School Booster Clubs Need Tax-Exemption

Any school booster club that plans to raise $5000 or more this school year needs federal 501(c)(3) tax-exempt status. Parent Booster USA, a national nonprofit organization, has been authorized by the IRS to grant immediate tax-exempt status to its members, avoiding the long and costly process booster clubs faced in the past.

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Immediate tax-exempt status - 501(c)(3) - for school support organizations (PTO's)!

In this way, groups of similar organizations, like school support organizations, avoid the need for each group to individually apply to the IRS for tax-exempt status.

Windermere, FL (Vocus) September 10, 2009

IRS rules require any organization that raises $5000 or more to file a tax return. Unless school support organizations and booster clubs have tax-exempt status, the IRS may require such groups to pay tax at corporate rates on their hard-earned fundraising money. Tax-exemption also allows donations to booster clubs to be tax-deductible. Parent Booster USA (PBUSA), a national nonprofit organization, has been authorized by the IRS to oversee and provide immmediate tax exempt status for booster clubs. With the soft launch of PBUSA's new website, booster clubs can apply today and have tax-exempt status for tomorrow's fundraising event.

“We are excited to open to the public our new website that makes obtaining recognition of tax exempt status for booster clubs almost automatic,” announced John Englund, Executive Director of PBUSA. “Now school booster groups can apply for membership in PBUSA today, and have a certificate recognizing their federal 501(c)(3) tax exempt status as early as tomorrow.”

PBUSA is a national umbrella organization authorized by the Internal Revenue Service (IRS) to grant tax-exempt status to all of its members. Simply by joining PBUSA online at http://www.parentbooster.org qualifying school booster clubs – football, cheerleading, gymnastics, chorus and other booster groups -- will be added to the IRS master list of 501(c)(3) tax-exempt organizations under PBUSA’s group letter ruling.

“Parents and school administrators often comment that obtaining tax-exempt status this way seems too good to be true,” noted PBUSA founder Sandra Englund, an attorney whose work primarily focuses on nonprofit, tax-exempt organizations. Ms. Englund explained that many people are not aware of the IRS group letter ruling process. “The IRS uses group letter rulings to make administration of the tax exemption process more convenient for the IRS, and for groups of organizations that have similar structures, purposes and activities,” stated Ms. Englund. “In this way, groups of similar organizations, like school support organizations, avoid the need for each group to individually apply to the IRS for tax-exempt status.”

Using PBUSA’s automated website, school booster groups simply complete a membership application online and submit the joining fee of $195. Once the application is processed, a membership certificate that identifies the organization as a member of PBUSA and tax-exempt under section 501(c)(3) of the Internal Revenue Code is emailed to the member. PBUSA then notifies the IRS to add the new member to the IRS master file of tax-exempt organizations.

The joining fee provides membership through December 31. Renewal dues to maintain tax-exempt status and membership in PBUSA are $95. This process is much simpler than the usual process of obtaining IRS tax-exemption which involves completing a complicated IRS application, often requiring the assistance of an attorney or other professional, submitting a $750 filing fee, and waiting at least 6 months for the IRS to rule on the application.

Tax-exemption under a group letter ruling has the same effect as an individual exemption letter. More information about the IRS group letter rulings is available in IRS Publication 4573 available at http://www.irs.gov.

More information about PBUSA is available on its website at http://www.parentbooster.org

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