# Minnesota Booster Club Filing Requirements

> Minnesota booster club filings: $70 articles, free annual renewal, ST16 sales tax exemption, the 24-day fundraising rule, AG registration, and raffle permits.

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

Minnesota lets a 501(c)(3) booster club hold one raffle with up to $5,000 in prizes without filing anything with the Gambling Control Board, but bans internet ticket sales at every level. Purchases are tax-free only after the Department of Revenue grants Nonprofit Exempt Status, and fundraiser sales stay tax-free only while the club holds 24 or fewer days of fundraising events a year. No Minnesota statute specific to booster clubs was identified.

## At a Glance

| Requirement | Agency | Form | Fee | Frequency |
|---|---|---|---|---|
| Incorporate as nonprofit | Secretary of State | Articles of Incorporation (Chapter 317A) | $70 mail; $90 online or in person | once |
| Annual/biennial report | Secretary of State | Annual Renewal | $0 | annual, by December 31 |
| State income/franchise tax exemption | Department of Revenue | No separate application | none | automatic |
| Sales tax exemption on purchases | Department of Revenue | Form ST16; Form ST3 to vendors | none identified | once |
| Sales tax on fundraiser sales | Department of Revenue | Tax registration if sales are taxable | none | as sales occur |
| Charitable solicitation registration | Attorney General, Charities Division | Registration, then annual report | $25 | annual, above $25,000 |
| Raffle permit/registration | Gambling Control Board | None (excluded) or Form LG220 | $0 or $100 per event | per event |

## Forming a Nonprofit Corporation in Minnesota

A booster club files Articles of Incorporation under Chapter 317A with the Secretary of State: $70 by mail, or $90 in person or online (expedited). The articles need the purpose and dissolution language the IRS requires for 501(c)(3) status, the federal exemption for charitable and educational organizations. See [How to Incorporate a Booster Club](https://boosterclub.org/start/incorporate/).

The corporation files a free Annual Renewal by December 31 of each calendar year, starting the year after incorporation (Minn. Stat. 317A.823). Missing it leads to involuntary dissolution. Reinstatement is free, but a dissolved club cannot produce the certificate of good standing that banks and the Gambling Control Board request.

## State Tax Exemption

Minnesota has no separate income tax exemption application. Under Minn. Stat. 290.05, an organization exempt from federal income tax is exempt from the corporate franchise tax, except on unrelated business income (income from a regular business activity unrelated to the club's purpose). A change in federal status must be reported to the Department of Revenue within 90 days.

## Sales Tax

**Purchases.** Federal exemption does not carry over to sales tax. The club applies on Form ST16, Application for Nonprofit Exempt Status, and after approval gives vendors Form ST3, Certificate of Exemption. The exemption covers items used in the club's charitable or educational work but never prepared food, candy, soft drinks, alcohol, or lodging. Goods bought for resale at a fundraiser can be bought on an ST3 as a resale purchase.

**Sales.** Two exemptions apply:

1. **24-day rule (any nonprofit).** Sales at, and admissions to, fundraising events are exempt, including prepared food, candy, and soft drinks, if the club records all gross receipts, keeps a separate accounting for each event, and uses all net proceeds for charitable or educational purposes. **If fundraising events exceed 24 days in a year, all gross receipts become taxable**, not only sales after day 24 (Minn. Stat. 297A.70, subd. 14).
2. **Youth group rule.** A nonprofit that exists solely to provide educational or social activities for young people primarily age 18 and under may make its first $20,000 of fundraising sales each year tax-free, with no day limit. Whether a parent-run booster club fits this definition is unsettled; the Department of Revenue's fundraising flowcharts are the place to check.

A club outside both exemptions must register and collect sales tax.

## Charitable Solicitation Registration

A charity must register with the Attorney General's Charities Division within 30 days after its contributions in an accounting year exceed $25,000, excluding the direct cost of prizes (Minn. Stat. 309.52). The fee is $25. Online donations count.

The small-organization exemption (Minn. Stat. 309.515) also requires that all work, including fundraising, be done by unpaid persons and that no officer benefit. Hiring a professional fundraiser ends it, and a club that pays a coach should confirm with the Attorney General whether the exemption still holds. The exemption for accredited schools does not extend to a separately incorporated booster club.

A registered club files an annual report by the 15th day of the 7th month after fiscal year end (July 15 for a calendar year; January 15 for a June 30 year end). The fee is $25, plus $50 if late. Total revenue over $750,000 requires an audit by an independent certified public accountant (CPA).

## Raffles and Gaming

Raffles are legal for a nonprofit that can show an IRS 501(c) letter or a current certificate of good standing. The Gambling Control Board recognizes three tiers:

1. **Excluded raffle (no filing).** A 501(c)(3) club may award up to $1,500 in prizes across any number of raffles in a calendar year, or up to $5,000 at one event per year. The club keeps stubs, prize and income records, and proceeds records for 3.5 years. Local governments may add requirements.
2. **Exempt permit.** The club files Form LG220 for each event: $100, or $150 if received under 30 days before it. Limits are 5 events and $50,000 in prizes per calendar year, with 30 days' notice to the city or county (60 in a city of the first class). Form LG220A, the financial report, is due within 30 days after each event.
3. **License.** Ongoing gambling requires a license, three years of existence, and 15 active members.

A club may use only one of the excluded or exempt categories in a calendar year.

