# North Dakota Booster Club Filing Requirements

> North Dakota booster club rules: $40 nonprofit articles, $10 annual report due February 1, charity registration by September 1, and local raffle permits.

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

North Dakota's booster club rules are short but date-driven: a $10 nonprofit annual report by February 1, a $10 charity report by September 1, and sales tax exemption for most fundraising unless the club operates like a retailer. Raffles can run under a city or county permit, avoiding the two-year wait for a state gaming license.

## At a Glance

| Requirement | Agency | Form | Fee | Frequency |
|---|---|---|---|---|
| Incorporate as nonprofit | Secretary of State | Articles of Incorporation (Nonprofit) | $40 | once |
| Annual report | Secretary of State | Nonprofit annual report | $10 ($5 late fee) | every year, by February 1 |
| State income tax exemption | Office of State Tax Commissioner | None | $0 | automatic |
| Sales tax exemption on purchases | Office of State Tax Commissioner | None available generally | n/a | n/a |
| Sales tax on fundraiser sales | Office of State Tax Commissioner | None if exempt activity | $0 | n/a |
| Charitable solicitation registration | Secretary of State | Registration statement, then annual report | $25, then $10 | annual, by September 1 |
| Raffle permit/registration | City or county (local permit); Attorney General (license) | Local permit or state license | Up to $25 (permit); $175 (license) | yearly |

## Forming a Nonprofit Corporation in North Dakota

A booster club incorporates under the North Dakota Nonprofit Corporation Act (N.D.C.C. chapter 10-33) by filing Articles of Incorporation with the Secretary of State. The fee is $40 (N.D.C.C. 10-33-140). The articles name a registered agent and need 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](https://boosterclub.org/start/incorporate/).

Every nonprofit corporation files an annual report with the Secretary of State **before February 2** each year (in practice, by February 1). The first report is due by February 1 of the year after the calendar year of incorporation; a club incorporated in September 2026 files its first report by February 1, 2027. The fee is $10, and a $5 late fee applies after the deadline. A corporation that has not filed within one year after the deadline is dissolved by operation of law; reinstatement costs $40 more (N.D.C.C. 10-33-139).

## State Tax Exemption

Federal exemption carries over automatically. Under N.D.C.C. 57-38-09, an organization exempt from federal income tax is exempt from North Dakota income tax for each year it meets the federal requirements. Unrelated business taxable income is taxed in North Dakota on the same basis as federally.

## Sales Tax

**Purchases.** North Dakota law contains no general sales tax exemption for purchases by nonprofit organizations; the exemptions in N.D.C.C. 57-39.2-04 are limited to specific buyers and items. One narrow exemption matters for boosters: tangible personal property a charitable organization buys to award as a raffle prize is exempt when the winner will owe use tax on receiving it.

**Sales.** Gross receipts from educational or charitable activities are exempt when the entire net receipts are spent for educational or charitable purposes (N.D.C.C. 57-39.2-04(4)(b)). The exemption does **not** apply:

1. To taxable sales over $10,000 at a single event held in a publicly owned facility for which the organization did not pay fair market rent. A concession stand in a school gym that is not rented at market rates can cross this line during a large tournament.
2. When the seller competes with retailers by keeping inventory, selling regularly from a permanent or seasonal location, or soliciting sales through its own website. A year-round spirit wear store or online shop is taxable.

## Charitable Solicitation Registration

North Dakota requires a charitable organization to file a registration statement with the Secretary of State **before** soliciting contributions (N.D.C.C. 50-22-02). The registration fee is $25, and the statement includes a financial statement for the most recent twelve months. Every registered organization then files an annual report by **September 1** with a $10 fee (N.D.C.C. 50-22-04). The Secretary of State may extend the deadline on written request, but never past December 1. Registration lapses immediately if the annual report is not filed, and soliciting without registration is a misdemeanor.

There is no dollar threshold, and online solicitation counts. The statute does exclude some organizations from the definition of "charitable organization," including elementary and secondary schools themselves and an organization that **uses only volunteer, unpaid fundraisers** and solicits for a political subdivision or a civic or community project, where contributions are used solely for that project. A booster club raising money for a public school district's program with volunteers only may fit that exclusion; a club that is unsure should register, since the cost is $25 plus $10 a year.

