Nonprofit Law/Golf cart

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Question
After 2 yrs helping baseball I formed a 501 c3 baseball booster with booster insurance but it only was for 1 yr - then coach was fired by new principal after coaching there for 4 years. That last yr coach asked me to get a cart thru my golf contacts.  I bought  the cart with my $200. The  sch ath dir said I had to pay a third of value  of cart to school. I paid the third thru booster acct.
After the firing I closed booster acct then gave the cart to the coach.  After 5 months the principal said the cart belonged to the sch and picked it up at coaches new job. This was with the new supt approval. I have the org receipt.  They have a copy. This alhambra sch district is very strict on title 9 after having lost a big case in court.  The cart was never presented to the sch board or school officially.  I thought it was mine.  I would really appreciate your opinion on this. Thank you so much

Answer
A 501(c)(3) booster organization may not give equipment to a private individual like a coach. Internal Revenue Code section 501(c)(3) which is available at:
http://goo.gl/7lFll (on page 2, first column)
has, in part, that the 501(c)(3) organization must be "operated
exclusively for religious, charitable ...or educational purposes
... no part of the net earnings of which inures to the benefit of
any private shareholder or individual".  "Earnings" refers also to grants of equipment.

You wrote that part of the purchase of the cart was through the 501(c)(3) organization's account, and, therefore, the cart could not be yours.

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

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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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