Pennsylvania Booster Club Filing Requirements

Forming a Nonprofit Corporation in Pennsylvania

A booster club incorporates under the 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 Law by filing Articles of Incorporation (Form DSCB:15-5306) with the Department of State. The fee is $125. 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.

Act 122 of 2022 replaced the old decennial report with an annual report for most entities, beginning in 2025. Nonprofit corporations file between January 1 and June 30 each year, and the fee for nonprofits is $0. Starting with reports due in 2027, a corporation that does not file is subject to administrative dissolution six months after the due date. Reinstatement is possible, with a reinstatement fee and current report information.

State Tax Exemption

Pennsylvania does not require a booster club to apply for income tax exemption; its corporate net income tax is not imposed on nonprofit corporationsNonprofit 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. A club with unrelated business income should confirm its filing obligations with the Department of Revenue.

Sales Tax

Purchases. Pennsylvania exempts purchases only by organizations the Department of Revenue recognizes as institutions of purely public charity. Those organizations receive an exemption number beginning with 75 and give vendors a completed exemption certificate (REV-1220). Qualifying requires an application to the Department of Revenue and meeting the state’s multi-part purely public charity test, which is stricter than federal 501(c)(3) status. Without the 75-number, a booster club pays sales tax on taxable purchases.

Sales. Every entity making taxable sales needs a sales tax license (REV-717). Pennsylvania has no general exemption for fundraiser sales by charities, but many common booster items are not taxable in the first place:

• Clothing is generally nontaxable, so most spirit wear is exempt. Sporting goods and clothing normally worn only when playing sports are taxable.
• Prepared food and soft drinks sold from an eating establishment, such as a concession stand, are generally taxable unless a specific statutory exclusion applies. Confirm with the Department of Revenue before treating a concession stand as exempt.

Charitable Solicitation Registration

The Solicitation of Funds for Charitable Purposes Act (10 P.S. 162.1 et seq.) requires organizations soliciting Pennsylvanians to register with the Bureau of Corporations and Charitable Organizations on Form BCO-10, filed online. An organization that does not pay anyone to solicit must register within 30 days of receiving more than $25,000 in gross contributions. The state’s disclosure form (BCO-23) counts gross receipts from special events as contributions, so a gala or auction can push a club over the line.

Renewal is due by the 15th day of the 11th month after the fiscal year ends: November 15 for a calendar-year club, May 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. Late filings cost $25 per month.

The Bureau’s exclusions include organizations with $25,000 or less in gross contributions that pay no solicitors, and educational institutions along with “auxiliary associations, foundations, and support groups that are directly responsible to educational institutions.” An independent booster club is usually not directly responsible to the school, so it relies on the $25,000 exclusion or registers.

Raffles and Gaming

Raffles and 50/50 drawings50/50 raffleA raffle in which the winner receives half of the ticket sales and the club keeps the other half, usually sold and drawn during one game or event. It is legally a raffle with a cash prize, so state raffle law applies.All terms are small games of chance under the Local Option Small Games of Chance Act, and a booster club needs a license from its county treasurer to run them. Key requirements from the Department of Revenue’s application (REV-1752):

1. The club must be a nonprofit eligible organization (charitable, civic and service, and similar types) with its IRS exemption letter or other proof of nonprofit charitable status.
2. The club must document that it has been fulfilling its purpose for one year before applying.
3. The license costs $125 for the license term; a monthly license for 30 consecutive days costs $25.
4. Games are held on a licensed premises the club owns, leases in writing, or uses with another licensee’s consent, and no one under 18 may play.

Small games of chance are allowed only in municipalities that approved them by referendum. Prize limits apply per prize and per week, with higher limits under a special raffle permit. The regulations in 61 Pa. Code chapter 901 predate increases made by Acts 90 and 92 of 2013, so confirm current limits with the county treasurer. Pennsylvania’s published guidance does not authorize online ticket sales; confirm with the county before selling online.

Annual Compliance Calendar for Pennsylvania