# Maryland Booster Club Filing Requirements > Maryland booster club filing rules: SDAT incorporation and annual report, the sales tax exemption for school groups, charity registration, and raffle permits. - URL: https://boosterclub.org/states/maryland/ - Section: States - Updated: 2026-10-06 A Maryland booster club files with three state offices and, for raffles, with its county. Maryland exempts sales by school organizations, and the Comptroller names band and chorus boosters as examples, so a school-recognized club's fundraiser sales are free of sales tax. There is no statewide raffle license; Criminal Law Title 13 sets raffle rules county by county. No other Maryland statute addresses booster clubs specifically. ## At a Glance | Requirement | Agency | Form | Fee | Frequency | |---|---|---|---|---| | Incorporate as nonprofit | State Department of Assessments and Taxation (SDAT) | Articles of Incorporation for a Nonstock Corporation | $170 | once | | Annual/biennial report | SDAT | Form 1 Annual Report | $0 for nonstock corporations | annual, April 15 | | State income/franchise tax exemption | Comptroller of Maryland | none | $0 | automatic | | Sales tax exemption on purchases | Comptroller of Maryland | Exemption Certificate application | no fee listed | renew every 5 years | | Sales tax on fundraiser sales | Comptroller of Maryland | none (exempt for school-recognized groups) | $0 | ongoing | | Charitable solicitation registration | Secretary of State | COR-92 or Fund-Raising Notice | $0 to $300 | annual | | Raffle permit/registration | County | county form | varies | per raffle | ## Forming a Nonprofit Corporation in Maryland A booster club incorporates as a nonstock corporation (one with members instead of shareholders) by filing Articles of Incorporation with SDAT. The charter must state that the corporation cannot issue capital stock (Corporations and Associations 5-202), and the club must keep a Maryland principal office and a resident agent who accepts legal papers (2-108). The IRS-required purpose and dissolution language is covered in [How to Incorporate a Booster Club](https://boosterclub.org/start/incorporate/). The fee for a nonstock corporation organized under 501(c)(3) (the Internal Revenue Code section for tax-exempt charities) is $150, including $50 for the Maryland Nonprofit Development Center Program Fund, plus a $20 organization fee: $170 total. Online filing through Maryland Business Express adds a $50 expedited fee. Every Maryland corporation files an annual report with SDAT by April 15 (Tax-Property 11-101). It is free for a nonstock corporation but mandatory; SDAT can forfeit the charter of a corporation that does not file (Corporations and Associations 3-503). ## State Tax Exemption Maryland automatically exempts from income tax any organization exempt under Internal Revenue Code section 501 (Tax-General 10-104). No application or fee is required. The exception is unrelated business taxable income (UBTI, income from a regular business unrelated to the club's purpose); a club with UBTI files Maryland Form 500 (Tax-General 10-812). ## Sales Tax **Purchases.** The Comptroller issues a Sales and Use Tax Exemption Certificate to nonprofit charitable and educational organizations located in Maryland or an adjacent jurisdiction. The club applies through Maryland Tax Connect with its IRS determination letter, articles, and bylaws; no fee is listed. Certificates renew every five years, with renewal due August 1. Purchases must carry on the club's work, and a vendor that does not record the certificate number charges tax (COMAR 03.06.01.22). **Sales.** Tax-General 11-204(b)(6), effective July 1, 2013, exempts sales by a parent-teacher organization "or other organization within an elementary or secondary school in the State or within a school system in the State." Comptroller guidance defines "other organization" as a formal group of students, teachers, administrators, or parents, recognized by a school, that supports an educational or extracurricular activity and raises funds. School recognition is the condition that matters. A club the school does not recognize must obtain a sales and use tax license and collect tax on taxable sales; Maryland has no occasional-sale exemption. ## Charitable Solicitation Registration A charity must register with the Secretary of State's Charitable Organizations Division before soliciting. Texts, social media, and email count, so an online donation page triggers the rule. Religious and members-only