The Ohio Attorney General, exercising the rule-making authority of his office, has significantly modified the administrative rule relating to the registration of school booster organizations as “charitable trusts.” Under the prior rule, school booster clubs were exempted from registration. Under the amended rule, which became effective on August 10, 2012, school “booster clubs” which have gross receipts of $25,000 or more in any taxable year OR which hold $25,000 or more in assets at the end of any taxable year must now register with the Attorney General. The rule change applies not only to athletic booster groups but also to PTAs and alumni groups.
Booster organizations required to register as “charitable trusts” will now be subject to a number of reporting requirements. Specifically, such booster groups will be required to
- file an annual report, including certain tax information
- submit copies of documents, including any applicable articles of incorporation, bylaws, or constitution (with subsequent amendments), and a copy of the IRS determination letter of tax exempt status, if available
- notify the Attorney General of any revocation of tax-exempt status by the IRS
- notify the Attorney General of the dissolution of the organization, together with a report on the final distributions
- pay an annual fee of between $50-$200 (depending on amount of assets held).
School booster groups subject to the new rule are required to register within six months of their creation or within six months after they meet the minimum dollar threshold for reporting. See Ohio Adm. Code 109:1-1-02(A).
Registration is to be performed on the Attorney General’s web site at this address.