AboutHarvey Mechanic Expertise US 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 questions about Nonprofit's unrelated or for-profit businesses or how to fill out forms. This forum is only for general questions about federal tax law, not as the law applies to your specific situation.
To search my previous answers you can do a Google search: site:allexperts.com/q/nonprofit [with your other search terms appended].
Experience I have been practicing law and especially the law of nonprofit organizations since 1990 when I was admitted to the New York Bar.
Education/Credentials B.S. Columbia University in New York City, 1970
J.D. (Law Degree) Brooklyn Law School, 1990 -- Cum Laude
Question QUESTION: Is the team booster club violating IRS code for exempt organizations by requiring members to sell or recruit a minimum amount during a fundraiser while requiring them to pay the difference between the amount they raised and the minimum amount required? Example, I was told I must recruit 5 golfers for a booster club golf tournament at $150 per golfer or $750. If I recruit only 1 golfer, I must pay the difference of $600 out of my pocket. Also, the booster club will only give me a participation percentage of the total amount raised at the event based upon the amount I collected (1 golfer/$150). Only those members that recruited at or above their minimum would receive a percentage of my $600 penalty (and any other penalties from other members that did not meet the minimum requirements).
ANSWER: Yes, 501(c)(3) organization may not require membership or fundraising as a condition for grants. http://snipurl.com/boosterinf
is my summary of IRS regulations relating to 501(c)(3) booster organizations.
You may be interested to read that.
I am assuming you are aged 18 or younger.
Harvey Mechanic
Attorney at Law
Harvey108@hotmail.com
---------- FOLLOW-UP ----------
QUESTION: Will the booster club meet the stipulations of 501(c)(3) by allocating 30% of the event's proceeds to be split evenly among all the booster club members, while requiring members to meet a minimum amount of fundraising in order to receive a share of the remaining 70% of the proceeds?
Above 18yrs
Answer No. Division on the basis of fundraising is no allowed for 501(c)(3) organizations. If the majority of the golfers are above age 17, I doubt that the IRS will grant exemption unless there is a charitable purpose of the golfing.
Harvey Mechanic
Attorney at Law
Harvey108@hotmail.com
