booster organizations - tax issues?

[gasman61]

Do any of you have experience with the tax issues involved in being a booster organization? Our new treasurer has some concerns about the whether a booster organization should file as non-profit, should file taxes, etc. Our band directors do not seem concerned.

A google search of this topic definitely shows there are booster organizations that have faced huge fines for not filing taxes. I am just wondering if anyone on this board has had any experience in this area?

 

[dizneechic]

Are you a nonprofit tax exempt organization (501c)?
http://en.wikipedia.org/wiki/501(c)

Even if you are you need to file taxes. For organizations who make less than 25k per year filing is a few simple mouse clicks, if you make over that you need to fill out longer forms. If you forget to file your taxes 3 years in a row you can also lose your tax exempt status and have to go through the entire reapplication process. Here's a little article about the new filing laws that were put into place 3 years ago with a link to check and see if your about to lose status as of tomorrow for not filing:
http://www.npr.org/templates/story/story.php?storyId=126745771

 

[gasman61]

No, we are not a 501c. And I think that's where our problems may occur. And, we definitely make more than $5000/year, although we spend most of what we bring in.

Thanks for your links though.

 

[bobcat]

You may have been filing everything under your schools non profit status. We have been that way for years but are getting our own 501c3 now. If your booster treasurer hasn't had to report anything to your school treasurer then I would be concerned. I would check with your school treasurer.

 

[McKelly]

Our PTA just filed this past year. We were flagged when we were doing a fundraiser and the company asked us for a copy of our 501c. Of course we didn't have one, and then were flagged by the IRS. We have a budget of $20,000.00 a year.

We looked into just being under the umbrella of the school district, but the financial guy said then we had to order everything from all of their "approved vendors", etc. and invoices would have to go through the district office, etc. That just seemed like more of a headache so we just filed. It wasn't that difficult....just two moms filling out the forms. We only had it returned once asking for more info (LOL).

 

[clutter]

Do any of you have experience with the tax issues involved in being a booster organization? Our new treasurer has some concerns about the whether a booster organization should file as non-profit, should file taxes, etc. Our band directors do not seem concerned.

A google search of this topic definitely shows there are booster organizations that have faced huge fines for not filing taxes. I am just wondering if anyone on this board has had any experience in this area?

Do you have a bank account? If so, who's federal ID is used? That's the entity that needs to be filing with the IRS.