Air force booster club raffles: rules every treasurer needs

Last updated 2026-08-14

can an air force booster club legally run a raffle?

Yes, in most cases, but it depends on where the raffle happens and who runs it. If your booster club is a civilian nonprofit (say, a 501(c)(3) supporting a high school JROTC program or a youth sports league that uses base facilities), your state's charitable gaming or raffle license rules govern you, the same as any PTO or booster club ^[1]. If the raffle happens ON a military installation, or the club is chartered as a private organization under Air Force rules, you also answer to Air Force Instruction 34-223, "Private Organizations (PO) Program," which governs fundraising activities by private organizations operating on Air Force property ^[2]. Those two rulebooks don't always agree, and neither one waives the other. A raffle that's perfectly legal under your state's gaming statute can still get shut down by a base commander's policy if it's held in the base gym without prior approval. Confirm with your state charity office and, separately, with your installation's Airman and Family Readiness or Force Support Squadron office before you print a single ticket.

what is a booster club treasurer, and what does the job actually involve?

A booster club treasurer is the person responsible for tracking money in, money out, and keeping records straight enough that anyone (the board, the IRS, a state regulator) can verify where the funds went. It's a volunteer job in nearly every booster club, but the paperwork obligations are identical to a paid finance role. What does a treasurer do, day to day? Deposit checks and cash promptly, reconcile the bank statement monthly, keep receipts for every purchase, track raffle ticket sales separately from membership dues or concession revenue, and prepare (or hand to a preparer) whatever the IRS requires each year. What do treasurers do for a raffle specifically? They track ticket inventory (numbered stubs sold vs. unsold), record who won and what they won, withhold and report large prizes when required, and keep the raffle's cash separate from the general operating account until it's reconciled. What does a treasurer of a club do that a president or fundraising chair doesn't? The treasurer is usually the only person who signs off on the numbers going to the IRS and the state. That's why raffle recordkeeping (ticket logs, deposit slips, prize receipts) sits squarely in the treasurer's lane, even if a fundraising committee runs the actual event.

what is form 990, and does a small booster club need it?

Form 990 is the IRS's annual information return for tax-exempt organizations. It's how the IRS (and the public) sees what a nonprofit brought in, spent, and holds in assets. There are several versions scaled to size, and almost every tax-exempt group has to file some version every year, whether or not it owes any tax ^[3]. What is the 990 for a typical booster club? If your gross receipts are normally $50,000 or less, you file Form 990-N, the "e-Postcard," which is just eight data fields online, no financial detail required ^[4]. Above that threshold, you step up to Form 990-EZ (gross receipts under $200,000 and total assets under $500,000) or the full Form 990 for larger organizations ^[5]. Raffle income counts toward your gross receipts figure, so a big raffle year can push a club that normally files 990-N into 990-EZ territory. Check your total receipts before you assume you're still in e-Postcard range. What is a 990 tax form used for beyond the IRS? Watchdog sites, state charity regulators, and even school districts sometimes ask to see a club's most recent 990 before approving continued use of school facilities or letterhead. Filing late or not at all has a real consequence: three consecutive years of missed 990 filings triggers automatic revocation of tax-exempt status under Internal Revenue Code section 6033(j) ^[6]. For more on which version applies to your club's size, see form 990 and 990-N.

how does a raffle affect what the booster club reports on its 990?

Raffle ticket sales count as gross receipts, and that matters for two reasons: it can change which 990 version you file, and it triggers separate IRS gaming reporting rules that exist outside the 990 itself. On Form 990-EZ or the full Form 990, gaming activities (raffles included) get reported on Schedule G if gross income from gaming exceeds $15,000, or if the organization reports more than $15,000 in total fundraising event income and expenses combined, depending on the form version and thresholds in the current instructions ^[7]. Confirm the exact Schedule G threshold for your filing year with the IRS instructions, since these figures get revisited periodically. Separately, if a single raffle prize is worth $600 or more and at least 300 times the wager (the ticket price), the club may have to issue the winner a Form W-2G and could owe backup withholding at the flat rate the IRS specifies for gambling winnings; for prizes without withholding, the 24% backup withholding rate applies once winnings exceed $5,000 net of the wager ^[8]. This is the part treasurers miss most often. Track the ticket price and prize value for every raffle before you draw a winner, not after, because the withholding math depends on both numbers at the moment of the win.

what state raffle license does an air force booster club need?

