Unofficial Guidance on Booster Clubs

  1. If the Booster Club is operating as a 501c3 non-profit corporation, has its own Tax Identification Number and is registered and approved with the IRS as a non-profit: (Most non-profit organizations think that because they have registered with the Secretary of State’s office they are a non-profit. Organizations must register and be approved by the IRS to qualify for the tax benefits.)

A. Treatment of Perks and Benefits to Educators- The Booster Club is responsible for all record keeping and tax notification. A form 990 Return of Organization Exempt from Income Tax should be filed with the IRS if the organization had gross receipts greater than $25,000. On that form, the Booster Club would have to report any gifts given to an Educator. The Booster Club at a minimum should 1099 Misc the coaches for the income. It would then be the Educator’s responsibility to report the additional income on their tax return. This would include the use of any vehicle owned or leased by the Booster Club. If the Educator was given a car by an individual Booster, then this would not apply. It would be considered a non-taxable gift. The car would have to be owned or purchased by the Booster Club to be a taxable event.

B. CampIncome to Coaches - If the Educatoris conducting a camp and the funds are run through the Booster Club, the same conditions as above would apply.

Note>If a Booster Club is operating as a true 501c3 non-profit and they file a tax return, that return is open for public inspection and you can request a copy of the return from the organization. Superintendents should require that Booster Clubs submit a copy of this form each year to verify compliance. A copy of this report in the file clears the superintendent of responsibility for actions of the club if illegal actions art reported.

  1. If the Booster Club has not filed as a non-profit or has filed as a non-profit, but is using the School Systems Tax Identification Number:

A. Treatment of Perks and Benefits to Educators - All liability for record keeping, tax reporting and 1099 Misc reporting to Educators falls on the School System. The Educator is still responsible for his or her own taxes, but it is the responsibility of the school system to perform all the record keeping and tax reporting.

B. Camp Income to Educators - If the coaches are running the camp income through the Booster Club (i.e. using their checking account) and they are operating under the School Systems Tax identification Number, all record keeping and tax reporting falls under the School System.

Note>If Booster Clubs are not operating as a true 501c3 non-profitorganization, it is the responsibility of the superintendent to assure that the school system is performing all record keeping and tax reporting functions.

  1. If an Educator is operating a camp and the income is run through his/her personal checking account, all liability for income tax reporting falls on the shoulders of the coach.

Note>The Educator must have system approval for camps or lessons involving school facilities, equipment or students in the educator’s classes or school.

For further support and guidance, please see the following IRS forms: IRS Form 990; ; IRS Guidance on Fringe Benefits;