I want to find out if I have basis to have the recent booster club at my daughter's gym investigated or could file a complaint.  We had a booster club started at beginning of season where we were all required to pay $80 membership fee in order to get club started.  We had several fundraisers and then were told that the money was used to pay for sled check on coaches and certification and re-certification on the coaches as well as USAG fees for the coaches.  The owner of the gym and head coach was the president of the Booster club and said that she had to be because she was in charge of setting it up.  We have not seen any reports on the account.  Recently we were informed we were already in the negative and really needed to pickup fundraising.  Well so many parents were fussing about it that the coach/owner decided to cancel booster club and go to individual accounts for everyone and we would all start at a $0 balance since the money was gone anyway.  One parent asked about the $80 that was put in to start the account and we were told that was being used to pay the accountant for setting up the booster club.  Everything just seems really weird and I'm not sure if I can do anything since she called quits to the booster club.  In fact, I'm doubting she ever opened one but not sure how to proceed.  Please help with some direction.

I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. It appears that there was no such club.  If you have a contract matter of dispute you can take that to small claims court.

Harvey Mechanic, Attorney at Law -

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


DO NOT GIVE ME INFORMATION THAT YOU WANT KEPT CONFIDENTIAL. 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 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 "" without the quotes and then add your search terms before hitting enter.


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.


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

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

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