Creating the correct Montana booster club structure is not always easy. Founding a booster club takes time, effort, and acute attention to both federal and state laws. Furthermore, laws regarding booster clubs are not the same across the country, since each state has its own laws. The tips below provide insight into what it takes to create a booster club in Montana.
One of the first steps you should take to build your Montana booster club is to familiarize yourself with the resource your state provides for those seeking to create a booster club in Montana. The Montana Secretary of State website provide information that you will need to know to found a Montana booster club. This website provides information regarding forms and fees that may need to be submitted to the state, access to a business search engine through which you can determine booster club name availability, and information for nonprofit organizations seeking to obtain 501(c)(3) tax exempt status. Determining the availability of your booster club name is important because many states do not allow two organizations within the same state to have the same name. You may want to have a few different name option ideas, since your first choice for your booster club name may not be available.
When you build your Montana booster club, you may want to apply for an Employee Identification Number (EIN) through the IRS. An EIN is often needed to carry out important tasks when establishing a booster club. If you wish to open a bank account for your booster club, for example, you will likely need to have an EIN. Additionally, you may need an EIN when filing certain forms. See IRS guidelines to learn more about applying for an EIN when you found a Montana booster club.
Tax exemption status, much like an EIN, can be useful to booster clubs in a number of ways. When fundraising as a tax exempt organization, booster clubs will not have to worry about the cost that comes with operating without tax exemption. When applying for tax exemption, you will have to apply for both federal tax exemption and state tax exemption. See IRS guidelines for applying for federal tax exemption, as well as the other resources they provide regarding procedures for nonprofit organizations. To learn about how your booster club can gain state tax exemption status, consult the Montana Department of Revenue website. The Hurwit & Associates website also provides useful information about applying for both federal and state tax exemption, as well as information on other forms nonprofit organizations in Montana may have to file. When you create a booster club in Montana, carefully review federal and state tax exemption procedures to learn about how best to become a tax exempt booster club.
Managing booster club finances can be a complicated process, but can be made easier with a booster club bank account. Organization of finances becomes much simpler with a booster club bank account, as mismanagement of funds becomes easier to avoid. Additionally, having a booster club bank account can expand your booster club’s fundraising options. If your booster club has a website that can accept digital donations, for example, the donations gained through the website can be deposited into your booster club bank account. The legalzoom website provides basic guidelines for setting up a booster club bank account, but you will also have to review your individual bank’s rules and benefits for nonprofit organizations such as booster clubs.
It is also important to keep in mind that, although a bank account makes mismanagement of funds easier to avoid, mismanagement of funds is still possible even with a bank account. When you found a Montana booster club, take care to set up booster club bylaws that outline financial management procedures in detail.
If you seek to create the correct Montana booster club structure and avoid making mistakes, it is best to have a clear plan of action and carefully consult federal and state laws. A thorough knowledge of the procedures needed to found a Montana booster club will make the process an easier and less frustrating one. Remember to refer to federal and state websites whenever you are unsure of how to proceed, as well as other trustworthy sites providing helpful tips. Try not to rely on a single source, to ensure you find the most accurate and up to date information. While it is not a simply process to create the correct Montana booster club structure, the effort will feel well worth it once your booster club commences activities and starts making a difference.