Creating a booster club in Colorado is a time consuming task, but once achieved is a very rewarding organization. Below is a step-by-step How To on creating and starting the basics of a Colorado Booster Club. Whether it be athletic, drama, or music, following the steps and the state and federal laws, you will be on your way to founding your own booster club!
One of the first steps to creating a booster club is establishing a board of directors. In Colorado, your nonprofit must have one or more directors. The next step is to file an article of incorporation. The articles of incorporation need to include basic information such as your nonprofit’s name, your nonprofit’s statement of purpose, certain provisions required for state and federal tax-exempt purposes, and the name and address of your registered agent (the person to whom legal notices should be sent).
The information and materials necessary to meet state requirements for building your Colorado Booster Club can be found at Colorado Secretary of State. The website provides a variety of resources that you may need in order to create the appropriate Colorado Booster Club. The Colorado Secretary of State website has a link for general information for nonprofit and charity organizations, which can be useful for those starting out in the booster club creation process. Other information, like forms, needed to create a nonprofit corporation or charity organization can also be found on the site as well. Additionally, the Colorado Secretary of State website provides a corporation search engine that allows you to determine the availability of your desired booster club name. You should try to avoid having two organizations with the same name since it is highly unwanted by most states; aim to have a few name options picked out in case your first choice for a name is already taken.
The IRS website provides federal rules, as well as the resources that may be needed to build your booster clubs, such as information about forms nonprofits may have to submit to found a Colorado Booster Club. The IRS also provides tax information for nonprofits, which you may find helpful if you decide to make your booster club a tax exempt organization. Employee Identification Number (EIN) application guidelines, which may be needed to submit certain forms and to open a booster club bank account, are also provided on the IRS website. The IRS website provides information on multiple ways to apply for an EIN, which allows you to found your Colorado Booster Club with ease.
When preparing to create your Colorado Booster Club, you should look into structuring your booster club as a tax exempt organization. Tax exempt status can be beneficial for a booster club in numerous ways. For example, a nonprofit corporation puts it’s mission and structure above the financial benefits of individuals associated with it. There are other advantages, as well as disadvantages to look into when founding your booster club as a non-profit. Grantspace has a list of a few, and federal guidelines for tax exemption application can be found on the IRS website as well. If you need further guidance, the Hurwit & Associates website provides the guidelines for both state and federal tax exemption applications in Colorado, as well as any other forms or information you may need to create a booster club in Colorado.
To help ensure that you’ll receive 501(c)(3) tax-exempt status from the IRS, you’ll need to include specific language to receive tax-exempt status, such as a clause dedicating the nonprofit’s assets to another 501(c)(3) nonprofit organization should your nonprofit end. Your state form may include these provisions already, but, if not, consult a legal self-help guide such as How to Form a Nonprofit Corporation, by Anthony Mancuso (Nolo), to make sure your articles comply with Colorado’s nonprofit laws.
In order to have a properly functioning booster club in Colorado, there must be an organized way of banking. Without clear protocol for managing club finances, mismanagement of booster club funds increases drastically. Creating a booster club bank account will provide some of the structure you and your future organization will need to properly regulate and manage your booster club funds. Additionally, a booster club bank account expands the methods through which your booster club can conduct fundraising. Bank accounts open a door to online fundraising; booster club websites with the capability to accept online donations can often be set up with the bank account so that these donations are deposited almost directly into your Colorado booster club bank account. The legalzoom website provide general guidelines for creating a bank account for a nonprofit organization:
Although these steps are helpful, you will still want to carefully consult the different rules, benefits, and options of different banks.
It is important to prepare bylaws that comply with Colorado law. Your booster club bylaws contain the rules and procedures your organization will follow for holding meetings, electing officers and directors, and taking care of other corporate formalities required when running your booster club in Colorado. For more information, see Nolo’s article Nonprofit Formation Documents: Articles of Incorporation, Bylaws, and Organizational Minutes or, for help creating your bylaws, see Boostr’s previous article on the subject. Once you have created your bylaws, file them safely away. They are for your organizational reference only and do not need to be filed with the Colorado Secretary of State.
Your first board meeting is usually referred to as the organizational meeting of the board. The board should take such actions as:
After the meeting is completed, minutes of the meeting should be created by a designated board member. This information, as well as any other important documentation should be recorded in binders. These corporate record binders must be organized and safely kept by a member of the booster club for any future reference. For more information, as well as minutes forms, consent forms, and other resolutions, see Nonprofit Meetings, Minutes & Records, by Anthony Mancuso (Nolo).
After reviewing this article and following the steps included, it should seem simpler to create your Colorado Booster club than you might have thought. Along with our overview we have linked several helpful websites that will provide the additional guidance in the creation of your organization. We are excited that you have taken the steps on the road to successfully supporting your activity, school and community via your new Colorado Booster Club!