Arkansas Booster Club Filing Requirements

Forming a Nonprofit Corporation in Arkansas

The Secretary of State’s Business and Commercial Services division files nonprofit corporations.

1. Check name availability in the Secretary of State’s database.
2. File the Articles of Incorporation, using the 501(c)(3) version (NPD-01-501-c-3), which includes the purpose and dissolution language the IRS requires.
3. Name a registered agent (the person who accepts legal papers for the club) with a physical Arkansas address.
4. Pay $45 online or $50 on paper.

Annual report

Act 569 of 2007 requires every 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 to file an annual report with the Secretary of State by August 1, with no fee. It lists 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, principal office, officers, and a board of at least three directors. Filing after spring elections puts the new officers on the state record.

State Tax Exemption

Arkansas exemption is not automatic. Arkansas Code 26-51-303 exempts qualifying organizations, but DFA’s Corporation Income Tax Section must receive documentation to recognize the exemption. DFA’s instructions list two paths:

• With an IRS determination letter: a copy of the IRS ruling letter, a copy of pages 1 and 2 of IRS Form 1023 or 1024, and a statement declaring the Arkansas Code exemption. A club that applied on Form 1023-EZ confirms with DFA what to send in place of Form 1023 pages.
• Without an IRS letter: Arkansas Form AR1023CT, Application for Income Tax Exempt Status, with the articles of incorporationArticles of incorporationThe document the founders file with the state agency that registers corporations to create a nonprofit corporation. It carries the IRS-required purpose and dissolution clauses; some states call it a certificate of incorporation or certificate of formation.All terms and bylaws.

No fee is stated. A club with taxable income, such as unrelated business income (income from a regular business unrelated to its purpose), reports it on Form AR1100CT, due the 15th day of the 5th month after year end. DFA states that income tax exemption does not carry over to sales tax.

Sales Tax

Purchases

Arkansas exempts purchases only by entities named in the law, such as the Salvation Army. A booster club is not named and pays sales tax on supplies and equipment.

Fundraiser sales

Two exemptions in Arkansas Code 26-52-401 can cover booster club sales:

• Paragraph (42)(A) exempts sales of tangible personal property, digital products, or services by a parent-teacher group “or similar organization affiliated with a public school.”
• Paragraph (40) exempts sales at concession stands operated by a nonprofit youth organization.

Whether a booster club counts as a “similar organization affiliated with a public school” is a question for DFA’s Sales and Use Tax Section; a club attached to a private school is outside paragraph (42).

Charitable Solicitation Registration

Arkansas requires charitable organizations to register with the Secretary of State before soliciting contributions (Arkansas Code 4-28-401 through 416). Registration is free; filings go by email to charities@sos.arkansas.gov.

• Initial registration: Form CR-01, the IRS exemption letter, the articles of incorporationArticles of incorporationThe document the founders file with the state agency that registers corporations to create a nonprofit corporation. It carries the IRS-required purpose and dissolution clauses; some states call it a certificate of incorporation or certificate of formation.All terms, Form CR-02 consent for service if applicable, and Form CR-03 financial report.
• Annual financial report: Form CR-03, with the club’s Form 990, 990-EZ, or 990-N, due August 1. A CPA audit is required if gross revenue exceeded $500,000 in any 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.
• Exemptions: a charity that does not receive more than $25,000 in contributions in a calendar year is exempt if all its functions, including fundraising, are carried on by unpaid people and no income benefits any officer or member. Accredited educational institutions are also exempt.
• Claiming an exemption: the club submits Form EX-01 with its IRS letter and articles.

Online giving pages count as solicitation.

Raffles and Gaming

Raffles are legal in Arkansas only for licensed authorized organizations under the Charitable Bingo and Raffles Enabling Act, administered by DFA’s Miscellaneous Tax Section.

• Eligibility. A nonprofit tax-exempt educational, civic, service, or similar organization that has existed in Arkansas for at least five years immediately before the raffle. The application asks for an IRS letter reflecting five years of nonprofit status.
• License fees. $100 for an annual bingo and raffle license; $25 for a Class I temporary license for one raffle; $10 for a Class II temporary license for one raffle whose prizes are all donated and worth less than $5,000.
• Prize limits. A cash prize may not exceed $5,000. Purchased raffle prizes may not exceed $50,000 in wholesale value per calendar year, and donated prizes $100,000.
• Operations. Only unpaid officers and members (including auxiliary members) run the raffle. Proceeds go through a separate in-state checking account printed with the license number and “Bingo and Raffle Account.” Records are kept at least two years.
• Online and 50/50. No raffle ticket may be sold by mail, internet, email, fax, telephone, or any other remote or electronic means, and no electronic devices may be used. A 50/50 drawing is a raffle and needs a license.
• Annual report. Due June 1, covering May 1 through April 30.

Act 305 of 2025 created a separate Sports Raffle Act for colleges and their affiliated nonprofits, not K-12 booster clubs.

Annual Compliance Calendar for Arkansas