in the law. Booster clubs are listed.

**Purchases.** The Department of Revenue lists "parent teacher organizations (e.g., nonprofit booster clubs comprised of parents and teachers)" as statutorily exempt. The club applies for a Certificate of Exemption on Form ST:EX-A1-SE in the My Alabama Taxes portal, uploading the IRS letter assigning its EIN (Employer Identification Number, the federal tax ID), its articles or bylaws, and a letter from the school administrator stating that all funds raised benefit the school exclusively. Vendors charge tax unless the certificate is on file.

**Fundraiser sales.** Under Rule 810-6-2-.88.04, sales by school-affiliated groups "such as parent-teacher organizations and booster clubs" are exempt when the net proceeds are used solely for the benefit of the elementary or secondary school. The exemption covers product campaigns run with a fundraising company where students take orders. Proceeds spent on anything else fall outside the rule. Some cities and counties administer their own sales taxes; the treasurer confirms local treatment before a large event.

## Charitable Solicitation Registration

Alabama requires charities that solicit contributions in or from the state to register with the Attorney General's Consumer Protection Section under Sections 13A-9-70 through 13A-9-84 of the Code of Alabama.

- **Threshold.** A club that does not receive more than $25,000 in contributions in its fiscal year (the 12-month accounting period in the bylaws) is exempt, if all fundraising is done by unpaid people. Paying a solicitor removes the exemption.
- **Crossing it.** A club that passes $25,000 must register within 30 days.
- **Fee.** $25 to register and $25 for each annual filing.
- **Annual filing.** Within 90 days after fiscal year end, with a financial report or IRS Form 990: September 28 for a June 30 year end. A 180-day extension is available.
- **Exemption form.** A notarized Charitable Organization Registration Exemption form exists. The Attorney General does not state that small clubs must file it.
- **Audit.** No audit or CPA review requirement is stated.

## Raffles and Gaming

Raffles are not legal for Alabama booster clubs. Section 65 of the Constitution of Alabama of 2022 bars any lottery, and a raffle (a ticket sold for a chance at a prize) is a lottery. In July 2024 the Attorney General's office sent a cease-and-desist letter to a charity planning a raffle, calling such raffles illegal lotteries.

There is no license or permit, and no exception for 50/50 drawings or online tickets. House Bill 47 (2025) proposed an amendment allowing charitable paper raffles and bingo; it died in committee. Bingo is legal only in counties whose local constitutional amendments allow it. Lawful alternatives are auctions and free-entry drawings with no purchase or donation required.

### School financial procedures

The State Department of Education's Financial Procedures for Local Schools treat a booster organization as separate from the school only if it has its own EIN, mailing address, and books. It becomes a school activity, under public-fund rules, if a school employee holds a leadership role, leads its fundraising, or keeps its records. Collecting gate admission or parking fees, or running concessions at a school function, can place that activity under the principal's control.

## Annual Compliance Calendar for Alabama

| Filing | Due date | Agency |
|---|---|---|
| Federal Form 990-N (or 990-EZ/990) | 15th day of 5th month after fiscal year end (May 15 for a calendar year; November 15 for a June 30 year end) | IRS |
| Charitable organization annual filing (if registered) | 90 days after fiscal year end (September 28 for a June 30 year end) | Attorney General |
| Charitable registration (if contributions pass $25,000) | Within 30 days of crossing $25,000 | Attorney General |
| Form 20C (only with unrelated business income) | With federal Form 990-T | Department of Revenue |
| Annual report | Not required for nonprofit corporations | Secretary of State |

## Common Mistakes in Alabama

- **Running a raffle because other states allow it.** Officers see raffles at out-of-state tournaments. A cease-and-desist letter can force a refund of every ticket sold.
- **Paying sales tax on supplies.** Treasurers do not know booster clubs are a listed exempt entity, so the club overpays on every purchase.
- **Letting a coach keep the books.** It feels efficient, but it can turn the club's money into school money under the principal's control.
- **Missing the $25,000 trigger.** A strong season pushes contributions past $25,000; registration is due within 30 days.

