Requirement to start a Booster Club?

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How To Organize Nonprofit Organization For A Booster Club?

Basic Features of a Booster Club:

A booster club is normally created to support small events for the schools such as sports.
Regardless, collecting a small or large amount in a donation to serve the society , a nonprofit entity has to be registered in the state where you are physically located to serve the community;
Otherwise, a booster club will be treated as a profit entity and the donors cannot include their donations on the income tax returns for a tax deduction or credit.
It runs under the Internal Revenue Service Rules and Regulation.

Requirement to start a nonprofit for a Booster Club:

Prepare a nonprofit charter to file with the secretary of state of your state which contains the intention of the organization.
The purpose of the booster club must be "Served" not "Earned" to list it as a nonprofit entity. The serving entities form a nonprofit corporation, whereas the earning entities register a profit corporation.
Include, all officers and directors' names in the charter.
Mention principal place of business and the obligations of each director and officers in nonprofit organization for your booster club.
A booster club is classified as a non religious organization.
Get an EIN for your booster club which helps you to open a bank account and filing yearly non profit returns with the state and Internal Revenue Service.

Get Federal Exemption For A Booster Club:

501 (c) (3) application is filed with the Internal Revenue Service to classify a booster club as a nonprofit entity to collect contribution to run the organization.

Where to search to find out if the booster club is registered with the Internal Revenue Service as a Non Profit organization before making a contribution?

It is searched on the Internal Revenue Service website.

Can A Nonprofit register as an LLC?

In most states, a nonprofit organization has separate rules and regulations and cannot be registered as an LLC or a regular domestic corporation.

Cindy wrote on : Wed Feb 20th,2013 Back to Article