Every state that allows charitable raffles has its own bureaucracy for it, and there is no federal raffle license. You register with your state's attorney general, secretary of state, or a dedicated charitable gaming division, and the fee, paperwork, and renewal cycle differ enormously state to state. Some states require a formal license application weeks in advance with a fee (often $25 to a few hundred dollars). Others allow small "casual" or exempt raffles below a dollar threshold with no license at all, just a post-event report. A handful of states cap how much of gross raffle proceeds can go to expenses versus the charitable purpose. None of this is optional paperwork you can skip because the raffle benefits a military-affiliated group; state charity regulators generally don't carve out an exemption for that. Because the rules vary this much, don't rely on what another booster club did last year in a different state, or even what your club did five years ago if the law changed. Confirm current license requirements, fees, and reporting deadlines with your state's charity regulator or attorney general's office before you announce the raffle.

what if the raffle happens on an air force base?

If any part of the raffle (selling tickets, holding the drawing, storing prizes) happens on federal or Air Force property, you layer on Department of Defense and Air Force rules regardless of what your state license allows off-base. Air Force private organizations (POs), which is the formal category most spirit clubs, boosters, and welfare-type clubs fall into if they operate with base support, must get their fundraising activities, including raffles and games of chance, approved in advance under AFI 34-223 ^[2]. The instruction spells out that POs need a charter, financial oversight, and commander-level review of significant fundraising events; specifics on games of chance approval sit with the installation's legal office and the Force Support Squadron in current guidance, so confirm the exact current requirements with your installation's PO office rather than assuming last year's approval carries forward. A practical note: raffle prizes involving alcohol, firearms, or anything requiring a federal license (like certain hunting or shooting-related items) usually need extra sign-off from base legal before you can even advertise them as prizes. Don't print tickets listing a prize you haven't cleared.

does a booster club need a raffle license if it's a registered 501(c)(3)?

Being a 501(c)(3) tax-exempt organization is a federal tax status. It has nothing to do with your state's separate requirement to license charitable gaming. You need both, and they're handled by completely different offices. A lot of new treasurers assume that once the IRS has recognized the club as tax-exempt, they're clear to run any fundraiser they want. That's not how it works. The IRS cares about how you report the income (gross receipts, Schedule G, possible unrelated business income issues if gaming isn't properly structured as related to your exempt purpose). Your state's charity or gaming regulator cares about consumer protection: making sure raffles are run fairly, prizes are awarded as advertised, and proceeds actually reach the stated cause. You file with the IRS. You separately register or apply for a permit with the state. Missing either one is a compliance gap, not a shortcut.

what records does the treasurer need to keep for a raffle?

Keep more than you think you need, because a raffle is exactly the kind of one-time event that draws questions later, whether from the IRS, a new board member doing a handoff review, or a parent who didn't win and wants to see the ticket count. At minimum, keep: the state license or registration confirmation, a ticket log showing total tickets printed, sold, and unsold with serial numbers if your tickets are numbered, a record of who bought tickets if your state requires it, the deposit record showing raffle cash separate from other club funds until reconciled, the name and contact information of every prize winner, a copy of any W-2G issued, and the board minutes or approval showing the raffle was authorized. Store all of it for at least the IRS's standard three-year audit window, though many treasurer guides recommend keeping fundraising records for the life of the organization or at minimum seven years given how gaming and prize documentation tends to get requested during audits. A simple spreadsheet with tabs for tickets sold, deposits, and prizes covers 90% of what a booster club needs. The other 10% is the state license paperwork and any W-2G forms, which need to be kept as originals or clean scans, more than summarized in the spreadsheet.

what does a treasurer do if the club's tax-exempt status has already been auto-revoked?

