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HOW TO CREATE A BOOSTER CLUB IN MICHIGAN
[/vc_column_text][/vc_column][/vc_row][vc_row widthopt=”” fixedbg=”” footerrow=””][vc_column width=”2/3″][vc_empty_space][vc_column_text css=”.vc_custom_1521157034318{margin-bottom: 40px !important;padding-top: 15px !important;}”]Despite the popularity of booster clubs in the United States, especially in the school system, there is no concrete process for how a booster club should be set up. While all booster clubs, at their core, serve the same basic functions, the actual process of creating a booster club varies from state to state. From state policies to the size of the market to how school systems are run, how you set up your booster club all depends on the area you reside in. While there are, of course, some basic, universal steps that can help you form a successful and sustainable booster club, we’ve decided to break down the process state by state. Below, we’ve collected some vital information about what it takes in order to create a booster club in Michigan.
DOES YOUR BOOSTER CLUB IN MICHIGAN SERVE A PURPOSE?
Take a moment to consider if there’s a true need for the booster club while also taking stock of whether another booster club may exist in your area. If, in your research, you have found a booster club already active in your area, be sure to also consider whether that local booster club or non-profit will be cooperating with the fiscal sponsorship or umbrella 501(c)(3) organization you will be collaborating with.
REGISTER YOUR MICHIGAN BOOSTER CLUB AS A NON-PROFIT
Booster clubs are most commonly registered as non-profit organizations. Registering your booster club as a non-profit will allows your organization to fall under section 501(c)(3) of the Internal Revenue Code. Subsequently, your booster club will be granted tax-exemption, as long as you reserve and register the name of your booster club and fill out a CSCL/CD-502 form, also titled the “Articles of Incorporation for Use by Domestic Non-Profit Corporations.” This form outlines the purpose of your club and serves as proof of the booster club’s creation. To create a booster club in Michigan, submit this document to the office below, and you should be on your way to developing your own volunteer based non-profit!
State of Michigan
Department of Licensing and Regulatory Affairs (LARA)
Corporations, Securities, & Commercial Licensing Bureau
Corporations Division
http://www.michigan.gov/lara
Articles of Incorporation for Use By Domestic Non-Profit Corporations Form: https://www.michigan.gov/documents/lara/502_08-15_527692_7.pdf
FOUND YOUR MICHIGAN BOOSTER CLUB UP ASA 501(c)(3) FEDERAL NON-PROFIT
Applying for 501(c)(3) federal non-profit status will solidify your booster club in Michigan as a non-profit organization. In order to apply, contact the Internal Revenue Service, or IRS at 800-829-4933 in order to receive the document “Tax-Exempt Status for Your Organization,” also called Publication 557, as well as the accompanying package, “Application for Recognition of Exemption.” Below, we’ve included links to the forms you will need to fill out to continue your Michigan booster club creation, as well as a document that gives step by step instructions for the application process.
Internal Revenue Service
- Form: IRS Form 1023
- Instructions: IRS Instructions for Form 1023
- Additional Guidance: IRS Pub 557: Tax-Exempt Status for Your Organization
- Fee: $400-$850
The turnaround on these forms can range from anywhere between 3 to 6 months. After reviewing your document, the IRS will send you back a determination letter which will officially recognize your Michigan booster club as a tax-exempt, non-profit organization.
YOUR MICHIGAN BOOSTER CLUB NEEDS A FEDERAL EMPLOYEE IDENTIFICATION NUMBER (EIN)
Federal Employer Identification Numbers are the formal way of identifying any businesses that are active in the United States. Regardless of whether or not an organization is a non-profit, all businesses or, in this case, booster clubs that have employees need to apply for an EIN.
In order to apply, proceed with the submission on link below:
Internal Revenue Service
http://www.irs.gov/
- Form: IRS Form SS-4
- Guidance: IRS Pub 1635: Understanding Your EIN
- Filing Method: Mail, phone, fax, or apply online with the IRS
- Fee: $0
Note that the IRS website is only available during certain hours. Try to ensure that you print the EIN before closing your session.
ADDITIONAL STEPS FOR APPLYING FOR TAX EXEMPTION IN MICHIGAN
In order to create a booster club in Michigan, your booster club needs to be sure to fill out form 3372, also titled the Michigan Sales and Use Tax Certificate of Exemption document. Non-profits, including booster clubs, that are active in Michigan who fill at this form are exempt from Michigan’s 6% Corporate Income Tax (CIT)
- Be sure to attach the determination you will have received from the IRS after applying for 501(c)(3) status with your booster club when submitting form 3372. For More information, visit Michigan Department of Treasury at
http://michigan.gov/taxes - During your Michigan booster club creation, you may also think about registering for Charitable Solicitation/Fundraising before moving forward. While most booster clubs may not need to register, considering the Solicitations Act exempts organizations that raise funds exclusively using volunteers that receive less than $25,00 a year, it is still a route to consider.
- To create a booster club in Michigan, register and submit the form with the links below.
- Website: http://www.michigan.gov/ag
- Form: Initial Solicitation Registration Form
- Filing Method: Mail or online
- Fee: $0
- Law: Michigan Charitable Organizations and Solicitations Act
- Stay aware of your fundraising methods. Try to avoid cooperative fundraising while you create a booster club in Michigan. Cooperative fundraising is a system that tends to give financial benefits to volunteers based on activities or contributions to the club. The IRS views cooperative fundraising as a private benefit and may not grant tax-exempt status to your Michigan booster club.
- Remember that every volunteer and individual aided by the booster club must be selected on an objective, non-discriminatory basis. Each member must come to the booster club as a volunteer, and each volunteer must be allowed to participate in club activities regardless of their own financial donations.
- As you continue to move forward with the process of creating a booster club in Michigan, you may want to think about filing with the Attorney General’s Charitable Trust. The Charitable Trust in Michigan is, to put it simply, a database of financial and miscellaneous information that the public can access in order to investigate the charities or non-profits they wish to donate to.
FINALLY! KEEP TRACK OF RECORDS AND ASSIGN BOOSTER CLUB DUTIES
After filling out all of the documents listed above, be sure to keep close track of the other records collected by the booster club. Buying a book or binder can be useful in keeping all important documents or files in one place. To create a Michigan booster club is a long, sometimes strenuous process. The more organized you are, the better. After all of your paperwork is in order, begin planning out the objectives and bylaws of your booster club based on Federal and Michigan State guidelines. Start recruiting volunteers and assigning office positions. Be sure to open up a booster club bank account in Michigan in order to avoid using a member’s personal bank account. That way, you can keep track of the Booster Club finances more carefully. Plan meetings and take minutes to keep track of the progress of the club as you begin organizing and participating in events. Be sure to advertise the booster club and your club’s mission in order to help people find your booster club.
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