BoosterHub

Chances are high that you’ve at least heard about booster clubs. They’ve been around for years and are a vital part of the high school sports ecosystem. The question is, what do booster clubs actually do? And more importantly, who do they support, and what are they allowed to spend money on?

If you’re thinking about starting a booster club or just have questions about these important fundraising organizations, this introductory guide is just what you’ve been looking for. Join us as we explore booster club basics.

What Is a Booster Club?

A booster club is a nonprofit, 501(c)(3) tax-exempt organization that raises funds for high school or university-level athletics. Booster clubs can also support private sports entities, such as a gymnastics school.

Booster clubs are typically run and organized by the parents of students who attend the school and participate in one or more sports. In addition, most are athletic booster clubs, which means they raise funds for and support all of the school’s official sports.

Others are sports-specific booster clubs. These only fundraise and support a specific sport and team.

Who Can a Booster Club Support?

A booster club can support all of a school’s teams or a specific team or club, including a band. Athletic booster clubs are the most common, and they typically support all of a school’s sports, as well as the band. Private schools, universities, public schools, and even gymnastics schools can benefit from the support of booster clubs.

Booster clubs use a variety of fundraising methods to generate revenue for the school and sports they support. All this money is exempt from federal income tax so long as the club is properly registered as a 501(c)(3) organization.

Generally, booster clubs cannot support an individual. They must provide funding to the group as a whole.

For instance, the booster club president couldn’t use club funds to buy new football gear for their son who plays on the varsity squad. However, the club could donate money for the purchase of new equipment for the entire team or simply purchase the gear outright.

Dos and Don’ts of Booster Club Spending

As part of the IRS rules for 501(c)(3) organizations, a booster club cannot give money to or make purchases for any one person. For example, a club couldn't pay a coach a bonus or purchase new equipment for their office.

However, the club could make a donation to an entire team of athletes for gear. The club could also cover pre-game meals, travel expenses, and other miscellaneous costs that student athletes and coaches may incur while going to a tournament or participating in sports activities.

Should You Start a Booster Club?

If your school doesn’t have a booster club, starting one could be an excellent way of supporting the school’s student-athletes. When starting a booster club, make sure to create a cohesive plan and collaborate with like-minded parents. Together, you and the other founding club members can achieve great things for the school and students.

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Ways to Fundraise for a Booster Club

Fundraising is perhaps one of the most important functions of your booster club. However, it can be tough to build momentum, especially if you are new to fundraising as a whole. You can also get stuck in a rut and feel like you are running the same two or three events on repeat. That’s when it’s important to mix things up to keep club members and donors engaged, ensuring a steady stream of support for your student-athletes. With that in mind, here are a few ways to raise more money for the student-athletes you support:

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Non-Profit Donation Receipt

Whenever someone donates to your club, you must ensure that you send them a clear receipt so they can take advantage of their tax deduction. These receipts are your club’s way of saying, “Thanks for being on the team,” and they’re essential for keeping records organized. Providing a timely and well-documented receipt also makes your club appear professional and organized. In turn, you’ll be able to more easily build trust with donors and encourage them to give again in the future. After all, donors need to be confident that you’re acknowledging and managing their contributions properly. On that note, here are a few tips to help you create compliant receipts:

Booster Club Best Practices

Booster Club Rules

You certainly wouldn’t sign up for a sports league without knowing the rules of the game, so why would you attempt to run a booster club without a clear set of guidelines? In a booster club, the rules take the form of bylaws, which are policies and procedures that are vital in keeping everyone on the same page, helping to avoid misunderstandings, and ensuring that each member understands their part in supporting the club’s mission. In some cases, these bylaws will spell out who can and can’t be members, as well as who is eligible to serve on the board. Some states even have standardized playbooks that you need to follow. The University Interscholastic League (UIL) in Texas, for instance, has a playbook of its own, covering specific bylaws for booster clubs that support school programs. In any case, here are some tips for ensuring everyone in your booster club plays by the rules so you can have a productive year: