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Drafting a Budget for Your Nonprofit Booster Club: Examples and Tips

Booster club fundraising is a fun and exciting process, especially once you build some momentum. However, you need to make every dollar count so you can do the most good for the students. After all, that’s what it’s all about.

To maximize your resources, you’ll need a solid budget. The team at BoosterHub has created this budget example that you can use as inspiration for managing your finances.

Gaming vs. Non-Gaming Activities

The IRS divides fundraising into two categories: gaming and non-gaming. Gaming activities include things like bingo, raffles, and even tip jars. All of these are common fundraising tools used by booster clubs. Non-gaming activities include things like running concession stands, selling banquet tickets, and selling merchandise.

The IRS allows you to conduct these types of activities under your 501(c)(3) exemption, so long as you are following all applicable rules. However, gaming activities are often regulated at the state and local levels. Therefore, you’ll need to familiarize yourself with county and state laws on gaming-based fundraising. You should also track non-gaming and gaming revenue separately in your budget to make reporting easier.

Booster Club Budget Example

Now, let’s get into our budget example, which includes multiple sources of revenue and a categorized list of expenses. Remember, this is a generalized budget. Feel free to omit and add line items as necessary to align the budget with your club’s needs.

Revenue:

Gaming: $5,000
Non-Gaming: $15,000
Donations: $3,000
Membership dues: $2,000
Sponsorships: $5,000
Total revenue: $30,000

Expenses:

Event Expenses:

Venue rental: $2,000
Food and beverages: $3,000
Supplies: $1,000
Total event expenses: $6,000

Operational Expenses:

Insurance: $1,500
Marketing: $500
Utilities: $300
Miscellaneous: $700
Total operational expenses: $3,000
Program expenses: $8,000
Total expenses: $17,000

Net Income: $13,000

In this budget, revenue is broadly categorized into gaming and non-gaming activities, in line with IRS classifications. Donations, membership dues, and sponsorships are also significant revenue streams for the club.

Generally, program expenses include things like paying for equipment or activities for student-athletes. This line item can also include auxiliary costs of training volunteers, such as sending concession stand workers to a food safety course. The key is to make sure that every expense is carefully tracked and itemized so that you can account for every dollar earned and spent.

If your booster club is newer or has recently been overhauled, you probably won’t have much net income at the end of each reporting cycle. In these instances, you may want to scale back activities to build up a reserve.

Set a Budget and See It Through

Budgeting isn’t just about tracking booster club expenses. A great budget will help you contribute to more activities and serve as many students as possible.

You’ll also need to define your club’s mission and vision. A clear set of objectives will be your playbook for serving others, raising funds, and elevating the culture within the community.

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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: