New York Booster Club Filing Requirements

Forming a Nonprofit Corporation in New York

A booster club incorporates by filing a Certificate of Incorporation under Section 402 of the Not-for-Profit Corporation Law (N-PCL) with the Department of State, Division of Corporations. The filing fee is $75 (N-PCL 104-A). The certificate designates the Secretary of State as agent for service of process and needs IRS-required purpose and dissolution language for 501(c)(3) status (federal tax exemption for charitable and educational organizations). See How to Incorporate a Booster Club.

New York does not require not-for-profit corporations to file an annual or biennial report with the Department of State; the biennial statement applies to business corporations.

State Tax Exemption

Federal exemption does not carry over automatically for franchise tax purposes. Form CT-247 instructions state that a not-for-profit corporation “must file Form CT-247 to apply for exemption” from the corporation franchise tax. The club attaches its IRS determination letter and faxes or mails the form to the Department of Taxation and Finance. There is no fee.

Sales Tax

Purchases. A 501(c)(3) does not get sales tax exemption automatically. The club files Form ST-119.2, Application for an Exempt Organization Certificate, with its IRS determination letterDetermination letterThe IRS letter recognizing the club’s federal tax exemption under 501(c)(3). The club keeps it permanently and shows it to banks, donors, grantors, and the school district.All terms. Once approved, the department issues Form ST-119 with a six-digit exemption number, and the treasurer gives vendors a completed Form ST-119.1 for each purchase. Purchases made with an officer’s personal funds for personal use are taxable. The EIN (Employer Identification NumberEINEmployer Identification Number: the nine-digit federal tax identification number the IRS assigns to the club. The club needs it to open a bank account, apply for 501(c)(3) status, and file its annual return.All terms) is not a sales tax exemption number.

Sales. Publication 843 sets the rules for exempt organizations’ own sales:

1. Order-form and door-to-door fundraisers are not taxable when the club buys the merchandise and resells it. When the club only takes orders and the vendor ships directly to buyers, the sale is taxable and the club collects tax for the vendor.
2. Shops and stores, including a temporary booth at a fair alongside taxable vendors, must collect tax.
3. Food and drink is taxable when sold from a concession stand operated with regularity, frequency, and continuity. A girls’ softball league stand open daily all season is taxable; two dinners a year are not.
4. Admissions charged by an exempt organization are generally exempt. Athletic game admissions are the exception: they are taxable unless the proceeds exclusively benefit an elementary or secondary school, or the game is between two such schools and benefits exempt organizations.

Charitable Solicitation Registration

New York requires registration with the Attorney General’s Charities Bureau before soliciting contributions (Executive Law 172). The registration statement (CHAR410) carries a $25 fee. Most incorporated booster clubs register as “dual” filers, covering both Article 7-A of the Executive Law (solicitation) and the Estates, Powers and Trusts Law (EPTL, which governs charities holding property in New York).

The annual CHAR500 is due by the 15th day of the 5th month after the fiscal year ends (Executive Law 172-b): May 15 for a calendar year, November 15 for a June 30 fiscal yearFiscal yearThe club’s 12-month accounting year, set in the bylaws. Many booster clubs use July 1 through June 30 to match the school year, and the club’s filing deadlines count from the day it ends.All terms. Fees and attachments depend on size:

The EPTL fee is added on top, based on net worth: $25 under $50,000, $50 from $50,000 to $250,000. An organization with gross receipts under $25,000 and assets never above $25,000 owes no EPTL fee.

Exemptions under Executive Law 172-a include organizations receiving less than $25,000 in contributions in a fiscal year that use no professional fundraiser. A booster club relies on this $25,000 exemption if it qualifies. Exemption is requested from the Charities Bureau, not assumed. Online donations from New York residents count toward the threshold.

Raffles and Gaming

Raffles are legal for an “authorized organization,” defined in General Municipal Law 186 as a bona fide charitable, educational, or service organization operating without profit. To obtain a license, the organization must have served its lawful purposes for three years before applying. The Gaming Commission sorts raffles into three tiers by net proceeds:

A 50/50 drawing is a raffle and counts toward the same totals. Online ticket sales are allowed only after the Commission approves an Internet Raffle Application. Bingo, bell jars, and casino nights require separate games of chance licensing.

Annual Compliance Calendar for New York