How Booster Clubs File Taxes?

Anyone who’s volunteered for a booster club knows the work is rewarding, but it’s not always easy. Booster club volunteers juggle a wide range of responsibilities, including making sure the group fulfills its tax filing requirements. 

If you’ve stepped into the role of volunteer treasurer for a booster club, you may have questions about filing your group’s taxes. You’ve come to the right place. In this guide, we’ll walk you through what you need to know, including whether your booster club is required to file taxes, which forms to use, and what steps to take to make the process as simple as possible. 

Are booster clubs required to file taxes?

Booster clubs are typically focused on supporting a specific school program, such as an athletic team, arts program, or academic club. Because they work so closely with schools, it’s easy to assume the school handles the club’s tax filing responsibilities. But in most cases, that’s not true. 

Booster clubs operate independently from schools. That means these groups are responsible for handling their own tax filing obligations. 

Booster clubs that are recognized as tax exempt organizations don’t have to pay federal income taxes, but they’re generally still required to file an annual tax return with the IRS. This filing helps the IRS confirm the club is still operating for its stated purpose and continuing to meet nonprofit requirements. 

Why does filing taxes matter for booster clubs?

Booster clubs juggle a lot, so it’s easy to see how filing taxes could fall on the back burner. But meeting tax filing obligations is essential for booster clubs, so it’s important to make it a priority.

For starters, filing your taxes annually is an important way to protect your club’s tax exempt status and stay in good standing with the IRS. 

It’s also an important way to support transparency, since tax filings for tax exempt organizations are public record. Schools, coaches, donors, and sponsors may consult these records to check whether your booster club is operating independently and appropriately.

In addition, filing your club’s taxes each year helps ensure continuity. Booster club leadership changes as students graduate or move on to other activities. Staying current makes transitions smoother and prevents compliance issues down the road. 

What tax forms do booster clubs need to use? 

Most booster clubs are required to file a version of IRS Form 990 each year. Form 990 is an informational return that reports a nonprofit’s finances, activities, and leadership from the prior tax year.

There are several versions of Form 990, and the one your booster club must file depends on its gross receipts and total assets. 

Form 990-N

Many booster clubs are eligible to file Form 990-N, which is also known as the e-Postcard. A booster club can use this version if they normally have $50,000 or less in annual gross receipts. It’s the simplest version of Form 990 and can be filed online.

Form 990-EZ

This version is typically used by tax exempt booster clubs with more than $50,000 but less than $200,000 in annual gross receipts and total assets less than $500,000. It’s more detailed than Form 990-N, but still simpler than the full Form 990. It can also be filed online.

Form 990

Some larger or more complex booster clubs may be required to file the full Form 990. But this isn’t as common as the other two versions.

How do booster clubs file their taxes? 

Filing taxes might not be one of the most glamorous responsibilities of a booster club treasurer. But it’s an important one.

The good news is that filing your booster club’s taxes is a fairly straightforward process. Here are a few key steps that’ll make the process easier.

Step 1: Keep your finances organized throughout the year 

All too often, tax time becomes a stressful scramble because booster clubs aren’t sure where to find the information they need to file. This is especially true when there’s a transition in leadership.

Set yourself (and your successors) up for success by tracking your club’s basic financial activity throughout the year. Keeping this information organized and centralized in one place will make it easier to complete your tax filing. 

Step 2: Figure out which tax form your booster club must file 

Most booster clubs are required to file a version of IRS Form 990 each year. Your annual gross receipts and total assets will determine which version you need to use. 

Review your financial records to confirm how much your booster club raised during the previous year. Focus on the total amount your club brought in, not just the profit for specific events. 

Remember: just because you filed a certain version last year doesn’t mean it’s the right version for this year. A successful year of concession sales, sponsorships, or events can push a booster club into a higher filing category than expected. 

Step 3: Assign responsibility early on

Board members might assume someone else is handling taxes. This is especially likely in booster clubs, where leadership changes frequently as students graduate or move on to other activities. 

Be sure to clearly identify who will handle your booster club’s tax filing. In many cases, the volunteer treasurer can manage the filing. For clubs with more complex finances, it may be a coordinated effort with other officers or outside accounting support.

Step 4: Determine your deadline

The deadline for filing taxes is based on your club’s fiscal year, not the school calendar. In most cases, Form 990 is due by the 15th day of the fifth month after the end of your fiscal year. So if your fiscal year ends on June 30, your deadline is November 15.

Figure out your tax filing deadline so you can make a plan to meet it. It’ll help eliminate last minute stress.

Step 5: Gather the required information

Before you sit down to file your taxes, take time to gather the information you’ll need. If you’ve been keeping your records organized throughout the year, this should be fairly easy.

The information you’ll need to file your booster club’s taxes varies based on the version of Form 990 you’re required to use. However, here’s a list of some of the information you should have at the ready:

• Legal name and EIN
• Fiscal year start and end dates
• Gross receipts and basic financial totals
• Names and titles of officers

Step 6: Complete and file your booster club’s tax return

Once you know which form you’re required to file and have gathered the information you need, you can complete your tax return. 

IRS Form 990-N is only available online. Except in rare circumstances, Form 990-EZ and Form 990 must be filed electronically, too. 

If your booster club is eligible to file Form 990-N, 501c3 Center, an IRS-authorized e-file provider, can help you complete the process quickly and easily, without needing to create an IRS account. 

What will happen if a booster club doesn’t file its taxes? 

There’s no immediate penalty for missing a single filing. But if you don’t file for three consecutive years, your booster club’s tax exempt status will automatically be revoked. 

Losing your tax exempt status carries major consequences. It can make it more difficult to fundraise, complicate your relationships with your school or the district, and tarnish trust with existing and potential donors and sponsors. 

While the major consequences come at year three, failing to file for even a single year can cause complications. If a leadership transition happens in your club, new officers may unknowingly inherit compliance issues, which make future filings more difficult and time consuming.  

Filing taxes for your booster club may seem like just another item on a never-ending to do list. But staying current is critical to protecting your booster club and avoiding unnecessary setbacks. 

File your booster club’s taxes the easy way

Filing taxes each year is an important way to protect your booster club’s tax exempt status and stay in good standing with the IRS. But for busy volunteers, managing tax requirements can feel overwhelming on top of everything else involved with running a successful booster club.

The good news is that booster clubs don’t have to figure it out on their own.

501c3 Center makes it easy to file Form 990-N in just a few minutes. Just answer a few questions, and we’ll prepare your 990-N accurately and submit it on time. With your annual tax filing finished, you can get back to supporting the students and programs your club serves.  

Find out more and file your booster club’s taxes with 501c3 Center today.