# Montana Booster Club Filing Requirements

> Montana booster club filings: $20 nonprofit articles, the April 15 annual report, no sales tax or charity registration, and raffle rules under MCA 23-5-413.

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

Montana is one of the lightest states for booster club paperwork. There is no statewide sales tax, no charitable solicitation registration, and no state application for income tax exemption. The one recurring state filing is the Secretary of State's annual report, due between January 1 and April 15. Raffles need no state license, and the statute expressly lets a nonprofit sell raffle tickets over the internet and accept credit cards. No Montana statute specific to booster clubs was identified.

## At a Glance

| Requirement | Agency | Form | Fee | Frequency |
|---|---|---|---|---|
| Incorporate as nonprofit | Secretary of State, Business Services | Articles of Incorporation (nonprofit), filed online | $20 | once |
| Annual/biennial report | Secretary of State | Annual Report | listed as waived if filed by April 15; $35 after | annual, January 1 to April 15 |
| State income/franchise tax exemption | Department of Revenue | None; exemption is by statute | none | automatic |
| Sales tax exemption on purchases | None | Not applicable | none | Montana has no general sales tax |
| Sales tax on fundraiser sales | None (local resort tax in a few communities) | Not applicable | none | not applicable |
| Charitable solicitation registration | None | Not required | none | not applicable |
| Raffle permit/registration | Department of Justice, Gambling Control Division (rules only) | No raffle license or permit | none | not applicable |

## Forming a Nonprofit Corporation in Montana

A booster club incorporates by filing Articles of Incorporation for a nonprofit corporation with the Secretary of State's Business Services Division, through the online business filing portal. The filing fee is $20. The articles must include the purpose and dissolution language the IRS requires for 501(c)(3) status (the federal tax exemption for charitable and educational organizations); see [How to Incorporate a Booster Club](https://boosterclub.org/start/incorporate/).

Every domestic nonprofit corporation files an annual report with the Secretary of State (MCA 35-2-904). The first report is due between January 1 and April 15 of the year after the year of incorporation, and each later report is due in the same window.

The Secretary of State's fee schedule lists the nonprofit annual report fee as waived when filed by April 15 and $35 when filed after April 15. Confirm current fee with the agency, since a waiver can be withdrawn. A corporation that stops filing loses good standing; reinstatement costs $10 plus $35 for each year of delinquent reports.

## State Tax Exemption

Montana exempts corporations "organized and operated exclusively for religious, charitable, scientific, or educational purposes" from corporate income tax by statute (MCA 15-31-102). The statute does not cite 501(c)(3) and does not require the club to apply for or prove the exemption. A booster club with an IRS determination letter (the letter confirming 501(c)(3) status) fits within it.

The exception is unrelated business income, meaning income from a regularly carried-on business not related to the club's exempt purpose. If the club owes more than $100 of federal unrelated business income tax, Montana taxes that income too, and the club must send the Department of Revenue a copy of its federal Form 990-T. See [Unrelated Business Income Tax for Booster Clubs](https://boosterclub.org/taxes/ubit/).

## Sales Tax

Montana has no general statewide sales tax. A booster club pays no state sales tax on supplies and collects none on spirit wear, concessions, or other fundraiser sales, so there is no exemption certificate to obtain and no seller's permit to hold.

A small number of resort communities and resort area districts levy a local resort tax on certain goods and services under MCA Title 7, chapter 6, part 15. A club holding a fundraiser in a resort community should ask the local government whether its sales are covered.

## Charitable Solicitation Registration

Montana has no charitable solicitation registration requirement. A booster club does not register with the Attorney General or the Secretary of State before asking for donations, and files no annual charity report with the state. A club that solicits donors in other states, including through an online donation page, should check those states' rules; see [Online Fundraising for Booster Clubs](https://boosterclub.org/fundraising/online-fundraising/).

## Raffles and Gaming

Raffles are legal in Montana when operated under MCA Title 23, chapter 5, part 4. The state's live bingo and keno permit (MCA 23-5-407) applies only to bingo and keno, so a booster club needs no license or permit to hold a raffle. The Department of Justice's Gambling Control Division may adopt rules on recordkeeping and fair selection of winners. Montana defines a nonprofit organization for gambling purposes to include one established to support scholastic or educational activities, which covers a booster club.

The rules in MCA 23-5-413:

1. **Prize value.** The value of a prize for an individual ticket may not exceed $5,000, but this cap does not apply to nonprofit organizations or public school districts.
2. **Own the prizes first.** The organization must own all prizes before selling any tickets. A club raffling a donated item should hold title or possession before tickets go on sale.
3. **Use of proceeds.** A nonprofit's raffle proceeds may be used only for charitable purposes or to pay for prizes, and may not be used for administrative costs.
4. **Online sales and cards.** Internet ticket sales are prohibited except for raffles sponsored by nonprofit organizations, and nonprofits may accept credit cards. A 501(c)(3) booster club may sell tickets online.