At every tier, tickets may not be sold on the internet (online advertising is allowed) or paid by credit card. Persons under 18 may sell tickets but may not buy them or win. Share-the-pot (50/50) raffles are permitted with the split posted in the house rules. Electronic raffle systems are allowed by statute for licensed organizations only, and none is currently approved. See [Online and Electronic Raffles](https://boosterclub.org/raffles/online-raffles/).

## Annual Compliance Calendar for Minnesota

| Filing | Due date | Agency |
|---|---|---|
| Form LG220 exempt permit application | At least 30 days before each event | Gambling Control Board |
| Form LG220A financial report | Within 30 days after each event | Gambling Control Board |
| 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 |
| Charitable annual report, if registered | 15th day of the 7th month after fiscal year end (July 15 calendar year; January 15 for June 30 year end) | Attorney General |
| Annual Renewal ($0) | December 31 | Secretary of State |

## Common Mistakes in Minnesota

- **Running concessions on more than 24 days.** A season of home games passes 24 event days quickly, and then all of that year's fundraising receipts are taxable.
- **Assuming 501(c)(3) status covers purchases.** Without an approved ST16, vendors must charge tax.
- **Selling raffle tickets online or by credit card.** Both are prohibited and risk the club's gambling eligibility.
- **Mixing raffle categories.** An excluded raffle in spring blocks an exempt permit for a fall gala that year.
- **Skipping the free Annual Renewal.** It is easy to forget, and involuntary dissolution follows.

## Checklist

### Forming

- [ ] File Articles of Incorporation with the Secretary of State ($70 mail or $90 online)
- [ ] Obtain the IRS determination letter for 501(c)(3) status
- [ ] File Form ST16 and keep blank Form ST3s for purchasers (treasurer)
- [ ] Decide whether the year's raffles will be excluded or exempt-permit raffles (board)

### Every Year

- [ ] Count fundraising event days and stop before day 25 or register to collect sales tax (treasurer)
- [ ] File Form LG220 at least 30 days before each permitted raffle and notify the city or county
- [ ] File Form LG220A within 30 days after each permitted raffle (treasurer)
- [ ] Register with the Attorney General within 30 days of exceeding $25,000 in contributions
- [ ] File Form 990-N, 990-EZ, or 990 (by the 15th day of the 5th month after fiscal year end)
- [ ] File the Attorney General annual report if registered (15th day of the 7th month after fiscal year end)
- [ ] File the Annual Renewal with the Secretary of State (by December 31)

## Related Pages

- [Booster Club Filing Requirements by State](https://boosterclub.org/states/) compares Minnesota with every other state
- [Sales Tax for Booster Clubs](https://boosterclub.org/taxes/sales-tax/) explains exemption certificates and taxable fundraiser sales
- [Are Booster Club Raffles Legal](https://boosterclub.org/raffles/are-raffles-legal/) summarizes raffle rules in every state
- [How to Run a Booster Club Raffle](https://boosterclub.org/raffles/how-to-run-a-raffle/) covers tickets, drawings, and records
- [Booster Club Compliance Calendar](https://boosterclub.org/taxes/compliance-calendar/) puts state and federal deadlines in one place

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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. Minnesota Secretary of State: https://www.sos.mn.gov/business-liens/start-a-business/business-filing-certification-fee-schedule/
2. Minnesota Revisor of Statutes: https://www.revisor.mn.gov/statutes/cite/317A.823
3. Minnesota Revisor of Statutes: https://www.revisor.mn.gov/statutes/cite/290.05
4. Minnesota Revisor of Statutes: https://www.revisor.mn.gov/statutes/cite/297A.70
5. Minnesota Department of Revenue: https://www.revenue.state.mn.us/application-nonprofit-exempt-status
6. Minnesota Department of Revenue: https://www.revenue.state.mn.us/guide/qualifying-nonprofit-exempt-status
7. Minnesota Department of Revenue: https://www.revenue.state.mn.us/guide/purchases-2
8. Minnesota Department of Revenue: https://www.revenue.state.mn.us/guide/fundraising-sales
9. Minnesota Revisor of Statutes: https://www.revisor.mn.gov/statutes/cite/309.52
10. Minnesota Revisor of Statutes: https://www.revisor.mn.gov/statutes/cite/309.515
11. Minnesota Revisor of Statutes: https://www.revisor.mn.gov/statutes/cite/309.53
12. Minnesota Revisor of Statutes: https://www.revisor.mn.gov/statutes/cite/349.12
13. Minnesota Revisor of Statutes: https://www.revisor.mn.gov/statutes/cite/349.166
14. Minnesota Revisor of Statutes: https://www.revisor.mn.gov/statutes/cite/349.173
15. State of Minnesota: https://mn.gov/gcb/start-here/conducting-gambling-on-a-limited-basis/exempt-permits-the-basics.jsp
16. State of Minnesota: https://mn.gov/gcb/start-here/new-to-this/excluded-raffles/
17. State of Minnesota: https://mn.gov/gcb/manual/conduct-games/raffles/conducting-a-raffle/
18. State of Minnesota: https://mn.gov/gcb/manual/organization-license/org-licenses-permits/qualifications-to-apply/
19. IRS: https://www.irs.gov/charities-non-profits/annual-electronic-filing-requirement-for-small-exempt-organizations-form-990-n-e-postcard