Kansas Booster Club Filing Requirements

Forming a Nonprofit Corporation in Kansas

A booster club incorporates by filing Articles of Incorporation for a not-for-profit corporation with the Kansas Secretary of State, online or by mail. The Secretary of State’s form lists a $20 fee for a not-for-profit corporation, on paper or online; the Secretary sets it by regulation under K.S.A. 17-7506. The articles name a Kansas registered agent and should include the IRS-required purpose and dissolution clauses.

Under K.S.A. 17-7504, a Kansas not-for-profit corporation files a business entity information report every two years, in even-numbered years if it formed in an even-numbered year and odd-numbered years if it formed in an odd-numbered year, by June 15. The statute sets the fee at $80 plus any amount set by Secretary of State regulation, so the club confirms the current total with the agency. A corporation that does not file can be forfeited.

State Tax Exemption

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

Sales Tax

Purchases and sales by parent-teacher groups. K.S.A. 79-3606(yy) exempts purchases of tangible personal property and services by a parent-teacher organization, and sales of tangible personal property by or on behalf of one. A qualifying parent-teacher organization buys tax-free and does not collect sales tax on its fundraiser sales.

Booster clubs. The statute does not mention booster clubs, and Kansas does not exempt nonprofit organizations as a class. A booster club organized and operated as a parent-teacher organization, with parents and teachers as members, may fit the exemption. A parents-only athletic or music booster club may not. Before using an exemption certificate, the club should confirm its status with KDOR in writing.

A club that does not qualify pays sales tax on purchases and registers with KDOR to collect state and local sales tax on taxable sales such as concessions and spirit wear. Kansas has a separate exemption for purchases by schools themselves (K.S.A. 79-3606(c)), which a booster club cannot use.

Charitable Solicitation Registration

Kansas requires charitable organizations to register with the Attorney General before soliciting funds in the state (K.S.A. 17-1763). The registration fee is $25. The Secretary of State formerly handled charitable 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, so older guides may point to the wrong office.

Most small booster clubs are exempt under K.S.A. 17-1762(d): an organization that does not intend to receive, and does not receive, more than $10,000 in contributions in its tax period is exempt if all of its fundraising is done by unpaid volunteers. If contributions exceed $10,000 in a tax period, the club must register within 30 days after the end of that tax period. A club that pays a fundraising company loses the exemption regardless of size.

Registrations expire on the last day of the sixth month after the fiscal year ends (June 30 for a calendar-year club, December 31 for a June 30 year end), so a registered club renews every year. A club with more than $500,000 in contributions files an audited financial statement with a certified public accountant’s (CPA) opinion.

Raffles and Gaming

Kansas voters approved charitable raffles by constitutional amendment in 2014, and the Kansas Charitable Gaming Act (K.S.A. 75-5171 and following) now covers raffles by bona fide nonprofit religious, charitable, fraternal, educational, or veterans’ organizations. KDOR’s Office of Charitable GamingCharitable gamingRaffles, bingo, and other games of chance that state law allows a nonprofit to run to raise money, often under a state or local license with limits on prizes and on how proceeds are used. Whether a booster club may hold them varies by state.All terms regulates them.

1. Eligibility. A booster club must fit one of the statutory categories. A “nonprofit charitable organization” must be exempt from federal income tax and be determined by the administrator to be a bona fide charitable organization. The “educational organization” category covers schools themselves. KDOR decides whether a booster club qualifies; no years-in-existence requirement appears in the definitions.
2. No license at $25,000 or less. A qualifying organization whose annual raffle gross receipts do not exceed $25,000 does not need a license (K.S.A. 75-5175(c)). KDOR measures the year from July 1 to June 30.
3. License above $25,000. The annual fee is $25 for receipts over $25,000 to $50,000, $50 to $75,000, $75 to $100,000, and $100 above $100,000. Applications are due at least 30 days before any tickets are sold (K.A.R. 92-23-71).
4. Restrictions. A licensee may not use an electronic gaming device to sell raffle tickets or conduct raffles, and may not hire a professional raffle or lottery vendor to run a raffle. KDOR guidance requires each ticket to show the organization, license number, the word “Raffle,” drawing details, price, whether presence is required, and a sequential number, and tickets must be paid in advance.

KDOR’s raffle page says tickets may be sold online if all other requirements are met, while the statute bars electronic gaming devices for selling tickets. The line between the two is unclear, so the club asks KDOR before selling online. A 50/50 is a raffle and counts toward the $25,000 receipts total.

Annual Compliance Calendar for Kansas