How to Start a Nonprofit Booster Club for School Dance & Cheer Programs

A Step-by-Step Guide to Forming Your Organization, Applying for 501(c)(3) Status, and Fundraising with Zeffy

Running a school dance program is expensive.

Costumes, choreography, travel, performances, equipment, workshops, banquets and countless smaller expenses can quickly stretch a school budget. For many programs, a strong nonprofit booster organization can become one of the most valuable tools for creating additional opportunities for students.

While this guide is written primarily with school dance programs in mind, the same framework can also be useful for cheerleading, spirit, pom, song and other school-based performance programs that rely on booster support.

But there is a big difference between simply having a group of parents who fundraise and building an organized nonprofit booster club with its own financial structure, governing board and federal tax-exempt status.

This guide breaks down the basic process of forming a booster organization, applying for federal 501(c)(3) recognition, and setting up fundraising tools that can help more of the money you raise actually stay with your program.

Important: This article is for educational purposes only and is not legal, tax or accounting advice. Booster club requirements vary by state and school district. Always review your district policies and applicable state requirements before creating or operating an organization.

Does Your Dance or Cheer Program Need a Booster Club?

Not every school program does.

Some school districts provide substantial financial support directly through school ASB accounts. Others allow programs to raise and spend funds through ASB student-body organizations or other district-managed structures.

For programs that need additional community support, however, an independent booster organization can potentially help parents and supporters:

  • Raise money for student opportunities
  • Seek donations and sponsorships
  • Organize fundraising events
  • Sell merchandise
  • Support travel and performances
  • Help fund costumes, uniforms and equipment
  • Build relationships with alumni and community supporters
  • Create continuity as students and families cycle through the program
  • Keep booster finances separate from an individual coach, director or parent

Your first step should always be checking with your school or district. Some districts have detailed booster club policies covering everything from naming and insurance to financial reporting, use of school logos, fundraising approval and how closely the booster organization may interact with the school program.

For my own high school dance program, the parents and I got together in 2015 to create a dance booster club organization using our school district guidelines… primarily because we found it extremely difficult to operate under ASB restrictions (i.e. the rules for fundraisers were ridiculous). And once fundraiser money went into our ASB dance team club account, we found it even harder to get that money back out to pay for things like uniforms, costumes, competition registration fees, choreography, and travel/lodging fees associated with travel to Nationals and summer workshops. Sometimes it would take up to three weeks just to get a check sent from our ASB count. And that was definitely just insane and pointless.

PART 1: Build the Organization Before You Start Fundraising

One of the easiest mistakes to make is jumping directly into collecting money.

Instead, establish the organization first.

A typical pathway may include the following.

1. Assemble a Board

A nonprofit booster organization should have people responsible for governance and financial oversight.

Common positions include:

  • President
  • Vice President
  • Treasurer
  • Secretary

Your school district or state may have additional requirements. The goal is to avoid having one parent or one coach controlling the entire organization. Multiple adults should have defined responsibilities and oversight.

2. Create Governing Documents

Your booster organization should establish bylaws explaining how it operates.

These may address:

  • Officer responsibilities
  • Elections
  • Terms of office
  • Meetings
  • Voting
  • Membership
  • Committees
  • Financial controls
  • Conflict-of-interest procedures
  • Record keeping
  • How amendments are made

If your organization intends to apply for federal 501(c)(3) recognition, your organizing documents also need to satisfy IRS requirements regarding charitable purposes and what happens to organizational assets if the nonprofit dissolves.

The IRS requires qualifying organizations to be organized for exempt purposes and to permanently dedicate assets to qualifying exempt purposes. IRS

3. Legally Form the Organization

This process varies by state.

Many booster organizations form as nonprofit corporations with their state’s appropriate filing agency.

This is an important distinction:

Creating a nonprofit organization at the state level does not automatically make the organization federally tax exempt.

State nonprofit formation and federal 501(c)(3) recognition are two different steps.

