Too often parents are unaware of the legal and organizational requirements for school booster clubs
Windermere, FL (Vocus) September 22, 2010
It’s that time of year again when school booster clubs start their gift wrap and candy sales, car washes and auctions. Unfortunately, many of these activities are started incorrectly, with booster clubs unwittingly using the school’s federal tax ID on their bank accounts, or raising money with no thought that a tax return will be required. To help parents, schools and other booster club volunteers get their booster clubs up and running legally, Parent Booster USA created and just released the Booster Club QuickStart Guide. The guide is now available to download at PBUSA’s website at http://www.parentbooster.org.
“Too often parents are unaware of the legal and organizational requirements for school booster clubs,” noted attorney and PBUSA founder Sandra Englund. “They know their supposed to raise money for the band trip, but they don’t know they’re supposed to file a tax-return, or when or if gifts to the booster club are tax-deductible.” The PBUSA QuickStart Guide recommends 5 easy-to-follow steps to help booster clubs get off and running to a legal, start.
Among the steps suggested are to gather an active team and create and approve a budget. PBUSA also recommends that booster clubs check to make sure the booster club has, and uses, its own 9-digit federal EIN and tells booster clubs how to get an EIN if they don’t already have one. PBUSA also recommends that booster clubs incorporate, and stresses the importance of booster club’s obtaining federal 501(c)(3) tax-exempt status.
Parent Booster USA is a nonprofit, 501(c)(3) educational organization that provides support and information to school booster clubs. PBUSA is authorized under an IRS group letter ruling to provide immediate tax-exempt status to school booster clubs, eliminating the need for these organizations to file separately for tax-exempt status. More information about PBUSA is available on its website at http://www.parentbooster.org.
# # #