# Kentucky Booster Club Filing Requirements

> Kentucky booster club filing requirements: $8 incorporation, $15 annual report, sales tax exemptions for booster clubs, Redbook rules, and charitable gaming.

- URL: https://boosterclub.org/states/kentucky/
- Section: States
- Updated: 2026-10-08

Kentucky is the rare state that writes booster clubs into its tax code by name: sales by school-affiliated groups "such as parent-teacher organizations and booster clubs" are exempt from sales tax when the proceeds benefit the school or its students. Kentucky also regulates booster clubs through the Department of Education's school activity fund manual, known as the Redbook, which requires budgets, fundraiser approvals, and financial reports to the principal. Raffles are legal, but a club needs three years of operation in Kentucky before it can conduct charitable gaming on its own. 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 | $8 | once |
| Annual report | Secretary of State | Annual Report | $15 | yearly, January 1 to June 30 |
| State income tax exemption | Kentucky Department of Revenue | None | $0 | automatic |
| Sales tax exemption on purchases | Kentucky Department of Revenue | Purchase exemption application for resident 501(c)(3) | $0 | once |
| Sales tax on fundraiser sales | Kentucky Department of Revenue | Exempt under KRS 139.497 | n/a | n/a |
| Charitable solicitation filing | Attorney General | Copy of Form 990, or notice of intent to solicit | confirm current fee with the agency | yearly |
| Raffle license | Kentucky Horse Racing and Gaming Corporation, charitable gaming office | License, or exemption notice if $25,000 or less | confirm current fee with the agency | yearly |

## Forming a Nonprofit Corporation in Kentucky

A booster club incorporates by filing Articles of Incorporation with the Kentucky Secretary of State. The filing fee is $8, among the lowest in the country. The articles name a Kentucky registered agent and should include the IRS-required purpose and dissolution clauses.

Every Kentucky corporation files an annual report between January 1 and June 30, with a $15 fee. The Secretary of State states that domestic entities that do not file by June 30 are administratively dissolved and stay in bad standing until they reinstate. Officers turn over in May and June, so the outgoing treasurer files before handing off.

## State Tax Exemption

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

## Sales Tax

**Purchases.** KRS 139.495 exempts sales to resident nonprofit educational, charitable, or religious institutions that have qualified under Section 501(c)(3), when the items are used solely in Kentucky within the educational or charitable function. The club applies to the Department of Revenue for a purchase exemption and gives vendors its exemption certificate. A club without its own 501(c)(3) determination letter cannot use this exemption.

**Fundraiser sales.** KRS 139.497 exempts sales by elementary or secondary schools, school-sponsored clubs, and "any nonprofit, elementary, or secondary school-affiliated groups such as parent-teacher organizations and booster clubs, whose membership may be composed of individuals other than students," provided the net proceeds are used solely for the benefit of the school or its students. The exemption covers fundraising contracts in which students sell products for a percentage of gross receipts. Separately, KRS 139.495 exempts fundraising event sales by resident 501(c)(3) institutions, but not ongoing retail operations that compete with for-profit stores.

A booster club that spends its proceeds on the school's program does not collect sales tax on concessions, spirit wear, or product sales.

## Charitable Solicitation Registration

Kentucky does not have a registration system like many states, but it does require a filing with the Attorney General before soliciting (KRS 367.657). A charitable organization required to file a federal Form 990 files a copy of its most recent Form 990 with the Attorney General before any solicitation, and again each year at the same time it files with the IRS. A newly formed organization, or one that does not file a Form 990, files a notice of intent to solicit instead; the notice expires December 31 of the year filed, so it is renewed each calendar year.

KRS 367.660 exempts local solicitations by student groups and certain school parent groups for campus or group activities with the approval of the school's administration, and solicitations confined to an organization's members and their families. A booster club that solicits the public and does not clearly fit an exemption should file. Confirm current fee and form with the Attorney General.

## Raffles and Gaming

Raffles are legal in Kentucky as charitable gaming under KRS chapter 238, regulated by the charitable gaming office of the Kentucky Horse Racing and Gaming Corporation.

1. **Eligibility.** A charitable organization must hold 501(c)(3) or certain other 501(c) status and must have been established and continuously operating in Kentucky for charitable purposes, from an office in Kentucky, for three years before licensing (KRS 238.535(12)).
2. **School district license.** A school district can hold a charitable gaming license, and a program or organization affiliated with a common school may conduct charitable gaming under the district's license. A new booster club that cannot meet the three-year rule asks the district whether it can operate under the district's license.
3. **Exemption at $25,000.** A qualifying organization whose raffle gross receipts do not exceed $25,000 per year is exempt from licensing, but the combined total of all exempt gaming cannot exceed $25,000. The club notifies the office in writing before gaming and files a financial report by January 31 of the following year. A missed report rescinds the exemption, and exceeding the limit requires a retroactive license.
4. **Ticket rules.** Each ticket is a separate and equal chance, sold for the price printed on it, with a unique identifier. Winners are drawn at random at a date, time, and place announced in advance, and every advertised prize must be awarded (KRS 238.545).