Your state may also require separate registrations for charitable solicitation, taxes or annual nonprofit reporting.

4. Get an EIN

Your booster organization will generally need its own Employer Identification Number, commonly called an EIN.

Despite the word “Employer,” your organization does not need employees to obtain one.

The EIN acts as the organization’s federal tax identification number and is used for things such as:

  • Opening organizational bank accounts
  • Federal filings
  • Applying for 501(c)(3) recognition
  • Identifying the organization to financial institutions and vendors

Do not pay an unnecessary third-party company just to obtain an EIN. The IRS issues EINs directly.

[APPLY FOR AN EIN THROUGH THE IRS]

PART 2: Applying for Federal 501(c)(3) Non-Profit Status

This is the part that tends to intimidate booster volunteers.

The good news is that smaller organizations may qualify for a streamlined application.

The IRS currently provides two primary pathways for organizations seeking recognition under Section 501(c)(3):

  • Form 1023-EZ
  • Form 1023

All organizations seeking federal 501(c)(3) recognition may use Form 1023, while certain qualifying smaller organizations may use the shorter Form 1023-EZ. Both are submitted electronically through Pay.gov. IRS

Could Your Booster Club Qualify for Form 1023-EZ?

Before filing Form 1023-EZ, organizations must complete the IRS Form 1023-EZ Eligibility Worksheet.

Among other requirements, an organization generally cannot use Form 1023-EZ if:

  • It expects annual gross receipts to exceed $50,000 in any of the next three years
  • Its annual gross receipts exceeded $50,000 in any of the previous three years
  • Its total assets exceed $250,000

There are additional eligibility questions, so meeting those financial thresholds alone does not guarantee eligibility. If the organization answers “Yes” to any question on the eligibility worksheet, it must use the full Form 1023 instead. IRS

[VIEW THE FORM 1023-EZ ELIGIBILITY WORKSHEET]

Current IRS Filing Fees

As of this article’s publication:

Form 1023-EZ: $275
Form 1023: $600

Both fees are paid electronically through Pay.gov when the application is filed. The IRS notes that these fees are subject to change, so always verify the current amount before submitting. IRS

VIDEO: How to Apply for 501(c)(3) Status for Your Booster Club

In the video below, I walk through the federal application process, including:

  • The difference between forming a nonprofit and obtaining 501(c)(3) recognition
  • EIN requirements
  • Form 1023-EZ eligibility
  • The Pay.gov filing process
  • Organizational structure
  • Describing your booster club’s activities
  • Public charity classification
  • Common areas where organizations should slow down and seek professional advice

[HOW TO VIDEO COMING SOON]

Suggested Video Title:
How to Start a Nonprofit Booster Club for Dance & Cheer | 501(c)(3) Step-by-Step

Do Not Guess Your Way Through the Application

Some parts of the federal application are straightforward. Others are not. One area that deserves extra attention is your organization’s public charity classification.

Every 501(c)(3) organization receives a foundation classification, and public charities can qualify under different public-support tests depending on how the organization receives its revenue.

A booster organization receiving donations, fundraising revenue, membership income, sponsorships or other revenue should evaluate its actual financial structure rather than simply copying another booster club’s application. The same caution applies to questions involving:

  • Compensation
  • Payments benefiting individuals
  • Scholarships
  • Grants
  • Political activity
  • Lobbying
  • Fundraising
  • Foreign activity
  • Revenue sources
  • Related organizations
  • Benefits provided to specific students

If you are unsure how your organization should answer a tax or legal question, this is where a qualified nonprofit attorney, CPA or experienced tax professional may be worth the expense.

PART 3: Can You Begin Fundraising While Your 501(c)(3) Application Is Pending?

Potentially, yes… And this is one reason I became interested in Zeffy.

A new booster club organization does not necessarily have to wait until its federal 501(c)(3) determination is complete before beginning to organize its fundraising platform.

