Independence mustangs booster club pro pick raffle: a treasurer's guide

Last updated 2026-08-14

what is a 'pro pick' raffle and is it legal for a booster club to run one

A pro pick raffle is a fundraiser where participants pay to guess winners of upcoming pro football or basketball games (sometimes against the spread, sometimes straight-up), and whoever gets the most right, or wins a random draw among correct entries, takes a cash or prize pot. Booster clubs like an Independence Mustangs group like this format because it's cheap to run, people already watch the games, and it can repeat weekly through a season. Here's the catch: this is still raffle-style gambling under state law, even though it feels like a football pool among friends. Most states classify any game where you pay for a chance at a prize based partly on chance (which games get picked, how ties get broken) as a raffle or lottery activity, and most states require a nonprofit to hold a raffle license or charitable gaming permit before selling a single ticket ^[1][2]. A few states allow small 'social gambling' or informal pools without a license under narrow dollar thresholds, but a booster club charging admission and paying out a cash prize almost never qualifies as informal. The fix isn't complicated, it's just a step people skip. Before your Mustangs booster club runs a pro pick contest for money, call your state charity office or gaming commission and ask directly: does a weekly pro-pick contest with a cash prize require a raffle license here, and what's the process. Get the answer in writing (email is fine) and keep it in the club's files. That single email has saved more treasurers from a headache than anything else on this list.

what does a treasurer do for a raffle fundraiser like this

The treasurer's job on a pro pick raffle is narrower than people assume: track money in, track money out, and keep records clean enough that anyone auditing later can follow the trail without asking you to remember anything. Concretely, that means: a numbered ticket log (or spreadsheet) showing who bought in, how much, and when; a separate bank sub-account or clearly labeled ledger line for raffle proceeds so it doesn't blur with concession stand cash or booster dues; a written record of the prize payout, including the winner's name and the amount, with a signature if the payout is over a threshold your state sets (some states require winner ID and a W-2G-style form above certain amounts, similar to casino reporting; confirm the exact dollar trigger with the IRS and your state charity office) ^[3]; and receipts for any license fee or bond the state required. A lot of booster treasurers try to run this from memory and a shoebox of cash. Don't. Two people should touch raffle money at every step, one selling and collecting, one counting and depositing, so no single volunteer is ever the only person who can vouch for where the cash went.

what is a treasurer, exactly, in a booster club or PTO

A treasurer is the volunteer (rarely paid) officer responsible for the club's money: collecting it, recording it, depositing it, paying bills from it, and reporting on it to the board and, eventually, to the IRS and state regulators. It is not a bookkeeping hobby job, it's the position that keeps the whole organization's finances defensible if anyone ever asks to see them. Most booster club bylaws define the treasurer's authority narrowly on purpose: sign checks under a certain dollar limit, present a written report at every meeting, and never move money without a second signature above a threshold the board sets. That's the healthy version. The unhealthy version, seen constantly in booster club handoffs, is one person running everything through a personal Venmo for years with no board oversight at all.

what do treasurers do day to day, week to week, season to season

Day to day, a treasurer deposits cash from concessions, gate fees, or raffle sales within a few days (not weeks), reconciles the bank statement against the ledger every month, and pays vendor invoices with two people signing off if the club's bylaws require it. Week to week during football or basketball season, that's the pro pick raffle cycle: collect entries, lock the picks before games start, verify winners against actual game outcomes, pay out promptly, and log everything the same week rather than batching it up for 'later.' Later is where records get lost. Season to season, the treasurer prepares a year-end financial summary for the board, files (or hands to a preparer) the club's annual IRS return, whether that's the simple Form 990-N e-postcard for small orgs under $50,000 in gross receipts, or the full Form 990 or 990-EZ for bigger budgets ^[4], and files whatever renewal paperwork the state raffle license requires for next season.

what does a club treasurer do that's different from a company bookkeeper

A club treasurer wears more hats than a corporate bookkeeper because booster clubs are all-volunteer and small. You're more than recording transactions, you're often the only person who knows why a transaction happened (this $340 was the raffle license fee, that $1,200 was uniforms), and you're the one who has to explain it to a room of parents at the next meeting. A company bookkeeper reports to a controller or CFO who catches errors. A booster treasurer often reports to a volunteer board that has no accounting background at all. That's exactly why documentation matters more here, not less: write down what each deposit and payment was for, in plain language, at the time you make it. Six months later nobody remembers what 'misc deposit $85' means, including you.

