# Iowa Booster Club Filing Requirements

> Iowa booster club filing requirements: $20 incorporation, free biennial report, fundraiser sales tax exemption, no charity registration, and raffle licenses.

- URL: https://boosterclub.org/states/iowa/
- Section: States
- Updated: 2026-10-06

Iowa is one of the few states that names booster clubs in its gambling law. A booster club recognized in a notarized letter from the school district can qualify for a charitable gambling license, and a school district can let a parent support group use the school's own license. Iowa also exempts most fundraiser sales from sales tax when the profits go to educational purposes, charges $20 to incorporate, and has no charitable solicitation registration. The trade-offs: no exemption on the club's own purchases, and raffle ticket sales are subject to sales tax. A 501(c)(3) is a nonprofit recognized by the Internal Revenue Service (IRS) as exempt from federal income tax.

## At a Glance

| Requirement | Agency | Form | Fee | Frequency |
|---|---|---|---|---|
| Incorporate as nonprofit | Secretary of State | Articles of Incorporation (Fast Track Filing) | $20 | once |
| Biennial report | Secretary of State | Biennial Report | $0 | January 1 to April 1 of odd-numbered years |
| State income tax exemption | Iowa Department of Revenue | None | $0 | automatic |
| Sales tax exemption on purchases | Iowa Department of Revenue | None for booster clubs | n/a | n/a |
| Sales tax on fundraiser sales | Iowa Department of Revenue | Exempt if profits go to educational use (Iowa Code 423.3(78)); raffles taxable | n/a | ongoing |
| Charitable solicitation registration | none | Not required | n/a | n/a |
| Raffle license | Department of Inspections, Appeals, and Licensing (DIAL) | Qualified organization license | $15 (14 days) to $150 (one or two years) | per license period |

## Forming a Nonprofit Corporation in Iowa

A booster club incorporates under the Revised Iowa Nonprofit Corporation Act (Iowa Code chapter 504) by filing Articles of Incorporation with the Secretary of State, online through Fast Track Filing. The fee is $20. The articles name a registered agent with an Iowa address and should include the IRS-required purpose and dissolution clauses.

Iowa nonprofits file a biennial report, not an annual one, and there is no fee. The first report is due between January 1 and April 1 of the first odd-numbered year after the year of incorporation, and every odd-numbered year after that. A club incorporated in 2026 files between January 1 and April 1, 2027, then in 2029. The report lists the registered agent, principal office, president, secretary, treasurer, and one director. The Secretary of State may administratively dissolve a corporation that has not filed within 60 days after the due date.

## State Tax Exemption

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

## Sales Tax

**Purchases.** Iowa has no general sales tax exemption for nonprofit organizations. Iowa Code 423.3 lists purchase exemptions for specific types, such as private nonprofit educational institutions, nonprofit museums, and nonprofit hospitals, and a booster club is not among them. The club pays sales tax on supplies and equipment, including items it donates to the school.

**Fundraiser sales.** Iowa Code 423.3(78) exempts the sales price of goods or services sold by any entity when the profits are used by or donated to a 501(c)(3) organization, a government entity, or a nonprofit private educational institution, and the entire profits are spent for educational, religious, or charitable purposes. A booster club whose profits go to a public school or to its own 501(c)(3) educational purposes generally fits. The exemption is lost to the extent profits are not spent for those purposes.

The same subsection excludes raffles, bingo, and games of skill or chance from the exemption. Raffle entries are taxable at Iowa's 6 percent state rate plus any local option tax, which is why DIAL requires proof of an Iowa sales tax permit with a gambling license application.

## Charitable Solicitation Registration

Iowa has no charitable solicitation registration requirement for charitable organizations. A volunteer-run booster club files nothing with the Attorney General before soliciting donations, and online fundraising does not trigger a state filing. Iowa's consumer protection laws on misleading solicitations still apply.

## Raffles and Gaming

Raffles are legal in Iowa for qualified organizations licensed by DIAL under Iowa Code chapter 99B. A qualified organization must have an active membership of at least 12 people and a governing body that is not self-perpetuating (members, not the board itself, elect the board), and must meet one of several tests. Two fit booster clubs:

1. It is exempt under Section 501(c)(3), shown by its IRS determination letter.
2. It is a parent-teacher organization or booster club recognized as a fundraiser and supporter of a school district or school, in a notarized letter signed by the school board president, the superintendent, or a principal.

**Licenses.** DIAL charges $15 for a 14-day license, $40 for 90 days, $75 for 180 days, and $150 for one year or two years. Applications are due at least 30 days before ticket sales or promotion begin, and processing takes 30 days. The two-year license requires five years in existence, or two years for a local chapter of a national tax-exempt organization.

