5 Booster Club Mistakes That Could Land You in Hot Water

Many nonprofit organizations face costly and time-consuming lawsuits every year. Mistakes such as injuries to persons (torts) and officer and director liability can even result in a booster club’s closure. But did you know something as simple as a well-crafted booster club mission statement can help your club stay on the straight and narrow? Read on to learn of this and other ways to avoid mistakes that could land your booster in hot water.

Being part of a school booster club should be immensely rewarding, but challenges exist. The common pitfalls in club management are administrative oversights. Other usual slips concern mission and vision statement neglect and overlooking financial considerations (e.g., insurance). And poor relationships with key stakeholders can also be an issue. In this article, we explore how to navigate five common issues to help you avoid making or repeating mistakes.

5 Compliance and Best Practices Booster Clubs Get Wrong

Forming a new club is like ticking off a task on a to-do list. However, if your checklist lacks essential items, you risk stumbling in key areas of compliance and best practices. What might seem like a minor oversight could have considerable repercussions, including legal issues, financial risks, and strained relationships. Whether you’re starting a new booster club or struggling with the logistics of an existing one, knowledge is your friend.

Let’s review the five most commonly made booster club mistakes that clubs experience.

1. Neglecting to Register Your Nonprofit Organization

Booster club mistake number one is not registering as a nonprofit organization. At the last check, only 12% of boosters registered to become tax-exempt (501(c)(3) status) organizations. [1] This oversight can have far-reaching consequences. You lose legal recognition, hinder the club’s credibility, and weaken its ability to seek donations and partnerships. Moreover, non-compliance puts your club at risk of legal penalties and financial strain and might harm your core mission.

One reason for this mistake is a lack of awareness of the full benefits of tax exemption. Or, some clubs may lack the resources or expertise to complete the application process. Also worth noting is that neglecting registration may affect your relationship with the school you support. If that happens, you risk harming collaboration efforts with stakeholders.

How to Apply for Your 501(c)(3) Status

You need to file Form 1023. Filing for 501(c)(3) status takes a little time. If you find the process daunting, consult a tax advisor or nonprofit attorney for guidance.

Registration is well worth the effort, allowing your club to reap the following benefits:

1. Accept tax-deductible donations
2. Apply for grants from foundations/organizations
3. Become eligible for certain government programs/benefits
4. Benefit from reduced postage rates
5. Save on sales tax for tax purchases

Next, secure an EIN (a unique, IRS-assigned, 9-digit ID number). Create your bylaws (more on that next) for club operations and open a dedicated bank account. Lastly, maintain a well-organized corporate book with essential documents and financial reports.

Don’t Neglect Your Booster Club Bylaws

Booster club bylaws matter. They provide a framework of rules and regulations for running your club, but that’s not all. Bylaws help protect your organization and its members from legal liability. Clubs that overlook this critical document can have issues with financial mismanagement, loss of trust, and division among members. In a worst-case scenario, failure to adhere to your bylaws may lead to the club’s dissolution.

Bylaws are unique to each organization, but they should all include the following information:

• The club’s name and core purpose
• Qualifications for membership
• Titles and responsibilities of officers
• Meeting schedules and quorum criteria (minimum attendance)
• Financial procedures
• Processes for amending the bylaws

Point to note: Periodicallyreview and update your bylaws, especially if you’re a new group finding its way. This will ensure the bylaws reflect the current needs of your organization.

2. Overlooking Your Mission and Vision Statement

Booster club mistake two is neglecting the mission and vision statement. A well-crafted statement serves as a roadmap, guiding your club toward its goals of supporting a given activity or program. Without a clear ethos, your booster club will struggle to articulate its purpose and goals. This, in turn, will make it difficult to attract parent volunteers and garner support from the school community.

How to Write a Captivating Mission and Vision Statement

To avoid this mistake, create a new or improve a poor mission or vision statement that defines your organization’s identity. It should outline your objectives and provide a crystal-clear understanding of the club’s purpose to volunteers and supporters.

