Category Archives: Leadership

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5 Essentials for Booster Clubs to Meet IRS Requirements

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The Internal Revenue Service exempts booster clubs and other nonprofits from paying taxes as long as they register as 501(c)(3) organizations. Without this exemption, booster clubs could owe 15 ~ 25% of their income in taxes.

However, this exemption has significant implications. The IRS requires booster clubs to distribute funds equally to all students, regardless of their individual participation in fundraising activities. So, is it advantageous for a booster club to register with the IRS as a 501(c)(3)?

What Should Booster Organizations Do?

Booster organizations should take advantage of the tax-exemption offered by the IRS under section 501(c)(3). The booster leader’s top financial priority is to operate in full compliance with the guidelines provided by the IRS. I am neither an attorney nor an accountant. However, I have learned these five essentials while leading a booster organization:

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Why The IRS Requires Nonprofits to Operate With One General Fund

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Last week, we saw that the IRS prohibits booster clubs and other nonprofit organizations from operating with individual student accounts. Instead, booster clubs must operate from one general account, and distribute funds to benefit all students equally. Now, let’s take a moment to consider why.

The IRS Generates Revenue for the Federal Government

The IRS’s primary function is to generate revenue for the federal government. Since section 501(c)(3) exempts booster organizations from paying taxes, the IRS leaves a considerable amount of revenue “on the table.” Without the exemption, you could owe 15 ~ 25% of your organization’s income in taxes. When you think in these terms, the IRS’s stringent guidelines begin to seem more reasonable.

But it doesn’t stop there. Let’s illustrate additional tax implications associated with student accounts. Consider that a booster organization sets a fair share of $300 per student. Tyler’s family writes a $300 check to satisfy his fair share at the beginning of the year. Megan, on the other hand, works fundraising events through a partnership with the local university. Throughout the course of the year, Megan earns enough through fundraising to satisfy her fair share.

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Should Students Who Don’t Fundraise Get to Participate?

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Perhaps the greatest challenge you’ll face as a booster club leader is achieving annual fundraising goals. You’re always seeking new ways to motivate students and parents to participate in fundraising activities.  To hold each family accountable for their “fair share” of the overall fundraising goal, many booster clubs have implemented individual student accounts. The trouble is, this violates IRS guidelines for nonprofit organizations.

Leadership Essential #15: A booster organization must distribute funds equally to all students, regardless of their individual participation in fundraising activities.

This excerpt from my book, The Booster Leader, 35 Leadership Essentials for a Thriving Booster Organization, explains why the IRS does not allow nonprofit organizations to operate with individual student accounts. Additionally, you’ll see the severe punishment the IRS dealt to three booster clubs for operating with individual student accounts.

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Would Your Booster Club Do This To Support The Community?

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Booster clubs serve a higher purpose that extends beyond providing funding and volunteer labor for extracurricular programs. Booster clubs make a positive impact on the rising generation, inspiring students to pursue and achieve things they may have never thought possible.

Occasionally, there are opportunities for booster clubs to meet immediate needs within their communities. Leaders of thriving booster clubs continually look for ways to involve their students in these community activities. When they do, students learn to look beyond themselves, and they establish a foundation for future volunteer leadership.

Let’s take a look at some booster clubs that have gone above and beyond to meet needs within their communities. Here are six recent examples:

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8 Ways to Communicate Your Booster Club’s Purpose to Parent Volunteers

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Last week, we saw how booster clubs can benefit from a best practice in the workplace: to engage parent volunteers by appealing to a higher sense of purpose. Tony Schwartz and Christine Porath found that “employees who derive meaning and significance from their work were more than three times as likely to stay with their organizations.”

The very essence of a booster club is serve a higher sense of purpose – to make an impact on the rising generation. Booster clubs who communicate this well to their parent volunteers realize significant benefits, and set themselves up to achieve their objectives each year.

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A Booster Club’s Most Valuable Attribute to Keep Parents Engaged

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In many ways, leading a booster club is like running a small business. As in business, you must attract and engage energetic, motivated people to achieve your booster club’s objectives. Today, let’s look to the workplace for best practices in engaging parent volunteers.

In a recent New York Times article, Tony Schwartz and Christine Porath set out to find Why You Hate Work. They were “curious to understand what most influences people’s engagement and productivity at work.” Through a survey of more than 20,000 employees, they found that people are most satisfied and productive when four of their core needs are met: physical, emotional, mental, and spiritual.

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Do You Empower Your Committee Chairs to Lead With Influence?

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Over the last couple of weeks, we’ve focused on the role of the committee chair. We’ve seen that committee chairs are on the front lines of a booster club, interfacing with parents and students. At the heart of every thriving booster club you’ll find hard working, dedicated committee chairs.

In my prior posts, we saw how Steve led a thriving Truck & Equipment Committee, and we learned the four attributes of an effective committee chair. Now, let’s examine how the executive team of officers can empower committee chairs and maximize their influence.

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Four Attributes for Recruiting Effective Volunteer Leaders

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In my last post, we examined the role of committee chair and its importance in a booster club. A committee’s success will rise and fall with the competency and dedication of its leader. Therefore, it is critical to fill each role with the right volunteer leader.

Last week, I shared how Steve led the Truck & Equipment Committee to unprecedented levels of success. Now, let’s take a look at four attributes that made him so effective in his role. These attributes apply to all committee chairs, regardless of the committee’s area of focus:

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What Are Your Committee Chairs Accomplishing?

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Committee chairs are some of the most influential leaders in a booster club. They are literally on the front lines, interfacing with parents and students. In many ways, your booster club’s success relies on your committee chairs. Once you select the right people for these roles, empower them to serve and give them your full support.

When I became the Blackman Band Boosters’ president, I was immediately faced with a predicament that led to one of the greatest success stories during my tenure. Over the prior couple of years, our Truck & Equipment Committee had dwindled to only two adult volunteers – parents of graduating seniors – and a hand full of students. The adult volunteers pulled our two equipment trailers to football games and events.

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Seven Reasons for Booster Leaders to Use the Cloud

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In his book, Creativity, Inc., Pixar Animation Studios president Ed Catmull shares a challenge of epic proportion – someone accidentally deleted every work-in-process file that comprised Toy Story 2. In an instant, 90% of the film was gone! Two years of his team’s work was lost. To make matters worse, the company’s backup system – their virtual safety net – also failed.

The Pixar team rose to the challenge and overcame this random, tragic event. They released Toy Story 2 on time, and it instantly became a major box office success. You’ll never imagine how they restored the lost data, but here’s a hint – you’ll find the answer in chapter eight.

Catmull and his leadership team learned several valuable lessons through this crisis, many of which extend beyond the scope of data storage and backup. But this example poses questions for every booster leader – Where do you store your data? Is it secure? Do you have a reliable system in place to protect it from loss?