Fundraising, Management Issues/dance team fundraising
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
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.