groups are exempt; a booster club generally is not. | Contributions, prior fiscal year | Filing | Annual fee | |---|---|---| | Under $25,000 | Exempt Organization Fund-Raising Notice | $0 ($50 with a professional solicitor) | | $25,000 to $50,000 | COR-92, then Annual Update | $50 | | $50,001 to $75,000 | same | $75 | | $75,001 to $100,000 | same | $100 | | $100,001 to $500,000 | same | $200 | | $500,001 and above | same | $300 | Contributions include donations, grants, and special event revenue. Contributions of $400,000 to $1,000,000 require a review by an independent certified public accountant (CPA); $1,000,000 or more requires a CPA audit. A 990-N filer attaches state form COF-85 instead of a Form 990. The fiscal year is the 12-month accounting period in the bylaws. The Annual Update is due six months after it ends, extended automatically to the 15th day of the 11th month: June 30, extended to November 15, for a calendar-year club; December 31, extended to May 15, for a June 30 fiscal year. The Fund-Raising Notice is due within eight months: August 31, or the last day of February. Delinquent registrations owe a $25 late fee that grows $25 each month. ## Raffles and Gaming Raffles are legal for a qualified 501(c)(3) booster club, under the rules of the county where the raffle is held. Title 13, Subtitle 2 allows a bona fide charitable or civic organization to hold a "gaming event" (a carnival, bazaar, or raffle) in 15 listed counties if no individual profits. Examples: - **Montgomery County.** A county permit is required for each raffle except a 50/50 raffle (half the ticket money goes to the winner). The club must be located in the county, those running the raffle must be county residents and members, and a club is limited to 12 raffles a year. 50/50 raffles are unlimited if each prize is $300 or less. - **Baltimore County.** A county permit is required before any gaming event, and most net proceeds must be spent in the county. - **Prince George's County.** A written county permit is required before a "benefit performance" where games award prizes. Real property may be raffled no more than twice a year (Criminal Law 12-106). No Maryland statute authorizes online raffle ticket sales, and member-and-resident rules make them doubtful; the club should get written county approval first. Bingo needs a separate county license. ## Annual Compliance Calendar for Maryland | Filing | Due date | Agency | |---|---|---| | Form 1 Annual Report (no fee) | April 15 | SDAT | | Form 990-N (e-Postcard), or Form 990-EZ/990 if gross receipts are larger | 15th day of the 5th month after fiscal year end (May 15 for a calendar-year club; November 15 for a June 30 fiscal year) | IRS | | Annual Update ($25,000 or more) | 6 months after fiscal year end (extension to 15th day of 11th month) | Secretary of State | | Fund-Raising Notice (under $25,000) | 8 months after fiscal year end | Secretary of State | | Exemption certificate renewal | August 1, every 5 years | Comptroller | ## Common Mistakes in Maryland - Skipping the SDAT annual report because it is free. Charter forfeiture removes the officers' liability protection. - Assuming a small club need not file with the Secretary of State. Clubs under $25,000 file the free notice yearly or face late fees. - Never getting written school recognition. Without it, concession and spirit-wear sales become taxable. - Running a raffle without checking county rules. A Montgomery County club that skips the permit, or holds a 13th raffle, is conducting an illegal raffle. ## Checklist ### Forming - [ ] File Articles of Incorporation with SDAT, naming a resident agent ($170) (president) - [ ] Obtain an EIN (Employer Identification Number, the IRS ID number) and apply for 501(c)(3) status - [ ] Get written recognition from the school - [ ] Apply for a Sales and Use Tax Exemption Certificate (treasurer) - [ ] File COR-92 or the Fund-Raising Notice before the first solicitation - [ ] Confirm the county raffle permit process before announcing a raffle ### Every Year - [ ] File the SDAT annual report (by April 15) - [ ] File Form 990-N, 990-EZ, or 990 (by the 15th day of the 5th month after fiscal year end) (treasurer) - [ ] File the Annual Update (6 months after fiscal year end) or Fund-Raising Notice (8 months after) - [ ] Obtain a county permit before each raffle and keep records two years - [ ] Renew the exemption certificate when notified (by August 1) ## Related Pages - [Booster Club Filing Requirements by State](https://boosterclub.org/states/) compares