Zeffy currently allows eligible nonprofit organizations to use its fundraising tools while their formal tax-exempt status is still being established, provided they meet the platform’s eligibility and verification requirements.

That means a newly formed booster club may be able to begin building forms, collecting registrations and organizing its fundraising systems while the federal application is still being processed.

Once federal status is approved, the organization’s information can be updated appropriately within the platform.

PART 4: Why We Use This Payment Processor

In addition to using it to collect DTWEF event registration fees and audience ticketing, my own dance booster organization at Mark Keppel High School uses Zeffy to manage our school dance program’s fundraising efforts.

What originally caught my attention was simple:

Zeffy does not charge nonprofits platform fees, transaction fees or credit-card processing fees.

Instead, supporters are given the option to make a voluntary contribution to Zeffy during checkout. That contribution is optional, and Zeffy states that the nonprofit still receives the full amount intended for the organization. Zeffy

For school programs where every dollar matters, those processing fees can add up quickly.

If your booster raises money through donations, ticket sales, events, silent auctions, dance clinics, and merchandise throughout the year, keeping more of that revenue inside the program can make a meaningful difference. It has been a game changer for my own dance program.

Affiliate Disclosure: Dance Team World may receive a referral reward if an eligible nonprofit signs up for Zeffy through one of our referral links. This does not increase the cost to your organization.

[TRY ZEFFY FOR YOUR NONPROFIT BOOSTER CLUB]

PART 5: More Than Accepting Donations

This is probably one of the biggest misconceptions about the platform. Because Zeffy is not simply a donation form. It is an all-in-one nonprofit fundraising system that can potentially replace several different tools a booster organization might otherwise pay for separately.

Depending on the needs of your organization, Zeffy includes tools for activities such as:

  • Online donations
  • Recurring donations
  • Event registration
  • Ticket sales
  • Memberships
  • Peer-to-peer fundraising
  • Online sales
  • Auctions
  • Raffles where legally permitted
  • Donor and contact management
  • Email communications
  • Newsletter signup forms
  • Contact segmentation
  • Event check-in
  • QR-code ticketing
  • In-person payments
  • Fundraising pages / Fundraiser Buy-outs

Zeffy describes its platform as free for nonprofits, including card and transaction processing, with its revenue coming from optional supporter contributions.

For a school dance, cheer or spirit program, that creates a lot of possibilities.

Ways a Dance/Cheer Booster Club Could Use Zeffy

Fall

  • Youth dance or cheer clinic registration
  • Homecoming fundraiser
  • Alumni performance registration
  • Sponsorship campaign
  • Merchandise sales

Winter

  • Holiday show ticket sales
  • Competition travel fundraising
  • Community donation campaign
  • Sponsorships
  • Banquet reservations

Spring

  • Concert or showcase tickets
  • Senior celebration
  • Awards banquet
  • Audition clinic registration
  • Youth workshops

Summer

  • Summer camp registration
  • Team clinics
  • Alumni giving campaign
  • Sponsorship renewals
  • Membership enrollment

Year-Round

  • Donations
  • Merchandise
  • Parent contacts
  • Alumni contacts
  • Newsletter lists
  • Sponsor records
  • Fundraising campaigns

VIDEO: How I Use Zeffy for My Own School Dance Program

Instead of just explaining what the platform can do, I am going to show you. In the walkthrough below, I take you inside the system I’ve personally built for my dance parent booster organization at Mark Keppel High School in California. And explore how the different tools can fit into your own school-based program.

[START YOUR ZEFFY ACCOUNT]

PART 6: Think Beyond Fundraising Forms

One of the biggest advantages of using one centralized platform is that fundraising activity can become part of a larger contact-management system.

For example, someone might:

  • Donate to your program
  • Buy a concert ticket
  • Register a younger dancer for a clinic
  • Purchase merchandise
  • Attend an alumni event
  • Become a booster member
  • Subscribe to your updates

Over time, those interactions can help your booster build a much stronger network of families, alumni and community supporters. Instead of starting from zero every time you need to raise money, you begin building an actual community around the program. That can become incredibly valuable over several years.

