Advice for setting up 501(3)(c) for high school sports team

Hire an accountant.

quote:

---

Hire an accountant.

---

We know one, we’ll probably start there

Best to hire an attorney to walk you through it. You’ll need to register with the state. File yearly taxes etc.

Pretty easy. Hire an attorney/ accountant. They’ll first set up the entity which depending on your state will likely be a non stock corporation.

The governing docs (bylaws and charter) should contain language about being not for profit. You’ll also want a conflicts of interest policy. You’ll fill out the irs form which will ask you to attach your corporate docs+conflicts policy or certify that you have them and they’re compliant.

In addition to irs filings, your state may require you also to apply for non profit status for state taxes as well. Usually state requirements are the same as the irs, but you’ll want to confirm.

Setting up the 501(c)(3) is a somewhat straight forward process

1) Set up the nonprofit corporation with your state

2) Apply for EIN from the IRS

3) Apply for tax exempt status from the IRS. This will be the hardest part but there is a simplified form you can use depending on your expected revenues.

4) Depending on your state, there may be additional state requirements.

But the other thing to consider is that since this is a booster club, you will need to coordinate this with the school board, and also consider your state athletic organization rules regarding booster clubs. There may be additional requirements, filings, etc.

Anytime a non-profit supports a government organization like a public school, there is going to be additional complexities.

I would have the school's athletic director and/or principal, and maybe someoene from the district office, involved at every step here.

Here is some information on the rules in Texas, for example.

LINK