First, don't panic, and don't stop the raffle planning entirely, but do treat this as the top priority ahead of any new fundraiser. Auto-revocation happens automatically when an organization required to file Form 990, 990-EZ, or 990-N fails to do so for three consecutive years, per Internal Revenue Code section 6033(j)(1) ^[6]. The IRS publishes the Auto-Revocation List, and you can check your club's status there directly . Once revoked, the organization is no longer tax-exempt for federal purposes, which means donations may not be tax-deductible to donors, and the club may owe corporate income tax on net revenue, raffle proceeds included, until reinstated. Reinstatement generally requires filing Form 1023 or 1023-EZ (or Form 1024 for non-501(c)(3) groups) along with all delinquent 990s, and the IRS has a streamlined retroactive reinstatement process for organizations applying within 15 months of revocation, described in Revenue Procedure 2014-11 . Running a raffle while revoked doesn't automatically violate your state gaming license, since that's a separate registration, but it does mean any income generated may not enjoy the tax treatment your board is assuming. Get the reinstatement filed before you commit to a large fundraiser, or at minimum tell your board clearly that the exemption is lapsed so nobody overpromises tax deductibility to donors buying raffle tickets.

how do you set up cash-handling controls for a raffle event?

A raffle is a single-day (or single-weekend) cash event, which makes it exactly the kind of activity where a well-meaning volunteer can end up under suspicion later just because nobody wrote anything down in real time. Use at least two people for every cash-handling step: two people to count the starting ticket bank, two people to count and log deposits at intervals during the event, two people (ideally one being the treasurer) to count and reconcile the final cash drawer against the ticket log. Never let one person both sell tickets and hold the cash box unsupervised for an extended period. At the drawing itself, have someone other than the ticket seller draw the winning ticket, and get a witness signature on the winner record. If the prize is a big-ticket item requiring a W-2G, collect the winner's Social Security number or tax ID at the moment of the win, not later by phone, because getting that information after the fact is far harder than getting it in person. This is the same segregation-of-duties principle that applies to any booster club's financial controls work, just compressed into a few hours instead of spread across a year.

what's the difference between a raffle and other booster club fundraisers, tax-wise?

Raffles get their own IRS lane because they're a form of gambling, technically, and gambling income has specific withholding and reporting rules that a bake sale or car wash never triggers. A straightforward sale (concessions, spirit wear, car wash) is just program or unrelated business income depending on how it relates to your exempt purpose. A raffle involves chance and a prize, which puts it under the IRS's wagering and gaming rules: possible W-2G issuance, possible withholding, and Schedule G reporting on the 990 if the thresholds are met ^[7][8]. A silent auction sits somewhere in between, generally treated as a sale rather than a wager, since the winning bidder pays fair value rather than a small ticket price for a chance at a large prize. For a booster club treasurer, the practical upshot is: budget more time for raffle paperwork than for almost any other single fundraiser type. A $500 bake sale needs a deposit slip. A $500 raffle can need a state report, a ticket log, a possible W-2G, and a Schedule G line depending on your total gaming income for the year.

where does a $99 treasurer kit fit into all this?

None of the rules above change because you buy a kit; they're set by the IRS and your state, full stop. What a kit can do is save you the hours of hunting down which forms apply to your specific state and organization size. BoosterLedger's $99 one-time State-Personalized Treasurer Kit bundles a raffle recordkeeping template, a 990/990-N filing checklist scoped to your club's typical gross receipts, and a state-specific reminder of where to check current raffle license requirements. It's a starting template, not a substitute for reading your actual state statute or your installation's PO office, and it won't file anything for you or guarantee any outcome with the IRS or your state regulator.

Frequently asked questions

What does a treasurer do in a booster club?

A booster club treasurer tracks all money coming in and going out, reconciles the bank account monthly, keeps receipts and deposit records, and prepares or hands off the annual IRS filing (Form 990-N, 990-EZ, or full 990 depending on size). For fundraisers like raffles, the treasurer also tracks ticket sales, prize payouts, and any required tax withholding.

What is Form 990, and which version does a small booster club file?

Form 990 is the IRS's annual information return for tax-exempt organizations. Clubs with gross receipts of $50,000 or less normally file the simplified Form 990-N e-Postcard; above that, Form 990-EZ or the full Form 990 applies depending on receipts and assets ^[4][5].

Can our booster club run a raffle if we're a 501(c)(3)?

