# Michigan Booster Club Filing Requirements

> Michigan booster club filings: $20 nonprofit articles, the October 1 annual report, AG solicitation registration, sales tax limits, and Lottery raffle licenses.

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

Michigan is cheap to enter and detailed to stay in. Incorporation and the annual report cost $20 each, but a club must register with the Attorney General unless it is all-volunteer and under $25,000, and every raffle needs a Michigan Lottery license. A 501(c)(3) buys most supplies tax-free with Form 3372, while fundraiser sales are exempt only up to $10,000 a year and only while total sales stay under $25,000. No Michigan statute specific to booster clubs was identified, though state gaming guidance names booster clubs directly.

## At a Glance

| Requirement | Agency | Form | Fee | Frequency |
|---|---|---|---|---|
| Incorporate as nonprofit | LARA Corporations Division | Articles of Incorporation, Nonprofit (form 502) | $20 | once |
| Annual/biennial report | LARA Corporations Division | Nonprofit annual report (form 2000), online only | $20 | annual, by October 1 |
| State income/franchise tax exemption | Department of Treasury | None | none | automatic |
| Sales tax exemption on purchases | Department of Treasury | Form 3372 plus IRS determination letter, given to vendors | none | at each purchase |
| Sales tax on fundraiser sales | Department of Treasury | Sales tax license, or Form 3421 or 5089 for two or fewer events | none identified | as sales occur |
| Charitable solicitation registration | Attorney General, Charitable Trust Section | CTS-01 initial, CTS-02 renewal, CTS-03 exemption request | none listed | annual |
| Raffle permit/registration | Michigan Lottery, Charitable Gaming Division | Qualification documents, then raffle license application | $15 small; $50 per drawing date large | each raffle |

## Forming a Nonprofit Corporation in Michigan

A booster club incorporates under the Michigan Nonprofit Corporation Act by filing nonprofit Articles of Incorporation (form 502) with the Corporations Division of the Department of Licensing and Regulatory Affairs (LARA), through the MiBusiness Registry Portal. The fee is $20 ($10 filing plus $10 franchise fee); 24-hour expedited handling adds $50. The articles must contain the purpose and dissolution language the IRS requires for 501(c)(3) status (federal tax exemption for charitable and educational organizations); see [How to Incorporate a Booster Club](https://boosterclub.org/start/incorporate/).

Beginning the year after formation, the club files an annual report, online only, due **October 1**, fee $20. A corporation that stops filing is automatically dissolved after LARA mails notices to its resident agent (the person designated to receive official mail), and restoring it requires every missing report. A charity also cannot dissolve voluntarily without the Attorney General's approval.

## State Tax Exemption

Michigan's corporate income tax does not apply to entities exempt from federal income tax. A club with its IRS determination letter (the letter confirming 501(c)(3) status) files no state exemption application.

## Sales Tax

**Purchases.** There is no application. A 501(c)(3) gives the vendor a completed Certificate of Exemption (Form 3372) with a copy of its IRS letter. A school's exemption does not cover its PTO or booster club. Two limits apply: property used for fundraising is exempt only if a single item costs $5,000 or less, and purchased raffle prizes owe use tax (raffle tickets themselves are not taxed; donated prizes owe nothing).

**Sales.** Retail sales by nonprofits are taxable at 6% except as Revenue Administrative Bulletin 2020-25 allows. The first $10,000 of sales in a calendar year is exempt only if total retail sales stay under $25,000. At $25,000 or more, every sale that year is taxable, whether or not tax was collected. The bulletin also says a club affiliated with a school is not a separate person for this exemption; how that applies to a separately incorporated club is unclear, so the club should ask Treasury in writing.

A selling nonprofit generally needs a sales tax license even when all sales are exempt, but a club with two or fewer sales events a year may report on Form 3421 (Special Events) or Form 5089 (Concessionaire's) instead.

## Charitable Solicitation Registration

The Charitable Organizations and Solicitations Act (MCL 400.271 et seq.) requires any organization that solicits or receives contributions in Michigan, including online, to register with the Attorney General's Charitable Trust Section.

1. **Exemption.** Organizations that raise funds only through volunteers and receive under $25,000 a year are exempt; the club confirms this with the CTS-03 Request for Exemption.
2. **Initial registration.** Otherwise, the club files CTS-01 with its bylaws, IRS letter, and a recent financial accounting.
3. **Renewal.** Registration expires seven months after fiscal year end (July 31 for a calendar year; January 31 for a June 30 year end). The club files CTS-02 at least 30 days earlier; a shorter version exists for 990-N filers.
4. **Fees.** The AG's page lists no registration fee. Confirm current financial statement and audit requirements with the agency.

## Raffles and Gaming

Raffles are legal for a qualified nonprofit licensed by the Michigan Lottery's Charitable Gaming Division.

1. **Qualify.** Booster clubs and PTOs do not fit the "educational" category, which covers schools and districts only. The Division lists booster clubs as "civic" organizations, which need a resolution from the local unit of government recognizing the club and a dissolution clause sending assets to that government or another nonprofit.
2. **License each raffle.** A small license (total prizes of $500 or less per day) costs $15 for up to three drawing dates plus $5 per added date. A large license costs $50 per drawing date. Processing takes 4 to 6 weeks.