A 50/50 raffle is a raffle under Montana's definition. Because the prize in a 50/50 is half of the ticket money, the "own all prizes first" rule fits awkwardly; the club should confirm its 50/50 procedure with the Gambling Control Division.

**Bingo** is different: live bingo requires a Gambling Control Division permit. A 501(c)(3) club may qualify as an exempt charitable organization with a reduced fee and a limit of 60 days per year. Cards may cost no more than $1, and regular-session prizes may not exceed $800 per game.

## Annual Compliance Calendar for Montana

| Filing | Due date | Agency |
|---|---|---|
| Annual Report | January 1 to April 15 each year | Secretary of State |
| 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 |
| Copy of federal Form 990-T, only if federal unrelated business income tax exceeds $100 | With the club's Montana return; confirm due date with the agency | Department of Revenue |
| Raffle records | Kept for each raffle; no state filing | Gambling Control Division rules |

## Common Mistakes in Montana

- **Missing the April 15 annual report window.** The deadline overlaps spring sports. The fee jumps to $35 after April 15, and reinstatement costs $35 for every delinquent year.
- **Selling raffle tickets before owning the prize.** Clubs line up a donated prize by promise and start selling. The statute requires ownership first, and a raffle run outside the statute is illegal gambling.
- **Paying raffle expenses from raffle proceeds.** A nonprofit's raffle proceeds may go only to charitable purposes or prizes, so the treasurer pays printing and supplies from other funds.
- **Assuming no state filings means no federal filings.** Montana's light regime leads some clubs to skip the IRS too. Three missed Form 990-N filings in a row revoke 501(c)(3) status automatically.

## Checklist

### Forming

- [ ] File nonprofit Articles of Incorporation with the Secretary of State ($20)
- [ ] Obtain the IRS determination letter for 501(c)(3) status
- [ ] Record the annual report window (January 1 to April 15) on the club calendar (secretary)
- [ ] Adopt a raffle procedure covering prize ownership, records, and use of proceeds (board)

### Every Year

- [ ] Confirm the registered agent and officer list are current
- [ ] File the Secretary of State annual report (January 1 to April 15)
- [ ] Take title or possession of every raffle prize before selling tickets (raffle chair)
- [ ] Keep a ledger of raffle ticket receipts, prizes, and use of proceeds (treasurer)
- [ ] File Form 990-N, 990-EZ, or 990 (by the 15th day of the 5th month after fiscal year end)
- [ ] Send Montana a copy of Form 990-T if federal unrelated business income tax exceeds $100 (treasurer)

## Related Pages

- [Booster Club Filing Requirements by State](https://boosterclub.org/states/) compares Montana with every other state
- [Are Booster Club Raffles Legal](https://boosterclub.org/raffles/are-raffles-legal/) summarizes raffle law in each state
- [Online and Electronic Raffles](https://boosterclub.org/raffles/online-raffles/) explains why most states restrict what Montana allows
- [How to File Form 990-N for a Booster Club](https://boosterclub.org/taxes/form-990-n/) covers the federal filing every club owes
- [State Taxes for Booster Clubs](https://boosterclub.org/taxes/state-taxes/) compares income and sales tax treatment across states

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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. Montana Secretary of State: https://sosmt.gov/business/fees/
2. Montana Legislature: https://mca.legmt.gov/bills/mca/title_0350/chapter_0020/part_0090/section_0040/0350-0020-0090-0040.html
3. Montana Legislature: https://mca.legmt.gov/bills/mca/title_0150/chapter_0310/part_0010/section_0020/0150-0310-0010-0020.html
4. Montana Legislature: https://mca.legmt.gov/bills/mca/title_0070/chapter_0060/part_0150/sections_index.html
5. Montana Legislature: https://mca.legmt.gov/bills/mca/title_0230/chapter_0050/part_0040/sections_index.html
6. Montana Legislature: https://mca.legmt.gov/bills/mca/title_0230/chapter_0050/part_0040/section_0050/0230-0050-0040-0050.html
7. Montana Legislature: https://mca.legmt.gov/bills/mca/title_0230/chapter_0050/part_0040/section_0060/0230-0050-0040-0060.html
8. Montana Legislature: https://mca.legmt.gov/bills/mca/title_0230/chapter_0050/part_0040/section_0070/0230-0050-0040-0070.html
9. Montana Legislature: https://mca.legmt.gov/bills/mca/title_0230/chapter_0050/part_0040/section_0120/0230-0050-0040-0120.html
10. Montana Legislature: https://mca.legmt.gov/bills/mca/title_0230/chapter_0050/part_0040/section_0130/0230-0050-0040-0130.html
11. Montana Legislature: https://mca.legmt.gov/bills/mca/title_0230/chapter_0050/part_0010/section_0120/0230-0050-0010-0120.html
12. IRS: https://www.irs.gov/charities-non-profits/annual-electronic-filing-requirement-for-small-exempt-organizations-form-990-n-e-postcard