how do you get a state raffle license for a pro pick contest

Every state that regulates raffles has its own application, fee, and eligibility rules, and there is no federal raffle license, this is entirely state-level. Typical requirements include: proof the organization is a nonprofit (often your IRS determination letter or state nonprofit registration), a named person responsible for the raffle, disclosure of how proceeds will be used, and sometimes a bond or per-raffle reporting after the event closes. Some states license by the calendar year and let a qualifying nonprofit run unlimited raffles under one permit; others require a separate application per raffle event, which matters a lot for a weekly pro pick contest that runs all football season. If your state requires per-event licensing, ask specifically whether a season-long weekly pick contest counts as one continuous raffle or sixteen separate raffles, because the fee and paperwork burden are very different. Call your state's charitable gaming division or attorney general's charity office directly and ask for the raffle license application for nonprofits, and confirm renewal timing before you plan a multi-week contest around it ^[1][2]. Don't rely on what another booster club in a different state told you worked for them; raffle law is genuinely state by state, and what's fine in one state is a misdemeanor gambling violation in another.

what is Form 990 and why does a raffle-running booster club need to know about it

Form 990 is the annual information return the IRS requires from most tax-exempt organizations, reporting revenue, expenses, and activities so the public and IRS can see how a nonprofit is run ^[5]. For a booster club, raffle proceeds count as gross receipts, and gross receipts (more than membership dues) determine which version of the form you file. The IRS breaks it down by size: organizations with gross receipts normally $50,000 or less can file the Form 990-N electronic postcard, which asks only basic identifying information ^[6]. Organizations above that threshold, up to $200,000 in gross receipts and under $500,000 in total assets, generally file Form 990-EZ or the full Form 990; larger ones file the full form regardless ^[7]. A single successful raffle season can push a small booster club over the $50,000 line unexpectedly, which is a common surprise for treasurers who assumed they'd stay in 990-N territory forever. As the IRS puts it plainly on its exempt organizations site, most tax-exempt organizations 'are required to file an annual information return known as the Form 990-series' ^[5]. Miss three years of filing in a row and the IRS automatically revokes the exempt status, which is its own separate mess to fix (a topic worth its own read if your club has fallen behind: see our irs form 990 filing guide).

what is the 990 tax form used for, specifically

The 990 series exists so the IRS and the public can verify a tax-exempt organization is actually operating the way it claimed when it applied for exemption, and that it isn't funneling money to insiders. It reports total revenue by source (dues, raffle and fundraiser income, sponsorships), total expenses by category, and, on the longer forms, compensation for officers and details on major fundraising events. For a booster club running a raffle, the raffle almost always needs its own line item disclosure once you're above the 990-N tier, because the IRS treats gaming and raffle income as reportable fundraising activity requiring detail on gross receipts, direct expenses (prizes, license fees), and net income, often on Schedule G of the full Form 990 or 990-EZ ^[7]. This is exactly the kind of detail a treasurer wants clean records for well before tax season, not scrambled together in March.

what does a treasurer do if the raffle triggers gaming or excise tax questions

Cash prizes above certain amounts can trigger federal withholding and reporting obligations similar to casino winnings; the IRS requires payers to report certain gambling winnings on Form W-2G, and withholding can apply above specific thresholds that vary by type of wager . A booster club running a pro pick raffle should ask directly, before the season starts, whether prize amounts they're planning to pay out cross any reporting or withholding threshold under IRS guidance, since it depends on prize size and odds, more than on being a nonprofit . This is one of the areas where 'ask the IRS and your state charity office directly' isn't boilerplate, it's the actual right move, because thresholds and forms genuinely change and a booster treasurer guessing wrong can leave the club owing back withholding it never collected from the winner.

how should a booster club document a pro pick raffle for handoff to the next treasurer

Booster club treasurers turn over constantly, often every year or two as kids graduate, and a raffle with weekly cash payouts is exactly the kind of program that falls apart during a handoff if it only lives in one person's head. Build a simple folder (physical or shared drive) with: the state raffle license application and approval letter, the year's ticket/entry log, a payout log with winner names and amounts, bank deposit slips matching each week's collections, and a one-page 'how we run this' instructions sheet written for someone who has never done it before. That last document matters more than people think; the person taking over next August wasn't in the room when you figured out how to break ties on pro pick contests, and they shouldn't have to reinvent it. This is the kind of groundwork a treasurer kit is built for: BoosterLedger's $99 one-time State-Personalized Treasurer Kit bundles the raffle recordkeeping templates, 990 filing checklists, and handoff documents so a new Mustangs booster treasurer isn't starting from a blank page every season.

what does a treasurer of a club do when something goes wrong (records lost, prize disputed, filings missed)

When records go missing, the treasurer's job is damage control through documentation, not panic. Pull whatever bank statements exist, reconstruct what you can from deposit dates and amounts, and be honest with the board about the gaps rather than papering over them with guesses. When a raffle winner disputes a payout or a tie-break, the treasurer should have a written rule set from before the contest started (how ties are broken, what happens if a game is postponed or canceled) that everyone agreed to, ideally posted where entrants could see it when they paid in. No written rule means every dispute becomes a judgment call, and judgment calls made after the fact look bad even when they're fair. When filings are missed, the club may face IRS auto-revocation after three consecutive years of not filing a required 990-series return ^[6]. Recovery is possible (there's a streamlined retroactive reinstatement process for small organizations under Rev. Proc. 2014-11, confirm current details with the IRS), but it takes real paperwork and sometimes a fee, and it's much cheaper to just file on time.