Ticket sellers and buyers must be at least 18, so students cannot sell. A 50/50 needs a license. The one exception is a raffle at a single club meeting held mainly for another purpose, with all tickets sold and prizes awarded there and total prizes of $100 or less.

The club mails a financial statement by the 10th of the month after the drawing (an October 18 drawing reports by November 10). Division guidance does not address online ticket sales; see [Online and Electronic Raffles](https://boosterclub.org/raffles/online-raffles/). Millionaire parties (casino nights) are licensed separately by the Michigan Gaming Control Board.

## Annual Compliance Calendar for Michigan

| Filing | Due date | Agency |
|---|---|---|
| Raffle financial statement | 10th day of the month after the last drawing | Charitable Gaming Division |
| 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 |
| CTS-02 renewal | 30 days before expiration (July 1 for a calendar year; January 1 for a June 30 year end) | Attorney General |
| Nonprofit annual report ($20) | October 1 | LARA |
| Sales tax return, if licensed | As assigned, or Form 3421 after each event | Department of Treasury |

## Common Mistakes in Michigan

- **Crossing $25,000 in sales without collecting tax.** Clubs assume the $10,000 exemption always applies; crossing $25,000 makes the whole year taxable, paid from club funds.
- **Applying for a raffle license as "educational."** The application comes back, and the drawing date slips.
- **Letting students sell raffle tickets.** Sellers must be 18, and violations put the license at risk.
- **Skipping AG registration because the club is small.** The exemption needs both all-volunteer fundraising and under $25,000; a paid fundraiser removes it.
- **Missing October 1.** Unfiled reports lead to automatic dissolution, and a dissolved club cannot renew licenses until restored.

## Checklist

### Forming

- [ ] File nonprofit Articles of Incorporation with LARA ($20)
- [ ] Obtain the IRS determination letter for 501(c)(3) status
- [ ] File CTS-01 with the Attorney General, or CTS-03 if all-volunteer and under $25,000
- [ ] Give purchasing volunteers copies of Form 3372 and the IRS letter (treasurer)
- [ ] Obtain a local government resolution and qualify with the Charitable Gaming Division before any raffle (president)

### Every Year

- [ ] Apply for each raffle license 4 to 6 weeks before the drawing
- [ ] Mail the raffle financial statement (by the 10th of the month after the drawing)
- [ ] Track calendar-year retail sales against the $10,000 and $25,000 limits (treasurer)
- [ ] File Form 990-N, 990-EZ, or 990 (by the 15th day of the 5th month after fiscal year end)
- [ ] File CTS-02 (30 days before registration expires)
- [ ] File the LARA annual report online (by October 1)

## Related Pages

- [Booster Club Filing Requirements by State](https://boosterclub.org/states/) compares Michigan with every other state
- [Sales Tax for Booster Clubs](https://boosterclub.org/taxes/sales-tax/) explains exemption certificates and taxable fundraiser sales
- [How to Run a Booster Club Raffle](https://boosterclub.org/raffles/how-to-run-a-raffle/) covers tickets, drawings, and records
- [Online Fundraising for Booster Clubs](https://boosterclub.org/fundraising/online-fundraising/) covers when online giving triggers registration
- [How to File Form 990-N for a Booster Club](https://boosterclub.org/taxes/form-990-n/) covers the federal filing the AG renewal relies on

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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. State of Michigan: https://www.michigan.gov/lara/bureau-list/cscl/corps
2. State of Michigan: https://www.michigan.gov/lara/-/media/Project/Websites/lara/cscl/Folder6/Filing_Fees.pdf
3. State of Michigan: https://www.michigan.gov/lara/bureau-list/cscl/corps/corporations/maintenance/annual-filings
4. State of Michigan: https://www.michigan.gov/lara/bureau-list/cscl/corps/frequently-asked-questions
5. State of Michigan: https://www.michigan.gov/lara/bureau-list/cscl/corps/corporations/types/domestic-nonprofit-corporation
6. State of Michigan: https://www.michigan.gov/taxes/business-taxes/cit/detail/corporate-tax-base
7. State of Michigan: https://www.michigan.gov/taxes/business-taxes/sales-use-tax/information/exemptions-faq
8. State of Michigan: https://www.michigan.gov/taxes/rep-legal/rab/rabhtml/2020/revenue-administrative-bulletin-2020-25
9. State of Michigan: https://www.michigan.gov/consumerprotection/charities/charitable-organizations
10. State of Michigan: https://www.michigan.gov/cg/raffles
11. State of Michigan: https://www.michigan.gov/cg/raffles/large-vs-small-raffle
12. State of Michigan: https://www.michigan.gov/cg/qualify-and-apply
13. State of Michigan: https://www.michigan.gov/cg/-/media/Project/Websites/cg/documents/raffle/RaffleGuide.pdf
14. State of Michigan: https://www.michigan.gov/cg/-/media/Project/Websites/cg/documents/raffle/Raffle-FAQs.pdf
15. IRS: https://www.irs.gov/charities-non-profits/annual-electronic-filing-requirement-for-small-exempt-organizations-form-990-n-e-postcard