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Nonprofit Law/Fundraiser buyouts


I am trying to locate information on the IRS's website that pertains to booster club fundraiser buyouts but I'm having a difficult time. The booster club at our high school is enforcing a mandatory buyout for any fundraiser when the minimum requirement of sales isn't met by the student. Where can I locate this information?

First I can inform you that the IRS rules only apply to a 501(c)(3) organizations.  You are asking about a "booster club at our high school".  Is that booster organization an IRS approved 501(c)(3) organization?  If so, it would be a separate entity from the school board.  I will assume so and answer, but, if my assumption is not correct, let me know and I will reply further.
A 501(c)(3) booster organization may not require families to participate in fundraisers.  Many families do not know that so they join a a 501(c)(3) organization and, thereby, agree to the regulations of that particular organization. Let me know whether the booster organization states or implies that, if families do not join, their children will not receive benefits.  That would be prohibited.  My summary of IRS regulations relating to 501c3 booster organizations is at:
and you may be interested to read that as it refers to different pages on the IRS site.

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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