Booster clubs have become a popular form of raising money for departments and programs that struggle financially, but despite their popularity, there’s been no singular legal process created for the establishment of a booster club in the United States. As in most regions throughout the country, the rules and regulations for founding a booster club vary, and founding an Arizona booster club is no different.At Booostr.co, we’re hoping to ease the process of creating and managing booster clubs through our Booostr Booster Club Blog and Booster Club Management by State articles. Each of these resources gives you access to the information you’ll need to successfully create an Arizona booster club or a booster club in your state. Read further to learn the process for creating a booster club in Arizona, covering all of the key regulations and legalities.
First and foremost, to create a booster club in Arizona, your organization needs to be registered as a legal nonprofit corporation. You can begin this process by reading the Arizona Revised Statute Title 10, Chapters 24-35 and Chapters 36-40. These chapters will cover the general regulations established by the state for corporations and associations. They will also inform you of what documentation you need to file with the state to make your Arizona booster club a legitimate nonprofit organization.
You’ll also want to give your booster club a title. All names of nonprofit organization’s within Arizona must be distinguishable from one another, so make sure to check that the name of your Arizona booster club is unique and recognizable. As an extra, preventative step, you can check your final title with the Arizona Corporation Commision’s name database. There, you can also reserve the title your Arizona booster club has settled on for 120 days! Reserving your name will prevent any other organizations from registering with the same title while your booster club fills out and submits their articles of incorporation.
To create an Arizona booster club with the correct organization structure, its absolutely crucial that your Arizona booster club create fill out the Arizona Articles of Incorporation form. The form itself outlines the purpose of the organization and ensures that it meets IRS requirements. Additionally, the documents require your Arizona booster club submit basic information such as the estimated size of the club, the place of business, and the kinds of work it intends to do in Arizona. The articles of incorporation form you will need can be found here on the Arizona Corporation Commission’s official website.
As you build you Arizona booster club, you should also get a hold of a Statutory Agent Acceptance form and a Certificate of Disclosure form to fill out. Usually, these documents are submitted at the same time your articles of incorporation are filed, in conjunction with the additional IRS Publication 557 form. Though it may seem like a lot of paperwork, each form is absolutely crucial to whether or not you build the correct Arizona booster club structure.
In order to obtain full tax-exempt status for your Arizona booster club, you need to file your nonprofit as a tax-exempt nonprofit through both the IRS and the state government. To apply within through the IRS, you’ll need to complete and submit Form 1023, which will inquire about your organization’s financial policies, history, and structure. If you create your Arizona booster club and it happens to only have a projected annual gross of less than $50,000, you might be eligible to file Form 1023-EZ which allows your organization to go through a more streamlined application process.
Once your booster club gets approval for federal tax exemption from the IRS, your organization should be automatically exempt from the Arizona income tax. As an additional regulation, nonprofits are no longer required to register through the state to solicit donations. However, if your organization accepts or receives any donations that come in through other states, you have an obligation to register.
Knowing if your Arizona booster club will accept out of state-donations is only one aspect of the collaborative conversation you’ll need to have as you build your Arizona booster club. Internal discussion is absolutely necessary in the establishment of bylaws, which will serve as a sort of playbook for your Arizona booster club. Having bylaws that comply with Arizona law that will keep your nonprofit organized and efficient are crucial to its success! Assigning officer and directorial positions, collaborating with other organizations, and holding meetings are other major aspects of forming the correct Arizona booster club structure.
Additionally, your Arizona booster club should look into assigning a bookkeeper to maintain and organize all important forms and documents. Create an efficient but effective system for keeping track of meeting minutes, the articles of incorporation, the outline of your clubs bylaws and more. At times, the IRS might require proof of existence or tax-exemption from your organization just as a formality. Being able to locate such documents quickly will only be to your benefit!
One of the final, but nonetheless important, parts of building an Arizona booster club is applying for an Employee Identification Number, or EIN. EIN’s are granted through the IRS, acting as a sort of record for the activity of your organization. To apply for an EIN, you simply have to visit the IRS website and fill out the application. After that’s established, you’ll receive your EIN right away per the requirement that all the information you submitted meets the standards of the IRS.
EIN’s are not only a crucial part of how you create an Arizona booster club, but they make the whole process of running the organization more straightforward. In that same vein, establishing a bank account that’s used solely for the club’s financials is a necessary when you found an Arizona booster club. Keeping any financial activity separate from members or participants of the club will help avoid any kind of confusion or, in some cases, dishonesty when it comes to how your organization handles money. Additionally, it will make the entire donation process easier, while also allowing the transfer of money to your associate department a more streamlined process!
While there are many components to how you found an Arizona booster club, the end result is worth it! Through the paperwork and collaboration with the state and IRS, your community will receive and invaluable financial resource that they can turn to in times of financial struggle. To learn more about how you might maintain your booster club, check out Booostr’s Booster Club Blog. Otherwise, if you’re looking to build a booster club in another area of the United States, you can take a look at the Booster Club Management by State tab!