Parent Booster USA Registers 1000th Booster Club with the IRS

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Parent Booster USA, Inc. (PBUSA) announced that it has reached a milestone registering over 1000 school PTOs, booster clubs and other nonprofit groups with the IRS since it began in 2004.

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“We know that parent volunteers, who just want to raise needed funds to support important school activities, need help to comply with IRS rules. The response to PBUSA has been extraordinary.”

Parent Booster USA, Inc. (PBUSA) announced that it has reached a milestone for school support organizations. PBUSA has signed up more than 1000 members since it began in 2004.
“The Internal Revenue Service (IRS) rules and requirements for school parent teacher organizations and booster clubs are tricky,” noted Sandra Pfau Englund, founder and executive director of PBUSA. “We know that parent volunteers, who just want to raise needed funds to support important school activities, need help to comply with these rules. The response to PBUSA has been extraordinary.”

Since the passage of the Pension Protection Act of 2006, the IRS requires all nonprofit organizations, regardless of the amount of funds they raise, be recognized as 501(c)(3) public charities and file an annual IRS 990-series information tax return. Many parent volunteers and school administrators are not aware of these rules or don’t know how or even where to start to comply.. In addition, schools are struggling with how to ensure that these independent (non-school) organizations are accountable for the funds that they raise with parent and student help.

PBUSA, a national nonprofit educational organization, provides resources to school volunteers, schools, and school administrators to help school parent teacher groups and booster clubs get and stay in compliance with IRS regulations, and are following appropriate financial practices. PBUSA has an IRS group determination letter that recognizes all PBUSA member organizations as 501(c)(3) tax-exempt organizations. When new members join PBUSA, PBUSA registers the organization with IRS. In this way, each PTO, music, athletic and other similar booster organization does not have to complete the IRS Form 1023 and apply separately for tax-exempt status.

The simplified process of obtaining 501(c)(3) status under a group exemption helps the members, schools, and the IRS. PBUSA eases the paperwork burden and cost of applying for 501(c)(3) status. PBUSA has also published recommended financial policies to help school fundraising groups account properly for the money they raise.

Ms. Englund summed it up, “It’s a win win win for everyone”.

Parent Booster USA, Inc. is a 501(c)(3) nonprofit, tax-exempt organization that provides information and resources to help school support organizations (i.e. PTOs, booster clubs). Members of PBUSA are automatically recognized as tax-exempt 501(c)(3) organizations under PBUSA's IRS group exemption. Founder and Executive Director Sandra Pfau Englund is an attorney that represents nonprofit, charitable and educational organizations throughout the United States and the world.

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Sandra Englund