## Checklist

### Forming

- [ ] Reserve the club name with the Secretary of State ($10 mail standard, $28 online)
- [ ] File the Domestic Nonprofit Corporation Certificate of Incorporation with the $200 fee
- [ ] Obtain an EIN from the IRS
- [ ] Apply for 501(c)(3) status with the IRS
- [ ] Get a letter from the principal stating all funds raised benefit the school
- [ ] Apply for a sales tax Certificate of Exemption on Form ST:EX-A1-SE in My Alabama Taxes (treasurer)
- [ ] File the Attorney General registration ($25) or decide on the exemption form, based on expected contributions
- [ ] Confirm no school employee will serve as an officer, lead fundraising, or keep the books

### Every Year

- [ ] Track contributions against the $25,000 threshold (treasurer)
- [ ] File federal Form 990-N, 990-EZ, or 990 (by the 15th day of the 5th month after fiscal year end)
- [ ] File the Attorney General annual report with $25, if registered (within 90 days of fiscal year end)
- [ ] Give vendors a current copy of the sales tax Certificate of Exemption
- [ ] Replace any raffle or 50/50 with an auction or free-entry drawing
- [ ] Update the registered agent with the Secretary of State when officers change

## Related Pages

- [Booster Club Filing Requirements by State](https://boosterclub.org/states/) to compare Alabama with neighboring states
- [Are Booster Club Raffles Legal](https://boosterclub.org/raffles/are-raffles-legal/) for the state-by-state raffle picture
- [Sales Tax for Booster Clubs](https://boosterclub.org/taxes/sales-tax/) for how exemption certificates work with vendors
- [How to File Form 990-N for a Booster Club](https://boosterclub.org/taxes/form-990-n/) for the federal annual filing
- [How to Incorporate a Booster Club](https://boosterclub.org/start/incorporate/) for the articles and IRS-required language

---

*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. Alabama Secretary of State: https://www.sos.alabama.gov/sites/default/files/2023-12/NonProfitIncorporation.pdf
2. Alabama Secretary of State: https://www.sos.alabama.gov/sites/default/files/form-files/domesticEntityNameReservation.pdf
3. Alabama Department of Revenue: https://www.revenue.alabama.gov/notice-important-changes-to-the-2024-business-privilege-tax-filing-requirements/
4. Alabama Tax Tribunal: https://taxtribunal.alabama.gov/wp-content/uploads/2023/05/1541_Final-Order-Rehear.pdf
5. Alabama Department of Revenue: https://www.revenue.alabama.gov/faqs/what-are-the-filing-requirements-for-an-exempt-organization-operating-in-alabama/
6. Alabama Department of Revenue: https://www.revenue.alabama.gov/faqs/are-all-non-profit-entities-exempt-from-sales-and-use-taxes/
7. Alabama Department of Revenue: https://www.revenue.alabama.gov/sales-use/tax-exempt-entities/
8. Alabama Department of Revenue: https://www.revenue.alabama.gov/wp-content/uploads/2025/08/How-to-apply-online-for-an-ST-EX-A1-SE.pdf
9. Alabama Department of Revenue: https://www.revenue.alabama.gov/admin-rules/exemption-for-certain-sales-by-elementary-and-secondary-schools-school-sponsored-clubs-and-organizations-and-school-affiliated-groups/
10. Alabama Department of Revenue: https://www.revenue.alabama.gov/wp-content/uploads/2021/12/810-6-2-.88.04.pdf
11. Alabama Attorney General: https://www.alabamaag.gov/consumer-protection/charitable-organizations/
12. Alabama Attorney General: https://www.alabamaag.gov/wp-content/uploads/2026/05/File-Consumer-AL-Charitable-Organization-Exemption.pdf
13. Alabama Legislature: https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2025RS/HB47-int.pdf
14. Alabama State Department of Education: https://www.alabamaachieves.org/wp-content/uploads/2021/07/Local-School-Financial-Procedures.pdf
15. IRS: https://www.irs.gov/charities-non-profits/annual-electronic-filing-requirement-for-small-exempt-organizations-form-990-n-e-postcard