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Nonprofit Law/fundraising for non profit 501

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Question
Harvey,

 I know you deal with public charities, however i was on the itnernet and saw a blog where you gave some advise to a gymastic team parent. I ahve a similiar question if you woudl be kind enough to answer.
  My daughter is on a competitive cheer team, they are going on a trip and are doing a fundraiser. The fundraiser works like this, each girl gets a business to sponsor them and part of the sponsors money goes to offset costs for the girl and advertising the business name on flyers, shirts and banners. The President of the boosters said the checks can not be written to the booseters organization as it is for individual girls. if i read your previous blog correctly, a pass through account through the booseters would allow this. am i correct or did i read this wrong.

Answer
A pass-through account is ok, but then the sponsors should be informed that their payments donations are not deductible as charitable contributions for federal income tax purposes.  
As to charitable deductions, see IRS Publication 526 "Charitable
Donations"  which is available at:
http://www.irs.gov/pub/irs-pdf/p526.pdf
on page 6 where the IRS lists as not deductible "Contributions to
individuals who are needy or worthy. This includes contributions to
a qualified organization if you indicate that your contribution is
for a specific person."

Also note that the 501(c)(3) booster organization is not allowed to give the sponsors an acknowledgement of a donation.

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

Expertise

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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