Indiana Booster Club Filing Requirements

Forming a Nonprofit Corporation in Indiana

A booster club incorporates under the Indiana Nonprofit Corporation Act of 1991 by filing Articles of Incorporation with the Secretary of State, Business Services Division, online through INBiz or by mail. The paper form (State Form 4162) lists a $50 filing fee; confirm the online fee with the agency. The articles name a registered agent with an Indiana address and should include the IRS-required purpose and dissolution clauses. A dissolution clause also matters for raffles: the charity gaming law requires one.

Indiana 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 file a Business Entity Report every two years, due in the anniversary month of incorporation. The paper form lists a $20 fee for nonprofits; confirm the online fee with the agency. A corporation that does not file can be administratively dissolved, which ends its authority to act until it is reinstated.

State Tax Exemption

An organization exempt from federal income tax under Section 501(c)(3) is also exempt from Indiana income tax without a separate application. A club with unrelated business income reports it to Indiana on the state exempt organization return.

Sales tax exemption is not automatic. Under IC 6-2.5-5-25(c), a nonprofit must file an application for exemption with the Department of Revenue no later than 120 days after it is formed. The DOR application is Form NP-20A, filed online. After approval, the club files a report with the DOR on or before the 15th day of the 5th month every five years after formation. If the report is not filed, the DOR sends a notice, and if the club does not respond within 60 days the exemption is canceled. The DOR may reinstate the exemption if the club shows by petition that the failure was due to excusable neglect.

Sales Tax

Purchases. Indiana exempts purchases by organizations organized and operated exclusively for religious, charitable, educational, or civic purposes when the items are used to carry on, or to raise money to carry on, the not-for-profit purpose (IC 6-2.5-5-25). An approved booster club gives vendors its exemption certificate when buying equipment, uniforms, or concession inventory. The exemption does not apply to an organization operated predominantly for social purposes.

Fundraiser sales. IC 6-2.5-5-26 exempts sales of tangible personal property by a qualifying nonprofit that makes the sale to raise money for its not-for-profit purpose and did not make more than $100,000 in sales in the current or previous calendar year. Once sales pass $100,000, the club collects Indiana’s 7 percent sales tax for the rest of that year and every year after, until it has two consecutive years under $100,000. The total includes sales by every unit operating under the club’s registration. Large clubs that exceed the limit register as retail merchants and file sales tax returns.

Charitable Solicitation Registration

Indiana has no state charitable solicitation registrationCharitable solicitation registrationRegistration with a state office, usually the attorney general or secretary of state, before asking the public for donations, typically renewed each year with a financial report. Whether it is required, and the thresholds and fees, vary by state.All terms requirement for charitable organizations. A volunteer-run booster club does not register with the Attorney General, and online fundraising does not trigger a state filing. Indiana does require professional fundraiser consultants and professional solicitors to register with the Attorney General, so a club that hires a paid fundraising company should confirm the company is registered. Some local governments regulate door-to-door solicitation.

Raffles and Gaming

Raffles are legal in Indiana for qualified organizations under the charity gaming law (IC 4-32.3), administered by the Indiana Gaming Commission. A qualified organization includes a bona fide charitable organization operating in Indiana that is exempt from federal income tax under Section 501(c) and has a dissolution clause directing remaining assets to its nonprofit purposes. The current statute does not repeat the five-year existence requirement found in earlier charity gaming law; the club confirms eligibility with the IGC before its first licensed event.

1. Small raffles need no license. A qualified organization is not required to obtain a license if the value of all prizes awarded is $2,500 or less for a single event and $7,500 or less in a calendar year (IC 4-32.3-4-3). A club planning more than one such event in a year sends the IGC an annual written notice of the estimated frequency, locations, and prize values at least 30 days before the first event, and keeps accurate financial records.
2. Licenses. Above those limits, the club obtains a single activity license (one raffle at one time and place) or an annual activity license. The first-year license fee is $50; renewal fees depend on adjusted gross revenue.
3. Conduct. Licensed raffle funds go into a separate, segregated account, and the club reports financial results to the IGC under its rules. Operators and workers are members of the club; since July 1, 2026, an operator who is not a full-time employee may receive up to $50 per event, and the club documents each payment.
4. Electronic raffles. A qualified organization may sell raffle chances and draw winners electronically only with raffle software approved by an approved gaming laboratory and the IGC (IC 4-32.3-5-24.5). Participants must be at least 18, and IGC rules require the club to sell only to buyers located in Indiana; the club confirms current verification requirements with the IGC.

A 50/50 drawing is a raffle and counts toward the prize limits; a 50/5050/50 raffleA raffle in which the winner receives half of the ticket sales and the club keeps the other half, usually sold and drawn during one game or event. It is legally a raffle with a cash prize, so state raffle law applies.All terms pot that pays out more than $2,500 requires a license. Bingo, pull tabs, and casino nights are separately regulated under the same law.

No Indiana statute specific to school booster clubs was found; district policies on school-connected organizations still apply.

Annual Compliance Calendar for Indiana