PART 7: Zero Processing Fees Does Not Mean Zero Responsibility

Software does not replace good financial controls. Even if your booster uses a platform like Zeffy, the organization still needs responsible governance.

Consider practices such as:

  • Keeping organizational and personal finances completely separate
  • Requiring multiple adults to review financial activity
  • Maintaining accurate books
  • Reconciling bank statements
  • Keeping receipts
  • Approving expenditures properly
  • Recording meeting minutes
  • Maintaining board records
  • Following district fundraising policies
  • Maintaining required state registrations
  • Filing required federal and state reports

Your booster organization should never become one person’s personal fundraising account. The entire point of creating a nonprofit structure is accountability.

PART 8: Your Responsibilities Continue After 501(c)(3) Approval

Receiving an IRS determination letter is not the finish line. Tax-exempt organizations generally have ongoing federal and state responsibilities.

Depending on the organization, those may include:

  • Annual IRS Form 990-series filings
  • State nonprofit filings
  • Charitable solicitation registrations
  • Corporate filings
  • Board meetings
  • Financial records
  • Meeting minutes
  • Conflict-of-interest procedures
  • School district reporting


Maintaining exempt status requires ongoing compliance. Build those habits from the beginning rather than trying to recreate records several years later.

PART 9: Should Coaches or Directors Run the Booster Club?

This is where every school should pay attention to its district policies. A booster organization exists to support the school program, but it should not simply become an extension of the coach or director’s personal finances.

Ideally, there should be clear separation between:

The educational/programmatic side:
Led by the school’s coach, director or teacher.

The nonprofit governance and financial side:
Managed by the booster board under applicable school and nonprofit rules.

The coach or director can communicate what the program needs, but appropriate checks and balances protect everyone involved. That includes the students, families, board members and school employees.

Part 10: What About Cheer, Pom, Song and Spirit Programs?

Although Dance Team World primarily serves the school dance community, many school programs do not fit neatly into a single category.

Some dance teams operate independently. Others are housed within:

  • Cheer programs
  • Spirit programs
  • Pep programs
  • Athletics departments
  • Performing arts departments
  • Dance departments
  • Activities offices

That is why the booster principles in this guide can apply beyond traditional dance teams.

Whether your students perform jazz, pom, hip hop, kick, cheer, song, sideline routines, concert dance or a combination of several styles, the underlying nonprofit structure is largely about supporting student opportunities responsibly.

Part 11: A Strong Booster Can Create More Opportunities for Students

The point of creating a nonprofit booster organization is not to create more paperwork.

The goal is to build a structure that makes it easier for families, alumni and community supporters to invest in students while also creating accountability around how that money is raised and spent.

Whether your program:

  • Competes
  • Performs at football games
  • Produces concerts
  • Travels
  • Attends workshops
  • Hosts youth clinics
  • Participates in community events
  • Supports inclusive programming
  • Or simply needs more resources inside the classroom

A well-run booster organization can become an incredibly valuable partner.

And the more efficiently your organization raises money, the more of those resources can actually reach your students.

Part 12: Helpful Resources & Links

Federal Nonprofit Resources

[IRS: HOW TO APPLY FOR 501(c)(3) STATUS]

[IRS: FORM 1023-EZ ELIGIBILITY INFORMATION]

[IRS: FORM 1023 INFORMATION]

[PAY.GOV]

Fundraising

[START FUNDRAISING WITH ZEFFY]

Dance Team World

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Stay Connected

Dance Team World is continuing to build practical resources for the educators, coaches and directors running school dance programs, dance studios, and all-star dance programs every day.

Future Director’s Desk topics will explore fundraising, booster organizations, auditions, recruiting, team management, performances, professional development, leadership and other issues that affect school dance programs beyond the competition floor.

Have a topic you would like us to explore?

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