To do that, ensure your statement includes the following three components:

1. Clearly identify who you are
2. Define the group’s objectives
3. Tell volunteers and supporters why you exist

Booster Mission and Vision Statement Sample

“At XYZ High School Music Booster, we are a group of dedicated parents and volunteers, helping transform musical experiences for our beloved students, [who we are]. Our goal is to advocate music education through fundraising efforts, resources, and community building [objectives]. We invite you to join us in supporting, enriching, and inspiring the next generation of local musicians [why we exist + call to action].”

The example above is longer than usual to give you an idea of how it should be written. Although there is no strict rule about the length of these statements, being short, concise, and focused tends to have the most impact. Aim for one to two sentences to convey your core purpose and values.

Here are three shorter mission statements to get your creative juices flowing.

Football Booster Club Mission Statement

“[Name of Club] is the heart and soul behind the gridiron, empowering the stars of our football program through funding, training resources, and a supportive community.”

Gymnastics Booster Club Mission Statement

“[Name of Club] is passionate about elevating our talented gymnasts’ dreams one flip at a time with training resources and a supportive network.”

School Band Booster Mission Statement

“[Name of Club] is the driving force behind the band, enriching lives with joyful performances and music education. Join us today and help make a real difference.”

3. Failing to Name Your Executive Board

Booster club mistake number three is failing to name your executive board from the outset. Not having executive board members will inevitably hinder your club’s effectiveness, leading to disorganization and a lack of clear leadership.

How to Form and Name Your Executive Board

Select a board of motivated parents with the time and skills to fulfill each role. Start with three to four officers, including a president, vice president, secretary, and treasurer. This arrangement will provide a solid foundation for effective club governance and operations. Note that officer transitions typically occur every one to two years to bring fresh perspectives and growth.

It’s up to you to decide the specific roles of each position, but it will look something like this:

The roles outlined above provide a rough summary of your executive structure. Larger clubs may include other, more specific roles such as fundraising, communications, and volunteer chairs. In all cases, board members must fully understand their duties and responsibilities.

4. Not Establishing a Working Relationship with the School

Not having a good working relationship between your club and school officials hinders efforts and stifles collaboration. All successful boosters garner support from school officials for the students and extracurricular activities they fund.

How to Establish a Working Relationship with the School

To avoid or rescue your organization from this mistake, establish meaningful relations with the school ASAP. It doesn’t need to be overly formal or complicated. Arrange a meeting with school officials to discuss your goals and show your unwavering support for extracurricular activities. Remember, clubs that maintain healthy, productive partnerships with schools fare better than those that don’t.

5. Avoiding Booster Club Insurance

Not securing adequate insurance can be a costly mistake. While not required, coverage safeguards your club’s financial assets and protects its members against unforeseen risks. Having protection also lets you operate with peace of mind. Moreover, proper insurance instills confidence in members and donors, reinforcing your organization’s sustainability and responsible governance.

Without coverage, your club is vulnerable to liability claims, property damage, or unexpected emergencies. The good news is that booster club insurance is adaptable and reasonable.

The table below lists the affordable insurance types by AIM, America’s most trusted carrier. The company covers thousands of boosters across all 50 US states. It offers protection for events, property, and club finances, plus liability protection for club members.

Types of Booster Club Insurance

How to Apply for AIM’s Affordable Coverage

To get an instant quote or apply for one of AIM’s booster insurance packages, start on the insurance tips page to determine where your organization’s needs lie.

Other Booster Club Mistakes to Avoid

The five mistakes above are the most common, but there are other missteps to watch out for. Make sure your club is highly visible to avoid isolating it from potential supporters. Fundraise thoughtfully, as excessive campaigning will end up losing you support. Follow accounting best practices, respect boundaries, and clarify volunteer roles. Lastly, always follow state, federal, and district policies and procedures.

In Conclusion

Effective booster club management avoids common mistakes leading to legal, financial, and IRS issues and a lack of community support. By avoiding the five missteps outlined in this guide, your organization will operate effectively, fulfill its mission, and have a better chance of ensuring long-term sustainability.

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Resource Links

1. https://nccs.urban.org/12-percent-of-boosters-not-registered/

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