Frequently asked questions

What does a treasurer do in a booster club?

A booster club treasurer collects and deposits money (dues, concessions, raffle sales), keeps a ledger of income and expenses, pays approved bills, reports finances to the board regularly, and handles the club's annual IRS filing (Form 990-N, 990-EZ, or Form 990 depending on gross receipts). They're the person accountable for where the money went.

Is a pro pick raffle legal for a booster club to run?

It can be, but almost every state treats a paid pro-pick contest with a cash prize as raffle or charitable gaming activity requiring a license, not an informal pool. Confirm directly with your state charity office or gaming commission before charging entry fees; requirements and exceptions vary widely by state.

What is Form 990 and does a small booster club need to file it?

Form 990 is the IRS's annual information return for tax-exempt organizations, reporting revenue, expenses, and activities. Small booster clubs with gross receipts normally $50,000 or less generally file the simplified Form 990-N e-postcard instead of the full form, but clubs above that threshold must file 990-EZ or Form 990.

What is the 990 tax form actually used for?

It lets the IRS and the public confirm a tax-exempt organization is operating consistently with its exempt purpose, showing revenue sources, spending, and (on longer versions) fundraising event and officer compensation detail. Raffle income typically needs its own disclosure line once a club is above the 990-N filing tier.

What happens if our booster club's raffle pushes us over the 990-N threshold?

If gross receipts (including raffle proceeds) exceed $50,000 for the year, the club generally must file Form 990-EZ or the full Form 990 instead of the 990-N e-postcard. This can happen unexpectedly after one strong raffle season, so check total gross receipts before assuming last year's filing form still applies.

Do we need a state raffle license for a weekly pro pick contest all season?

Almost certainly yes if you're charging entry and paying a cash prize, but whether one license covers the whole season or you need one per event depends entirely on your state. Ask your state charity office directly whether a recurring weekly contest counts as one continuous raffle or multiple separate raffles.

What records should a treasurer keep for a raffle fundraiser?

Keep a numbered entry/ticket log, a separate ledger line for raffle proceeds, deposit slips matching each collection, a payout log with winner names and amounts, the state license application and approval, and any winner ID or tax forms required above your state's prize reporting threshold.

What's the difference between a treasurer and a bookkeeper in a booster club?

A bookkeeper just records transactions; a booster club treasurer also explains those transactions to a volunteer board, ensures state and IRS filings happen, sets up dual-control money handling, and is often the only person who understands why each entry exists. The role carries more accountability than the title suggests.

Can a booster club lose its tax-exempt status over raffle filing mistakes?

Not directly from a raffle mistake alone, but failing to file a required Form 990-series return for three consecutive years triggers automatic IRS revocation of tax-exempt status. Since raffle income counts toward gross receipts and filing obligations, sloppy raffle recordkeeping often contributes to missed or wrong filings that lead there.

What is a 990-N and how is it different from a full 990?

Form 990-N is a short electronic postcard for tax-exempt organizations with gross receipts normally $50,000 or less, asking for basic identifying information only. The full Form 990 (or 990-EZ for mid-sized orgs) requires detailed revenue, expense, and program reporting, including fundraising event schedules like Schedule G.

Who is responsible if a booster club raffle winner isn't paid or a dispute happens?

The treasurer and the raffle's named responsible officer (often required by the state license application) are responsible for resolving disputes according to rules set before the contest started. Having a written, posted rule set on tie-breaks and payout timing before selling entries prevents most disputes from becoming real problems.

Does the IRS require withholding on raffle prize payouts?

Cash prizes above certain thresholds can trigger federal reporting on Form W-2G and possible withholding, similar to other gambling winnings, but the exact dollar thresholds depend on prize size and the type of wager. Confirm current thresholds directly with the IRS before running a contest with a large cash prize.

Sources

1. National Conference of State Legislatures, Charitable Gaming: Most states require a license or permit before a nonprofit can legally run a raffle
2. IRS.gov, Instructions for Forms W-2G and 5754: Payers of certain gambling winnings must obtain winner identification and report payouts above IRS thresholds
3. IRS.gov, Annual Exempt Organization Return: Who Must File: Which Form 990 series version an organization files depends on gross receipts and total assets
4. IRS.gov, Exempt Organizations Annual Reporting Requirements: Most tax-exempt organizations are required to file an annual Form 990-series information return
5. IRS.gov, Annual Electronic Filing Requirement for Small Exempt Organizations (Form 990-N): Organizations with gross receipts normally $50,000 or less may file Form 990-N, and failure to file for three consecutive years triggers automatic revocation
6. IRS.gov, Form 990-EZ and Instructions: Mid-sized exempt organizations file Form 990-EZ, which includes Schedule G reporting for fundraising and gaming events
7. IRS.gov, Topic no. 419, Gambling income and losses: Gambling winnings including raffle-type prizes can trigger federal reporting and withholding above certain thresholds