Fundraising, Management Issues/dance team fundraising

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Question
I am setting up a dance booster club to support my daughter's dance team with competition fees. The team will fundraise and will be divided equally among all dancers. I obtained a EIN or TAX ID number soley so I could open an account for the booster club to hold all money raised. Am I required to apply for tax exempt status with the IRS or California State Tax Board? We would expect that are fundraising totals would be under $5000 for the year. Thank you

Answer
Carrie,

You do not need to apply for federal tax exemption (501 c 3) status.  Unless, people want to deduct their donations from their income tax.  As a New Yorker, I am unable to advise you about the California Tax Board.  

Good luck with your efforts.

marlinrob@aol.com

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Rob Taylor

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During the past 25 years I have helped scores of non-profit organizations experience dramatic fund-raising growth by improving the manner in which they identify, cultivate and solicit individual and institutional prospects. I am willing to provide fund-raising advice to colleges, social service agencies, hospitals, and cultural organizations.

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