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Our Booster Club Forgot to File Our Tax Return

While booster clubs enjoy some tax benefits, that doesn’t mean they are immune from filing paperwork with the IRS.

Between fundraising, managing day-to-day operations, and keeping track of expenses, it can be easy to forget about other booster club and tax requirements. Here’s what to do if you forgot to file and how you can avoid it in the future:

What to Do When You Realize You Didn’t File Taxes

No one is perfect, and every booster club makes mistakes. If you realized you didn’t file your booster club taxes, don’t panic. There is usually a way to correct the error and avoid any kind of serious penalty. Most importantly, address the problem and be transparent with the club.

Don’t Ignore It

The worst thing you can do when you realize you didn’t file taxes is to ignore it. It can be tempting to just file away the paperwork and hope for the best, but it won’t work out in your favor.

Your state tax controller and the IRS are very good at finding organizations that did not file, and you don’t want to end up with a big fine when they realize you didn’t file. The best thing you can do is contact the relevant tax offices and see what you can do to rectify the situation.

Be Transparent with the Club

Forgetting to file taxes may be embarrassing to admit, but it’s important that you are transparent with the other people involved in the club. They donate their time and money, so they deserve to know the full picture of the club's financial state.

Do your best to explain the situation and bring a solution to the table. In the event that you do end up with fines for failure to file, the last thing you want to do is surprise your fellow club members with a bill.

How to Avoid Tax Problems in the Future

If you forgot to file taxes, turn it into a learning opportunity. Take action to prevent the same thing from happening next year. Familiarize yourself with the filing requirements, and consider utilizing a filing service. Using booster club software such as BoosterHub can provide handy guardrails for your officers as they conduct business throughout the year.

Familiarize Yourself with Booster Club Tax Filing Requirements

Booster club tax filing requirements can actually be pretty complicated, but familiarizing yourself with the basics can go a long way in preventing mistakes in the future. At a bare minimum, identify the tax filing deadlines and put them on a calendar so you will be reminded well in advance.

You should also take time during the year to ensure you have the right tools to produce the information you need to file.

Use a Filing Service

While your club may be hesitant to take on another expense, utilizing a filing service like Parentbooster USA Inc. is worth every penny. Parentbooster USA is a one-of-a-kind service that handles all of the IRS and state paperwork for booster clubs.

Founded by an experienced tax law attorney, the organization ensures that you’ll have total peace of mind when it comes to your club’s taxes.

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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: