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Nonprofit Law/Dance Team Booster Funds

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Question
Our Dance Studio has a boosters for dancers that are on the competition team. Not all dancers on the team are part of the boosters.  They do a lot of different types of Fundraisers for individual sales( cookie dough, candles, pizza etc.) These profits are put directly into the dancers booster account. We also do Large fundraisers such as Restaurant donations on sales, concession stand sales profit, sponsorship, raffles, etc. On the large fundraisers the profit is currently only being credited to the individual accounts of only the dancers and families that are booster members, instead of all members of the dance team. Don't those funds have to benefit every member of the dance team and not just specific members?

Answer
Those funds have to benefit every member of the dance team and not just specific members if the boosters organization is a 501(c)(3) organization. My summary of IRS regulations relating to 501c3 booster organizations is at:
http://goo.gl/RO1ez and you may be interested to read that for more details and let me know if you have any follow-up

Harvey Mechanic, Attorney at Law -
Harvey108@hotmail.com

P.S. This response is intended to be a general statement of law, should not be relied upon as legal advice and does not create an attorney/client relationship.  

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Harvey Mechanic

Expertise

I am an attorney and I volunteer time to answer general questions about U.S. Federal income tax issues of nonprofit 501(c)(3) public charities only. Those questions could be about 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 possible 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. If you do not make your question public then I will not be spending much of my donated time on answers that would not benefit the public. If you have other questions, please contact me at Harvey108@hotmail.com I will reply from my email. In any case, do not reveal confidential information to me until after I have contracted with you to provide personal legal services. My responses on this forum are intended to be general statements of law, should not be relied upon as legal advice, and do not create an attorney/client relationship. For me to consider your individual situation and how the law applies, I would need to gather extensive information about the situation. To search my previous answers you can do a Google search by "site:allexperts.com/q/nonprofit" without the quotes and then add your search terms before hitting enter.

Experience

I have been practicing law and especially the law of nonprofit organizations since 1990 when I was admitted to the New York Bar and I have maintained my status with the Bar since that time.

Education/Credentials

B.S. Columbia University in New York City, 1970

J.D. (Law Degree) Brooklyn Law School, 1990 -- Cum Laude.


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