Rhode Island Booster Club Filing Requirements

Forming a Nonprofit Corporation in Rhode Island

A booster club incorporates under the Rhode Island Nonprofit Corporation Act (R.I. Gen. Laws chapter 7-6) by filing Articles of Incorporation with the Department of State, online or on paper. The fee is $35. The registered agent must be a Rhode Island resident or qualified entity with a Rhode Island street address; post office boxes and virtual addresses are not accepted. 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.

Rhode Island requires at least three directors in addition to the officers (president, vice president, secretary, and treasurer). Officers may serve as directors, but the president and secretary must be different people.

The annual report (Form 631) is due between February 1 and May 1 each year, starting the calendar year after the club registers (R.I. Gen. Laws 7-6-91). The fee is $20, plus a small fee to file online, and a $25 late penalty applies on June 1. The report lists all directors and officers. A corporation that falls out of good standing cannot file its annual report online and must be restored first.

State Tax Exemption

No application is needed. The Department of State advises that a registered nonprofit is automatically exempt from Rhode Island income tax and that most 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 owe no state income tax. A club with unrelated business income over $1,000 files IRS Form 990-T and Rhode Island Form RI-1120C, and the state minimum corporate tax ($400) may apply.

Sales Tax

Purchases. R.I. Gen. Laws 44-18-30(5) exempts purchases by organizations operated exclusively for charitable purposes and by “nonprofit, organized sporting leagues and associations and bands for boys and girls under the age of nineteen.” A booster club with 501(c)(3) status applies to the Division of Taxation on Form EXO-SUE. The application fee is $25, and the exemption certificateSales tax exemption certificateA state form a qualifying organization gives a seller to buy without paying sales tax. Many states do not exempt nonprofit purchases, so whether a club can use one varies by state.All terms expires four years from the date of issuance, so the treasurer must calendar the renewal.

Sales. Rhode Island taxes sales by nonprofits unless a specific exemption applies. Two matter for booster clubs:

1. Items of $20 or less. Section 44-18-30(31) exempts sales of items priced at not more than $20 each by nonprofit Rhode Island charitable organizations for the youth activities they are formed to sponsor and support, and by accredited elementary and secondary schools for school purposes or organized student activities. Concession snacks, programs, and most small spirit items fit under the limit.
2. School meals. Meals served to students and teachers by schools, school districts, and student organizations are exempt under section 44-18-30(3). Booster clubs are not named, so a club selling meals should not rely on it.

Items priced above $20, such as hoodies or stadium seats, are taxable. A club selling them obtains a sales permit from the Division of Taxation and collects tax.

Charitable Solicitation Registration

A charitable organization that solicits and receives more than $25,000 in contributions in its fiscal year, or that uses a professional fundraiser, must register with DBR’s Securities and Charities Division. Registration is annual and the fee is $90. The statute (R.I. Gen. Laws chapter 5-53.1) lists exempt entities, and a club under $25,000 that uses only volunteers does not register. Confirm the renewal date and financial statement requirements with DBR when registering, since they depend on the club’s 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 and revenue. Online donations from Rhode Island residents count toward the threshold.

Raffles and Gaming

Raffles are legal for charitable organizations in Rhode Island, but two layers apply:

1. State registration. R.I. Gen. Laws 11-19-31 prohibits a charitable organization from conducting a “permitted game of chance” (bingo, a raffle, or a lottery) unless it files a registration statement with the Division of State Police. The registration is renewed before June 1 each year. Game expenses may not exceed 25 percent of gross receipts unless the State Police allow more.
2. Local permit. For each raffle, the club obtains a raffle application from the local police department or the State Police Charitable Gaming Unit and submits it with a $5 check or money order to the chief of police in the city or town where the drawing will be held. In Providence, the application goes first to the City Hall Licensing Department. Processing can take up to 60 days.

“Charitable organization” is defined broadly to include educational, civic, and philanthropic groups, so a booster club qualifies. The statute sets no minimum years in existence. A 50/50 drawing is a raffle and follows the same process. Rhode Island’s published guidance does not address online ticket sales; confirm with the State Police before selling online. Bingo requires a separate registration with the State Police Charitable GamingCharitable gamingRaffles, bingo, and other games of chance that state law allows a nonprofit to run to raise money, often under a state or local license with limits on prizes and on how proceeds are used. Whether a booster club may hold them varies by state.All terms Unit.

Annual Compliance Calendar for Rhode Island