Alabama Booster Club Filing Requirements

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 CorporationNonprofit 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 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 agentRegistered agentThe person or company designated to receive lawsuits and official state notices for the corporation at a street address in the state. Some states call it a resident agent or statutory agent.All terms’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 NumberEINEmployer Identification Number: the nine-digit federal tax identification number the IRS assigns to the club. The club needs it to open a bank account, apply for 501(c)(3) status, and file its annual return.All terms, 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 yearFiscal yearThe club’s 12-month accounting year, set in the bylaws. Many booster clubs use July 1 through June 30 to match the school year, and the club’s filing deadlines count from the day it ends.All terms 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 EINEINEmployer Identification Number: the nine-digit federal tax identification number the IRS assigns to the club. The club needs it to open a bank account, apply for 501(c)(3) status, and file its annual return.All terms, 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