Ohio Booster Club Filing Requirements

Forming a Nonprofit Corporation in Ohio

A booster club incorporates under the Ohio Nonprofit Corporation Law (Revised Code chapter 1702) by filing Articles of Incorporation for a nonprofit corporationNonprofit corporationA legal entity created by filing articles of incorporation with the state, separate from the parents who run it. It can open a bank account, sign contracts, and apply for 501(c)(3) status.All terms (Form 532B) with the Secretary of State, along with the appointment of a statutory agent. The filing fee has been $99; confirm current fee with the agency. The articles 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.

Ohio has no annual report for nonprofit corporations. Instead, Revised Code 1702.59 requires a statement of continued existence within each five years after incorporation or the club’s last filing with the Secretary of State. The fee is $25 (Revised Code 111.16). If it is not filed, the Secretary of State cancels the articles; reinstatement is available within two years.

State Tax Exemption

Ohio has no corporate income or franchise tax for a booster club to be exempt from. The state’s commercial activity tax (CAT) lists nonprofit organizations as excluded persons (Revised Code 5751.01(E)(8)). No application is needed.

Sales Tax

Purchases. Revised Code 5739.02(B)(12) exempts sales to 501(c)(3) organizations and to nonprofits operated exclusively for charitable purposes, and the statute names “a … booster group, or similar organization primarily engaged in the promotion and support of the curricular or extracurricular activities of a primary or secondary school.” Ohio does not issue exemption numbers to nonprofits. The treasurer gives each vendor a completed exemption certificate citing the (B)(12) exemption and keeps a copy. The exemption does not cover items used in carrying on a trade or business, and it does not apply when a parent pays personally.

Sales. Revised Code 5739.02(B)(9)(a) exempts sales by 501(c)(3) organizations and churches on no more than six days per calendar year. Division (B)(9)(b) removes that limit for “a … booster group, or similar organization that raises money to support or fund curricular or extracurricular activities of a primary or secondary school,” and for student clubs. In practice, a booster club’s concession stand, spirit wear, and product sales are exempt regardless of how many days they run. A club not primarily supporting a school (a community youth league, for example) keeps the six-day limit.

Charitable Solicitation Registration

Ohio’s charitable solicitation law (Revised Code 1716.02) requires charities to register with the Attorney General before soliciting, with fees from $0 (under $5,000 in contributions) to $200 ($50,000 or more). Revised Code 1716.03(F) exempts “any booster club that is organized and operated in conjunction with and for the benefit of students of public primary or secondary schools.” A booster club supporting a private school does not fit (F) but may qualify for the general small-organization exemption under 1716.03(G): no more than $25,000 in gross revenue and no paid solicitors.

The solicitation exemption does not end the club’s obligations to the Attorney General. Under Revised Code 109.23, a nonprofit corporationNonprofit corporationA legal entity created by filing articles of incorporation with the state, separate from the parents who run it. It can open a bank account, sign contracts, and apply for 501(c)(3) status.All terms holding property for charitable purposes can be a charitable trust, and 109.26 requires every charitable trust established or active in Ohio to register with the Attorney General within six months after it is created or receives assets. The annual charitable trust report (Revised Code 109.31) is due by the 15th day of the 5th month after the club’s taxable year ends, and a complete copy of the club’s federal Form 990 or 990-EZ may be filed in place of the state form. Clubs with gross receipts and year-end assets both under $25,000 are not required to file the annual report.

Raffles and Gaming

Revised Code 2915.092 allows an organization exempt under 501(c)(3), and a school district, to conduct a raffle “to raise money for the person or entity” without a bingo license, as long as the raffle is not for profit (no net proceeds go to private individuals). The statute sets no limit on the number of raffles or prize value for 501(c)(3) organizations. Organizations under other 501(c) subsections, such as (c)(4) or (c)(7), must give at least 50 percent of net raffle profit to charitable purposes. Conducting a raffle outside these rules is a first-degree misdemeanor.

Ohio defines a raffle as a form of bingo in which prizes go to purchasers of raffle tickets, with winners drawn from ticket stubs in a receptacle. A 50/50 drawing fits that definition. The statute does not address online ticket sales or electronic drawings; confirm with counsel before selling online. Bingo itself requires a license from the Attorney General, available only to a charitable organization that has existed continuously in Ohio for two years.

Annual Compliance Calendar for Ohio