Signed in as:
filler@godaddy.com
Signed in as:
filler@godaddy.com
Happy Summer! We hope this school year wrapped up well and you all enjoyed a wonderful Memorial Day weekend. Here are some reminders and information as you head into the summer. Please read it to the end.
Our next GPS VNet Expo and Mandatory District Training will be on Saturday, August 1st at Highland High School from 8am - 12pm. Registration will be open in July, but add this important date to your calendar now and share this information with your Board!
For profit companies target small nonprofits and send a notice in the mail or an EMAIL asking for you to send them money to stay in good standing with the AZ Corporation Commission or receive a certificate of good standing. Some offer to file your taxes for you and also charge a fee. NONE of these services are required. We encourage you to file the forms on your own and save the money for your organization.
Federal: File your 990N ($50k or less in income), 990 EZ (more than $50k income), or 990 (more than $200k income) form on IRS.gov. Here is a LINK to all the 990 forms and PDFs with the various instructions on how to file, depending on which one you need to file. You must login to your account to access the electronic version of the forms and file electronically.
Arizona: You do NOT need to file an income tax form. BUT you must file your annual report (and update your board information for the new year) with the AZ Corporation Commission and pay the $10 fee. Click HERE to file your annual report. Attached is a PDF with step by step instructions for filing your annual report.
If you need help with your filings, please email gpsvnet@gmail.com and we can answer specific questions.
What if you are totally done with your organization, but you helped start it or have been the responsible party (filed the paperwork) with the IRS?
· You can file the 8822-B 8822-B Change in Responsible Party – When you change board members, you most likely will need to update who is the responsible person for the EIN. This person will have access rights and communication privileges with the IRS regarding your Organization. New responsible party fill out and mail in. https://www.irs.gov/pub/irs-pdf/f8822b.pdf
*Summer Fundraising:
-Pogo Passes (great for summer activities)
-Restaurant Nights
-Summer Pool Party
-Car Wash
*Order new Spirit Wear for new school year
*Prep binders/flyers/info for the new school year, Update Google Drive
*Work on Sponsorships - This is a great time to get your new packet to businesses, send out to parents, and have it ready to hit the ground running when school starts
*Prep Welcome Back events or start of season events
*FILE your AZ Corp Commission Annual Report and your 990 form, if you have not already done it
*Make sure the annual audit was completed. Review with your new board for the new school year.
This is rooted in the federal tax code and upheld by U.S. Tax Court. [1, 2]
These exact rules and guidelines are written and detailed in the following places:
1. Internal Revenue Code (IRC) § 501(c)(3)
The foundation of this rule is the "Private Benefit Doctrine" found in the federal tax code. To keep tax-exempt status, the law requires that an organization be organized and operated "exclusively" for charitable or educational purposes. The IRS interprets this to mean that the organization must serve a public interest, not a private interest.
2. IRS Field Directive on Booster Clubs (2011)
The IRS issued a strict, official directive specifically addressing this issue. The IRS Field Directive on Booster Clubs explicitly states that crediting amounts raised by a participant toward that participant's personal dues or travel costs constitutes an impermissible "private benefit" and can result in the club losing its tax-exempt status.
3. Treasury Regulations (Treas. Reg. § 1.501(c)(3)-1(c))
These regulations dictate that a charity must not be operated for the benefit of private interests. If a booster club raises funds and uses those funds to selectively reduce the personal costs of only the families who volunteered or fundraised, it violates this operational test by conferring substantial private benefits.
4. U.S. Tax Court Precedent
The IRS position was strongly affirmed in a landmark U.S. Tax Court case (Capital Gymnastics Booster Club, Inc. v. Commissioner). The court ruled that a booster club operating a "point system" (where funds raised by parents directly offset their individual child's gymnastics fees) was providing impermissible private benefits and revoked the club's 501(c)(3) status.
Boosters can NOT spend money on the school, teachers, staff, staff appreciation, or any other “good” cause. Below are the Federal and State Regulations that state this:
1. Federal Law: The "Exclusively" Rule: Treasury Regulation § 1.501(c)(3)-1(c)(1) clarifies that "exclusively" means "primarily." An organization will fail the operational test if more than an insubstantial part of its activities is not in furtherance of an exempt purpose. Spending money outside the mission violates this rule.
2. Arizona Nonprofit Corporation Act (A.R.S. Title 10)
Most formal booster clubs in Arizona incorporate as nonprofits through the Arizona Corporation Commission (ACC). Under this act:
3. Arizona Department of Revenue (ADOR) Alignment
To avoid paying state income tax, Arizona booster clubs must maintain tax-exempt status.
THANK YOU FOR ALL THAT YOU DO!
If you have any questions or need help this summer, please email us at GPSVNET@gmail.com
Copyright © 2026 Gilbert Public Schools Volunteer Network - All Rights Reserved.