Maryland with other states - [Sales Tax for Booster Clubs](https://boosterclub.org/taxes/sales-tax/) covers exemptions on purchases and sales - [How to File Form 990-N](https://boosterclub.org/taxes/form-990-n/) walks through the federal filing - [Are Booster Club Raffles Legal](https://boosterclub.org/raffles/are-raffles-legal/) summarizes raffle law by state - [Online Fundraising for Booster Clubs](https://boosterclub.org/fundraising/online-fundraising/) explains when online giving triggers registration --- *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. Maryland Department of Assessments and Taxation: https://egov.maryland.gov/BusinessExpress/Payment/FeesSchedule 2. Maryland General Assembly: https://mgaleg.maryland.gov/mgawebsite/laws/StatuteText?article=gca§ion=1-203 3. Maryland General Assembly: https://mgaleg.maryland.gov/mgawebsite/laws/StatuteText?article=gca§ion=1-204 4. Maryland General Assembly: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gca§ion=2-108&enactments=false 5. Maryland General Assembly: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gca§ion=3-503&enactments=false 6. Maryland General Assembly: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gca§ion=5-202&enactments=false 7. Maryland General Assembly: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtp§ion=11-101&enactments=false 8. Maryland General Assembly: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtg§ion=10-104&enactments=false 9. Maryland General Assembly: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtg§ion=10-812&enactments=false 10. Maryland General Assembly: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtg§ion=11-204&enactments=false 11. Maryland General Assembly: https://mgaleg.maryland.gov/2013RS/fnotes/bil_0002/hb0232.pdf 12. Comptroller of Maryland: https://www.marylandcomptroller.gov/businesses/nonprofits.html 13. Comptroller of Maryland: https://marylandtaxes.gov/business/sales-use/special-situations/sales-by-pto.php 14. Comptroller of Maryland: https://services.marylandcomptroller.gov/taxes?id=kb_article_view&sysparm_article=KB0010165 15. Code of Maryland Regulations: https://regs.maryland.gov/us/md/exec/comar/03.06.01.22 16. Maryland Secretary of State: https://sos.maryland.gov/Charity/Pages/Registering-Charity.aspx 17. Maryland Secretary of State: https://sos.maryland.gov/Charity/Pages/FAQ.aspx 18. Maryland Secretary of State: https://sos.maryland.gov/documents/cor-92.pdf 19. Maryland Secretary of State: https://sos.maryland.gov/Documents/AnnualUpdateForm.pdf 20. Maryland Secretary of State: https://sos.maryland.gov/Documents/ExemptOrganizationFund.pdf 21. Maryland General Assembly: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gcr§ion=12-106&enactments=false 22. Maryland General Assembly: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gcr§ion=13-201&enactments=false 23. Maryland General Assembly: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gcr§ion=13-202&enactments=false 24. Maryland General Assembly: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gcr§ion=13-203&enactments=false 25. Maryland General Assembly: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gcr§ion=13-402&enactments=false 26. Maryland General Assembly: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gcr§ion=13-403&enactments=false 27. Maryland General Assembly: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gcr§ion=13-602&enactments=false 28. Maryland General Assembly: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gcr§ion=13-603&enactments=false 29. Maryland General Assembly: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gcr§ion=13-1802&enactments=false 30. Maryland General Assembly: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gcr§ion=13-1810&enactments=false 31. Maryland General Assembly: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gcr§ion=13-1811&enactments=false 32. Maryland General Assembly: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gcr§ion=13-1812&enactments=false 33. Maryland General Assembly: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gcr§ion=13-1813&enactments=false 34. Maryland General Assembly: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gcr§ion=13-1902&enactments=false 35. Maryland General Assembly: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gcr§ion=13-1905&enactments=false 36. IRS: https://www.irs.gov/charities-non-profits/annual-electronic-filing-requirement-for-small-exempt-organizations-form-990-n-e-postcard