Tennessee Booster Club Filing Requirements

Forming a Nonprofit Corporation in Tennessee

The board files a Charter, Nonprofit Corporation (Form SS-4418) with the Secretary of State’s Division of Business Services, online or by mail. The fee is $100, but a “school support organization” (a booster club, parent group, or similar nongovernmental group whose primary purpose is supporting a school or its activities) selects the school organization exemption on the form and pays nothing under Tennessee Code Annotated (T.C.A.) § 49-2-611.

The charter names a registered agent (the person who accepts legal papers) at a Tennessee street address and the month the fiscal year (the club’s 12-month accounting year) ends. It also needs the purpose and dissolution language the Internal Revenue Service (IRS) requires for 501(c)(3) status (the federal tax exemption for charities); see How to Incorporate a Booster Club.

T.C.A. § 48-66-203 requires an annual report by the first day of the fourth month after 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 end: April 1 for a December 31 year end, October 1 for June 30. The fee is $20 (plus $20 if the registered agentRegistered agentThe person or company designated to receive lawsuits and official state notices for the corporation at a street address in the state. Some states call it a resident agent or statutory agent.All terms changes). Missing it can lead to administrative dissolution; reinstatement requires a Department of Revenue tax clearance.

The School Support Organization Law

Under T.C.A. § 49-2-604, before collecting money the club gives the director of schools (or a designee) proof of nonprofit status, its goals, and each officer’s contact information. It resubmits these annually on a date the district sets and files a statement of total revenues and disbursements before the school year ends.

A school employee may not be the club’s treasurer, bookkeeper, or check signer. The club keeps financial records, minutes, charter, and bylaws for at least four years, open to school officials and state auditors.

State Tax Exemption

The Department of Revenue states that nonprofits are generally exempt from franchise and excise tax, with status following federal exemption, so a 501(c)(3) club files no application. Unrelated business taxable income (UBTI, income from a regular business unrelated to the club’s purpose) is the exception and requires registering for the tax.

Sales Tax

A 501(c)(3) club may buy goods tax-free for its own use only after the Department issues a Certificate of Exemption. The treasurer files the Application for Exempt Organizations or Institutions Sales and Use Tax Exemption by mail or email with the required documents. It covers only purchases made directly by the club, not a parent’s purchase reimbursed later.

Fundraiser sales follow a school-specific rule. The Department’s nonprofit tax manual says K-12 schools and school support groups, naming booster clubs, pay sales tax to vendors on items bought for resale, and the resale is not taxed. The club does not use its certificate for concession or spirit wear inventory and collects no tax at the table.

Charitable Solicitation Registration

T.C.A. § 48-101-502(b) exempts educational institutions from registration, and a 2016 amendment (Public Chapter 928) includes parent organizations that support a school’s operations or extracurricular activities, where the school is accredited or approved by a board of education. A booster club supporting such a school does not register.

A club outside that definition is exempt at $50,000 or less in public contributions but files a free Exemption Request annually. Above $50,000 it registers ($50) and renews by the last day of the sixth month after 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 end ($0 to $240). Audits apply only to very large charities (over $1,000,000 in revenue).

Raffles and Gaming

Only a 501(c)(3) or 501(c)(19) organization approved by a two-thirds vote of the General Assembly may hold a raffle, and only at one annual gaming event. Permitted games are raffles, reverse raffles, cakewalks, cake wheels, and bingo, so a carnival cakewalk also needs approval. The club needs three years of continuous operation in Tennessee, shown by three years of Form 990 or 990-N filings. The gaming rules define in-state “physical presence” as a tangible office, not a post office box, so a club run from the school confirms eligibility with the Division.

1. Apply online between July 1 and January 31 ($50 fee).
2. The Division sends qualifying applications to the legislature by March 1.
3. Notify the Tennessee Bureau of Investigation and the district attorney general.
4. Sell tickets no earlier than 120 days before the event. No one under 18 may sell or buy tickets, and officers and their households may not buy.
5. Within 90 days after the event, file the financial report and pay $100 to $550 based on gross revenue. At least 25 percent of gross proceeds must go to the charitable purpose.

A 50/50 drawing is a raffle and must be part of the approved event. The rules do not address online ticket sales, so the club confirms with the Division first.

Annual Compliance Calendar for Tennessee