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Nonprofit Law/Gymnastics booster club


I have one last follow question from our earlier thread.
So far, I have determined that it will be best to move forward with a Board but no "members".  Team parents would be "interested persons" but would choose to volunteer or not.  All funds raised benefit all team members regardless of participation.  Assessments are permissible (about $1000) from each team member.  My question arose as I am completing the Form 1023 and assessments are to be listed under "membership fees".  This will be true when filing the 990 later as well.  If we don't have "members", can the assessment come from "interested persons"?  Can team members be required to pay the assessment?  If not, then how do we start the process since we have raised some money but not enough to cover the upcoming meet entry fees without parent contribution in the form of an assessment?
Thanks for all your help!!  I am almost ready to complete the filing!

Assessments could include funds required for services from non-voting members. When the IRS uses the term "membership", they are not requiring that the members be what state law refers to as members. For example California Corporations code provides in 5056.  
--- Start of Excerpt ---
(a) "Member" means any person who, pursuant to a specific
provision of a corporation's articles or bylaws, has the right to
vote for the election of a director or directors or on a
disposition of all or substantially all of the assets of a
corporation or on a merger or on a dissolution unless the provision
granting such right to vote is only effective as a result of
paragraph (2) of subdivision (a) of Section 7132.  "Member" also
means any person who is designated in the articles or bylaws as a
member and, pursuant to a specific provision of a corporation's
articles or bylaws, has the right to vote on changes to the
articles or bylaws.
--- End of Excerpt ---

However, see which are the Instructions for Form 990 and which is the Form 990.  Specifically on page 9 of the Form, the IRS requests the breakdown of income:
--- Start of Excerpt ---
a  Federated campaigns  . . . 1a
b  Membership dues  . . . . 1b
c  Fundraising events  . . . . 1c
d  Related organizations . . . 1d
e  Government grants (contributions) 1e

All  other  contributions,  gifts,  grants,  
and similar amounts not included above  1f
g  Noncash contributions included in lines 1a-1f: $
--- End of Excerpt ---

Below is Line 2 for "Program Service Revenue" and the assessments would go there. On page 38 of the Instructions, at the bottom of the first column we see
--- Start of Excerpt ---
Line 2.  On lines 2a through 2e, enter the organization's five largest sources of program service revenue. Program services are primarily those that form the basis of an organization's exemption from tax.
--- End of Excerpt ---

Team members can not be required to pay to a booster organization anything unless the third party beneficiary (for example the for-profit gym or the organization billing for meet fees) requires that the funds all come from the booster organization.

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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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