**Raffle sizes.** A very small raffle has cash prizes of $1,000 or less and entries sold of $1,000 or less (or donated merchandise prizes of $5,000 or less with entries of $5,000 or less). A small raffle has prizes over $1,000 up to $10,000; a large raffle, over $10,000 up to $100,000, limited to one per calendar year for most licensees; a very large raffle, up to $200,000 or real property, with an extra $100 license.

**Without a license.** A qualified organization may hold one very small raffle per calendar year without a license. It still follows the raffle rules and pays sales tax on entries, but it is exempt from the annual report.

**School licenses.** A school district may hold a qualified organization license and, with school board approval, let any parent support group use it for up to two events per calendar year.

**Reports.** Licensed organizations file an annual report with DIAL by January 31 for the prior calendar year.

**Electronic raffles and 50/50s.** Only a holder of the two-year license may run an electronic raffle, using a system from a DIAL-licensed manufacturer or distributor, one electronic raffle per day. Entries are issued at the time of sale. A 50/50 is a raffle sized by its pot. Selling entries over the internet is not clearly addressed, so the club asks DIAL first.

## Annual Compliance Calendar for Iowa

| Filing | Due date | Agency |
|---|---|---|
| Gambling annual report (if licensed) | January 31 | DIAL |
| Biennial report ($0) | January 1 to April 1, odd-numbered years | Secretary of State |
| Form 990-N (federal, gross receipts normally $50,000 or less) | 15th day of the 5th month after the fiscal year (the club's 12-month accounting year) ends: May 15 for a calendar year, November 15 for a June 30 year end | IRS |
| Sales tax returns (raffles and taxable sales) | per permit filing frequency | Iowa Department of Revenue |
| Raffle license application | 30 days before sales or promotion begin | DIAL |

## Common Mistakes in Iowa

- **Forgetting sales tax on raffle tickets.** Clubs assume the educational exemption covers raffles. It does not, and DIAL checks for a sales tax permit.
- **A self-perpetuating board.** Bylaws that let the board elect its own successors can disqualify the club from gambling licenses. Members should elect officers.
- **Applying late.** The 30-day lead time counts from the start of ticket sales, not the drawing.
- **Missing the odd-year report.** The biennial report is free but easy to forget. Administrative dissolution follows 60 days after the due date.
- **Claiming a purchase exemption.** A booster club's exemption covers its sales, not its purchases.

## Checklist

### Forming

- [ ] File Articles of Incorporation through Fast Track Filing ($20)
- [ ] Write bylaws in which members elect the board, with at least 12 active members
- [ ] Obtain an Employer Identification Number (EIN), the IRS tax ID number
- [ ] Apply for 501(c)(3) status, or obtain the school's notarized recognition letter for gambling purposes
- [ ] Obtain an Iowa sales tax permit if the club will run raffles or taxable sales (treasurer)
- [ ] Choose a DIAL license period that covers ticket sales through the drawing

### Every Year

- [ ] File the DIAL gambling annual report (January 31, if licensed)
- [ ] File the biennial report (January 1 to April 1, odd-numbered years)
- [ ] File Form 990-N (May 15 for a calendar-year club)
- [ ] Apply for raffle licenses 30 days before sales begin
- [ ] Remit sales tax on raffle entries (treasurer)

## Related Pages

- [Booster Club Filing Requirements by State](https://boosterclub.org/states/) compares Iowa with other states
- [Sales Tax for Booster Clubs](https://boosterclub.org/taxes/sales-tax/) explains fundraiser sales and purchases
- [Are Booster Club Raffles Legal](https://boosterclub.org/raffles/are-raffles-legal/) summarizes raffle law nationwide
- [How to Run a Booster Club Raffle](https://boosterclub.org/raffles/how-to-run-a-raffle/) covers permits, tickets, and records
- [Membership Rules in Booster Club Bylaws](https://boosterclub.org/bylaws/membership-provisions/) explains member voting rights

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*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. Iowa Secretary of State: https://sos.iowa.gov/business/FormsAndFees.html
2. Iowa Legislature: https://www.legis.iowa.gov/docs/code/504.pdf
3. Iowa Legislature: https://www.legis.iowa.gov/docs/code/423.pdf
4. Iowa Legislature: https://www.legis.iowa.gov/docs/code/99B.pdf
5. Iowa Department of Inspections, Appeals, and Licensing: https://dial.iowa.gov/licenses/gambling-amusement-devices/charitable-gambling
6. Iowa Department of Inspections, Appeals, and Licensing: https://dial.iowa.gov/licenses/gambling-amusement-devices
7. IRS: https://www.irs.gov/charities-non-profits/annual-electronic-filing-requirement-for-small-exempt-organizations-form-990-n-e-postcard