Connecticut Booster Club Filing Requirements

Forming a Nonprofit Corporation in Connecticut

Connecticut calls a nonprofit corporation a “nonstock corporation.” Filing is online through Business.CT.gov.

1. File the Certificate of Incorporation (Nonstock Corporation), $50, with the IRS-required purpose and dissolution language.
2. Name a registered agent (the person who accepts legal papers for the club) with a Connecticut address.
3. File the Organization and First Report, $50, listing officers and directors.

Annual report

A nonstock corporation files an annual report each year by the last day of its anniversary month (the month it was formed). It can be filed up to one month early. The fee is $50, and all annual reports are filed online. The Secretary of the State may administratively dissolve an entity that is more than one year behind on its annual reports.

State Tax Exemption

Connecticut follows federal status for its corporation business tax; there is no state application. A club with unrelated business income (income from a regular business unrelated to its purpose) reports it to DRS. The treasurer confirms the current form with DRS in that case.

Sales Tax

Purchases

Under Connecticut General Statutes 12-412(8), a 501(c)(3) organization pays no sales tax on purchases used exclusively for its exempt purposes, and needs no DRS permit. An officer signs CERT-119, attaches the IRS determination letter, and gives it to the vendor. Purchases are paid from club funds. Meals and lodging generally need DRS preapproval. Copies are kept six years.

Fundraiser sales

Connecticut taxes most sales by nonprofits, with two exemptions that matter to booster clubs:

• Five one-day events. Under 12-412(94), sales by a nonprofit at up to five fundraising or social events of one day’s duration per calendar year are exempt. The club may use CERT-119 to buy items for resale at those events, including meals it will resell.
• Items of $20 or less for youth activities. Under 12-412(26), Connecticut eleemosynary (charitable) organizations formed to sponsor and support youth activities, and accredited elementary or secondary schools, may sell items for $20 or less tax-exempt when the sales are for those youth activities or for organized activities of the school’s students. The club buys such items for resale with CERT-136, provided it is not registered with DRS as a retailer.

Sales outside these exemptions (a sixth event, or $35 hoodies) are taxable, and the club registers with DRS to collect tax.

Charitable Solicitation Registration

The Connecticut Solicitation of Charitable Funds Act requires charities to register with DCP’s Public Charities Unit before soliciting.

• Fee. $50 a year for a full registration.
• Renewal. Registration expires 11 months 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: May 31 for a June 30 year end. The club attests that it filed its IRS Form 990-series return.
• $50,000 exemption. A charity receiving less than $50,000 in contributions a year, and not paying anyone primarily to solicit, may claim exemption on Form CPC-54 at no cost. Contributions include grants and pledges but exclude membership dues and service fees, and the threshold uses a two-year average. A club that exceeds $50,000 in two of three years must register.
• Other exemptions. Schools with accredited curricula and certain other school parent groups are exempt by category. These category exemptions do not cover a booster club.
• Audit or review. Gross revenue of $500,000 to $1,000,000 requires a CPA audit or review; over $1,000,000 requires an audit.

Because dues and sales income are not contributions, many booster clubs qualify for the CPC-54 exemption, which is claimed once.

Raffles and Gaming

Raffles are legal under the Bazaar and Raffles Act (Connecticut General Statutes 7-170 through 7-186). Permits are issued by the municipality where the raffle is held, not by the state.

• Eligibility. DCP states that qualifying charitable, civic, educational, fraternal, veterans’, or religious organizations must be established for at least two years. The municipal raffle application form states a minimum of six months. The sources conflict; the club confirms with its town before applying.
• Application. Filed at least 15 days before ticket sales begin, with a sample ticket and a list of members in charge.
• Classes. Class 1: prizes up to $15,000, 3 months, once a year, fee up to $75. Class 2: up to $2,000, 2 months, three a year, up to $30. Class 4: up to $100, 1 month, once a year, up to $15. Class 5: up to $50,000, 9 months, five a year, up to $120. Class 6: up to $100,000, 12 months, five a year, up to $150. Towns set the actual fee within these maximums.
• Rules. Only active members may run the raffle, without pay. No alcohol prizes or prizes redeemable for cash. Cash prizes only under certain classes, with proceeds in a special checking account. No one under 16 may sell tickets.
• Report. A verified statement of receipts, expenses, and prizes is filed with the municipality by the end of the month after the raffle.
• Online. DCP states that raffle drawings cannot be conducted exclusively online. The club confirms with its town before selling tickets online.

Violations carry fines up to $1,000.

Annual Compliance Calendar for Connecticut