A 50/50 drawing is a raffle; because all prizes must be identified in advance, the club confirms with the gaming office how to describe the pot. Online ticket sales are not addressed in the statute, so the club asks the office before selling online.

## Redbook Rules for Booster Organizations

Kentucky's Board of Education requires every school district to follow "Accounting Procedures for Kentucky School Activity Funds," the Redbook (702 KAR 3:130), with the current edition effective August 1, 2026. Booster club money is not school activity money, but the Redbook sets conditions for outside booster organizations that support a school. A booster club is a separate legal entity responsible for following IRS rules and Title IX; it carries its own general liability insurance, because the district's coverage does not extend to it; and it may not pay or enhance the salaries or stipends of district employees. The club gives the principal its Employer Identification Number (EIN, the IRS tax ID) and officer names (Form F-SA-4C) and an annual budget (Form F-SA-4B) within the first 30 days of the school year, gets each fundraiser approved before it begins (Form F-SA-2A), submits proof of insurance before fundraising, and files an annual financial report for the year ending June 30 by July 25. Local boards may add requirements.

## Annual Compliance Calendar for Kentucky

| Filing | Due date | Agency |
|---|---|---|
| Gaming financial report (if exempt) | January 31 | Charitable gaming office |
| Notice of intent to solicit (if no Form 990) | before soliciting each calendar year | Attorney General |
| Annual report ($15) | January 1 to June 30 | 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 |
| Redbook budget and officer list | within the first 30 days of the school year | Principal |
| Redbook annual financial report | July 25 | Principal |

## Common Mistakes in Kentucky

- **Missing June 30.** The annual report window closes as officers change. Missing it leads to administrative dissolution.
- **Skipping the Redbook paperwork.** Districts can refuse to approve fundraisers or facility use for clubs without a budget, insurance, and financial report.
- **Assuming the raffle exemption needs no paperwork.** It needs a written notice before gaming and a January 31 report.
- **Raffling before year three.** The three-year Kentucky operation rule applies unless the club operates under the district's license.
- **Paying coaches.** The Redbook bars boosters from enhancing district employee salaries.

## Checklist

### Forming

- [ ] File Articles of Incorporation with the Secretary of State ($8)
- [ ] Obtain an Employer Identification Number (EIN), the IRS tax ID number
- [ ] Apply for 501(c)(3) status with the IRS
- [ ] Apply to the Department of Revenue for a purchase exemption (treasurer)
- [ ] File a notice of intent to solicit with the Attorney General before the first ask
- [ ] Submit the Redbook budget, insurance proof, and fundraiser approvals to the principal

### Every Year

- [ ] File the gaming financial report (January 31, if raffling under the exemption)
- [ ] File the annual report ($15, January 1 to June 30)
- [ ] File Form 990-N (May 15 for a calendar-year club)
- [ ] File the Form 990 copy or a new notice of intent with the Attorney General
- [ ] Submit the Redbook annual financial report to the principal (treasurer)

## Related Pages

- [Booster Club Filing Requirements by State](https://boosterclub.org/states/) compares Kentucky with other states
- [Working With the School and District](https://boosterclub.org/governance/working-with-the-school/) covers district approvals and MOUs
- [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
- [Paying Coaches, Instructors, and Contractors](https://boosterclub.org/taxes/paying-people/) covers paying school staff

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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. Kentucky Secretary of State: https://www.sos.ky.gov/bus/business-filings/Pages/Fees.aspx
2. Kentucky Secretary of State: https://www.sos.ky.gov/bus/business-filings/Pages/Annual-Reports.aspx
3. Kentucky Legislature: https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=43427
4. Kentucky Legislature: https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=58196
5. Kentucky Legislature: https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=35030
6. Kentucky Legislature: https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=35032
7. Kentucky Legislature: https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=58111
8. Kentucky Legislature: https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=58116
9. Kentucky Legislature: https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=58119
10. Kentucky Legislature: https://apps.legislature.ky.gov/law/kar/titles/702/003/130/
11. Kentucky Department of Education: https://www.education.ky.gov/districts/FinRept/Documents/Redbook%202026%20Web%20Version.pdf
12. IRS: https://www.irs.gov/charities-non-profits/annual-electronic-filing-requirement-for-small-exempt-organizations-form-990-n-e-postcard