## Raffles and Gaming

Charitable gaming is governed by N.D.C.C. chapter 53-06.1 and administered by the Attorney General, with local governments issuing permits. A booster club has two routes:

| Route | Who qualifies | Limits | Fee |
|---|---|---|---|
| Local permit from the city or county | An organization the governing body recognizes as "public-spirited" | Raffles, bingo, or sports pools; top prize up to $15,000 and total prizes up to $50,000 per year | Up to $25 per permit |
| State license from the Attorney General | An "eligible organization": incorporated nonprofit, actively fulfilling its purpose in North Dakota for the two preceding years | Higher limits; quarterly gaming tax returns | $175 per city or county site, applied for annually before July 1 |

The two-year requirement applies to licenses, not local permits, which run July 1 to June 30 or by calendar year.

Raffle rules under N.D.C.C. 53-06.1-10.1:

- Prizes may be cash or merchandise but not real estate. No single cash prize may exceed $25,000, and total cash prizes may not exceed $25,000 in one day.
- An electronic 50/50 must sell tickets and hold the drawing on site on the day of the event; it may not be run online.
- A **licensed** organization may sell raffle tickets online and take card payments, limited to $500 per person per day and $1,500 per week by credit card, after verifying the buyer is 18 or older and physically in North Dakota.

## Annual Compliance Calendar for North Dakota

| Filing | Due date | Agency |
|---|---|---|
| Nonprofit annual report ($10) | February 1 | Secretary of State |
| Form 990-N (federal) | 15th day of 5th month after year end: May 15 (calendar year), November 15 (June 30 year) | IRS |
| Gaming license renewal (licensed clubs) | Before July 1 | Attorney General |
| Local raffle permit | Before the permit year (July 1 or January 1) | City or county |
| Charitable organization annual report ($10) | September 1 | Secretary of State |

## Common Mistakes in North Dakota

- **Missing February 1.** One missed year leads to involuntary dissolution.
- **Letting the charity registration lapse.** Registration ends the day the September 1 report is late.
- **Opening an online store.** Website sales lose the charitable activity exemption.
- **Running an online 50/50.** Electronic 50/50 tickets must be sold on site.
- **Applying for a state license too soon.** A new club uses a local permit until it has two years of activity.

## Checklist

### Forming

- [ ] File Articles of Incorporation with the Secretary of State ($40)
- [ ] Obtain an EIN (Employer Identification Number) and apply for federal 501(c)(3) status
- [ ] Register as a charitable organization ($25) before soliciting, or document why the club is excluded
- [ ] Ask the city or county to recognize the club as public-spirited before planning a raffle
- [ ] Decide whether any planned sales require a sales tax permit

### Every Year

- [ ] File the $10 nonprofit annual report (by February 1)
- [ ] File Form 990-N or the applicable Form 990 (by the 15th day of the 5th month after year end)
- [ ] Renew the local raffle permit before the permit year begins
- [ ] File the $10 charitable organization annual report (by September 1)
- [ ] Track event sales in unrented public facilities against the $10,000 limit (treasurer)

## Related Pages

- [Filing Requirements by State](https://boosterclub.org/states/) compare other states
- [Sales Tax for Booster Clubs](https://boosterclub.org/taxes/sales-tax/) fundraiser sales
- [Online and Electronic Raffles](https://boosterclub.org/raffles/online-raffles/) platform rules
- [Booster Club Compliance Calendar](https://boosterclub.org/taxes/compliance-calendar/) the full year

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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. North Dakota Legislature: https://www.ndlegis.gov/cencode/t10c33.pdf
2. North Dakota Legislature: https://www.ndlegis.gov/cencode/t57c38.pdf
3. North Dakota Legislature: https://www.ndlegis.gov/cencode/t57c39-2.pdf
4. North Dakota Legislature: https://www.ndlegis.gov/cencode/t50c22.pdf
5. North Dakota Legislature: https://www.ndlegis.gov/cencode/t53c06-1.pdf
6. IRS: https://www.irs.gov/charities-non-profits/annual-electronic-filing-requirement-for-small-exempt-organizations-form-990-n-e-postcard