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Nonprofit Law/gymnast sponsor-transfer?


My daughter is a gymnast who was sponsored by a business, a $1000 sponsorship. She has since decided that her training would be better suited at another gym (we haven't found one yet and are still "gym shopping"). My question is, when we find a new gym, does the current gym have to transfer those funds to the new gym? There is not anything in any contract stating either way....her current gym is new at the sponsorships and doesn't have most of these rules in place as of yet. Since this sponsorship was given to my daughter & stated on a sponsorship form the funds were for my daughter, shouldn't she be entitled to these funds regardless of where she trains?

I would like to know whether the gym is a for-profit or nonprofit exempt 501(c)(3) organization.  Let me know which and then I will reply further. Also did the business specify that the $1000 were to be used for your daughter's training. Was part of the $1000 already used for the training at the original gym? If you have a copy of the complete text of the sponsorship form that would make it easier for me to give you a definitive answer.

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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