HOW TO CREATE A BOOSTER CLUB IN OHIO

Ohio, located in the Midwestern area of the United States, has a fantastic infrastructure for creating non-profits and booster clubs. Due to its moderate population and easily navigable regulations, to start an Ohio booster club is not only a valuable, but a fairly painless process! The Ohio State Booster Club Association regulates all booster clubs operating in the state of Ohio, setting guidelines meant to assist booster club officers and volunteers on the basis of giving organizational and financial guidance. Below, we’ve set up a list of steps you can follow to aid you in your Ohio booster club creation!

 

REGISTER OHIO BOOSTER CLUBS WITH THE OHIO SECRETARY OF STATE

In order to create an Ohio booster club, it’s necessary to file Articles of Incorporation with the Ohio Secretary of State’s office. Articles of Incorporation serve as proof of a booster clubs creation, while also giving the state an outline of what your organization’s purpose is. These files are also necessary in registering your booster club as a non-profit organization. To start an Ohio booster club, submit your Articles of Incorporation to the office listed below and you’ll be on your way to registering your booster club as a legitimate non-profit organization!

 

FILE FOR AN EMPLOYER IDENTIFICATION NUMBER WITH THE IRS

In order to formally identify active businesses in the United States, the Internal Revenue Service, or IRS, have made it necessary for all organizations to file for an employer identification number. Below, we’ve listed a link that will give you instructions on filling out the form, as well as a link to the form itself.

Internal Revenue Service

Link to Form: https://www.irs.gov/pub/irs-pdf/fss4.pdf

Further Instructions: https://www.irs.gov/pub/irs-pdf/iss4.pdf

Fee: $0

File the form via mail, phone, or apply online with the IRS. However, if filing online know that the IRS website isn’t available 24/7 and is only active during certain hours.

 

REGISTER YOUR BOOSTER CLUB AS A NON-PROFIT TO OBTAIN TAX-EXEMPT STATUS

The next step to create an Ohio booster club, is applying for 501(c)(3) status as a non-profit organization. Applying for tax-exempt status as an organization can be a tedious process due to the sheer amount of paperwork, but it is a crucial part of your Ohio booster club creation. Below, we’ve outlined some of the  steps needed to register your booster club as a tax-exempt non-profit and what subsequent forms you need to fill out.

  • The first, and possibly most important form your booster club needs to fill out is the IRS Publication 557, also titled “Tax-Exempt Status for Your Organization.” Contact the Internal Revenue Service to obtain the document, as well as the accompanying package, “Application for Recognition of Exemption.”
  • The next application that needs to be filled out by your booster club is filed as Form 8718, or User Fee for Exempt Organization Determination Letter Request. This document will carry your user fee, which will be paid to the Internal Revenue Service. Usually, the fee for organizations whose yearly gross average at less than $10,000 is $400. For booster clubs who average at about $10,000 or more must pay $850.
  • Finally, to create an Ohio booster club, you have to be sure to submit your organization’s Articles of Incorporation. These articles legally document the existence of your booster club, while also filing away pertinent information such as the booster club name, place of business, purpose, and more.
  • Once all of these documents are filed and you have obtained tax-exempt status for your organization, the IRS will send your booster club a determination letter as evidence of your approval. This letter should be kept in a safe and permanent location, just like all of the other documents filed, as it will have to be used every now and again as proof of the booster club’s tax-exempt status.

 

PUBLIC DISCLOSURE IS MANDATORY WHEN STARTING YOUR OHIO BOOSTER CLUB

On request of its original application for tax exemption, a nonprofit organization must provide copies of any and all supporting documents, as well as any letter documents issued or sent by the IRS in connection with the application. Additionally, your booster club must provide copies of its annual IRS information returns of the past three years, depending on its length of activity, including all schedules and attached documentation.

The request to prove your nonprofit’s tax-exempt status will happen routinely in order to ensure the legality and legitimacy of your booster club. When a request for information on the order of public disclosure is made in person, your Ohio booster club is required to relinquish all of the requested information immediately under the guidelines of the IRS. However, if the request is submitted through writing, you’ll have to provide the documents within 30 days of the request in order to avoid any legal infringements.

 

ACCOUNT FOR ALL OF YOUR BOOSTER CLUB TRANSACTIONS

Due to the importance of keeping all of your legal documents and proof of tax-exempt status organized, it would be in the best interest of your booster club to establish a consistent way in which to account for your transactions. There are a wide variety of ways to assist in helping you keep an accurate financial log for the organization, such as computerized or digital accounting packages. Manual record keeping is no longer the preferred or most efficient method of keeping track of the club’s financial comings and goings. However, establishing records in a spreadsheet format is perfectly acceptable. Whatever the method you choose for your Ohio booster club, be sure to make sure it’s accurate, dependable, and able to be used for several fiscal years.

 

KEEP WITHIN THE REQUIREMENTS SET FOR NONPROFITS IN THE STATE OF OHIO

Despite Ohio having a very stable and well managed system for the creation and maintenance of booster clubs, there are still regulations that need to be followed in order for booster clubs and other organizations to keep their tax-exempt status. The IRS has strict rules against private inurnment, or the transfer of any of an organization’s assets to, or for the benefit of, an individual for a purpose that doesn’t lie within the boundaries of the organization. This means that individuals may not control any fundraising accounts set up in their personal name, nor may they withdraw any funds from the organization’s accounts to use as they wish. A booster club registered as a tax-exempt organization has to thoroughly lay out how all of its funds will be used.

Additionally, to successfully start an Ohio booster club and avoid any legal mistakes, your organization must honor the promise to treat all participants equally. Avoid cooperative funding, which gives higher financial benefits to volunteers and participants based on how much they contribute to a club.

While the process may seem, at times, overwhelming, to create an Ohio booster club is to give back to the community. The state of Ohio has a number of systems put in place that can help you organize and fill out your information, such as the Ohio State Booster Club Association. Staying honest and on top of your paperwork will allow your Ohio booster club creation to run smoothly, meaning you’ll be able to savor the valuable experience of starting an Ohio booster club.

Booostr Newsletter Sign Up!


Featured
Support our sponsors

LEARN ABOUT BOOSTER CLUBS FROM THE BOOOSTR BLOG