How to Start a Sports Booster Club

Booster clubs are a collection of people who support certain organizations, usually a sports team. They are formed to support teams ranging from middle school all the way up to the professional ranks. The members of booster clubs cheer as a group during the team's events, but serve other functions as well, such as fund raising. These funds are used to purchasing equipment and to pay for trips for out-of-town games and events. Due to the fund-raising aspect and the amateur status of the team members, booster clubs should take extra caution when organizing,

Instructions

    • 1

      Contact an attorney or locate an online legal site and arrange to have your booster club incorporated; this will structure the booster club in way that prevents the parents and other members from being financially liable for the actions of the club. Create an official name for the booster club and file articles of incorporation with your state's Secretary of State office; these forms should include language that is required by the IRS for these types of organizations.

    • 2

      Create rules, or bylaws, for the booster club to adhere to, such as voting rules, how often meetings are held and how any fund raising is handled. Check with your Secretary of State's office to find out what specific language should be included in these bylaws that govern nonprofit organizations such as a booster club.

    • 3

      Obtain a tax identification number, also known as an employer identification number (EIN), for the booster club. This number, which works similar to a Social Security number, identifies the club to the IRS. After obtaining an EIN, you should set up a bank account in the name of the booster club so that all related funds can be channeled through that account.

    • 4

      Obtain tax-exempt status for the club. File a request with the IRS (Form 1023) if the booster club is likely to bring $5,000 or more in income and donations in a given calendar year. Obtain a 501(c)(3) tax status in order to be exempt from filing taxes and to allow the club to apply for grants, if applicable.

    • 5

      Follow the IRS fund-raising guidelines strictly. Ensure that all funds raised are used for tax-exempt purposes by the organization. Inform donors of the deductibility of their contributions. Avoid using individual fund-raising accounts with an attorney review, as individual accounts tend to be a violation of IRS regulations.

    • 6

      Elect a committee to decide how the money should be spent, as well as officers for the club, such as president, treasurer and secretary.

    • 7

      Arrange for an outside audit of the booster club's funds and paperwork annually or semiannually, depending on how much money is changing hands. Have the treasurer file reports with the club on a monthly basis showing how much money was taken in and how much went out in a given period.

    • 8

      Contact the team for which the booster club was created and work with them on fund-raising events. Find out what the team's needs are and plan events accordingly, using team members whenever possible, such as for car washes or food sales.