AboutHarvey Mechanic Expertise Federal tax issues of nonprofit 501(c)(3) public charities only. Establishing and maintaining legal requirements for such non-profit organizations in the United States, including Internal Revenue service filings and requirements. I will not be working on this free forum to answer question about Nonprofit's Unrelated Business or how to fill out forms. This forum is only for legal questions about a specific nonprofit asked by members or those otherwise directly effected by the specific nonprofit organization.
Experience I have been practicing law and especially the law of nonprofit organizations since 1990 when I was admitted to the New York Bar.
Question I am part of a committee that is organizing a booster club for a competitive dance team. I have some questions about how to proceed. Is there a difference between nonprofit and not for profit? Also, could members of the competition team opt out of the booster club because they don't need the funds we are raising. These people would rather the money go to others that need it. I understand that for a nonprofit organization all the funds go to all members. Thank you.
Answer Some states, like New York, use the term "Not-for-Profit" but most states use the term "nonprofit" and the two terms refer to the same type of entity.
If the booster organization is a 501(c)(3) organization it should not be granting funds depending upon membership in the booster organization. The Board of Directors of the booster organization certainly does not need to give funds to all members of the dance team, but may give on the basis of need.
If you want me to send you the basic information that I have for booster organizations, let me know and I will send it to you.
Harvey Mechanic
Attorney At Law
Harvey108@hotmail.com