Yes, but 501(c)(3) status is a federal tax designation, not a raffle license. You still need to register or get a permit through your state's charitable gaming or attorney general's office, since that's a separate requirement handled by a different agency entirely.

Do we need a special license to raffle on a military base?

If the raffle happens on Air Force property, or your club is chartered as a Private Organization, Air Force Instruction 34-223 requires commander-level review and approval of fundraising activities including games of chance ^[2]. Confirm current specifics with your installation's PO office before planning the event.

What happens if a raffle prize is worth a lot of money?

If the prize is $600 or more and at least 300 times the ticket price, the club may need to issue the winner a Form W-2G, and backup withholding rules can apply depending on the prize value and whether the winner provides a taxpayer ID ^[8]. Collect the winner's ID information at the drawing, not afterward.

What is the 990-N e-Postcard?

Form 990-N is the shortest IRS annual filing, available to tax-exempt organizations with gross receipts normally $50,000 or less. It's eight data fields filed online with no financial detail, but skipping it for three straight years triggers automatic revocation of tax-exempt status ^[4][6].

What happens if our club's tax-exempt status was auto-revoked?

Auto-revocation happens after three consecutive years of missing required 990 filings under IRC 6033(j) ^[6]. Check the IRS Auto-Revocation List ^[9] to confirm status, then file Form 1023 or 1023-EZ plus delinquent returns; the IRS offers streamlined retroactive reinstatement within 15 months of revocation under Revenue Procedure 2014-11 ^[10].

What records should the treasurer keep for a raffle?

Keep the state license confirmation, a full ticket log (sold, unsold, serial numbers), deposit records showing raffle cash tracked separately, winner names and contact information, any W-2G forms issued, and board approval minutes. Retain records for at least three years (the IRS audit window), longer if your state or board policy requires it.

Is there a federal raffle license?

No. There is no single federal raffle license. Raffle licensing is handled entirely at the state level through each state's charitable gaming division, attorney general's office, or secretary of state, and rules on fees, thresholds, and reporting vary widely from state to state.

What is a club treasurer's role during a fundraiser like a raffle?

The treasurer isn't usually the person running the event table, but is responsible for the money trail: verifying deposits match the ticket log, making sure prize payouts are documented, flagging any prize that triggers W-2G reporting, and folding the raffle's final numbers into the year's 990 filing.

Does raffle income count toward our 990 filing threshold?

Yes. Raffle ticket sales count as gross receipts, the same figure that determines whether your club files Form 990-N, 990-EZ, or the full Form 990. A large raffle year can push a club that normally qualifies for 990-N into a higher filing tier, so recheck your total receipts before assuming last year's form still applies.

What's the difference between a raffle and a silent auction for tax purposes?

A raffle is a game of chance (a ticket for a chance at a prize), which triggers IRS wagering rules like possible W-2G issuance and Schedule G reporting. A silent auction is treated as a sale, since the winning bidder pays a negotiated price for an item rather than a small ticket price for a chance at winning it.

Sources

1. Air Force, Air Force Instruction 34-223, Private Organizations (PO) Program: Air Force private organizations must have fundraising activities including games of chance reviewed and approved under AFI 34-223
2. IRS, Annual Exempt Organization Return: Who Must File: Nearly all tax-exempt organizations must file some version of Form 990 annually
3. IRS, Annual Electronic Filing Requirement for Small Exempt Organizations (Form 990-N): Organizations with gross receipts normally $50,000 or less may file the Form 990-N e-Postcard
4. IRS, Form 990-EZ Instructions: Form 990-EZ applies to organizations with gross receipts under $200,000 and total assets under $500,000
5. 26 U.S.C. 6033(j), Internal Revenue Code: Failure to file required 990 returns for three consecutive years results in automatic revocation of tax-exempt status
6. IRS, Instructions for Forms W-2G and 5754: Raffle prizes valued at $600 or more and 300 times the wager may require Form W-2G, with backup withholding rules for larger winnings
7. IRS, Tax Exempt Organization Search (Auto-Revocation List): The IRS maintains a searchable list of organizations that have had tax-exempt status automatically revoked
8. IRS, Revenue Procedure 2014-11: The IRS offers a streamlined retroactive reinstatement process for organizations applying within 15 months of automatic revocation