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Nonprofit Law/refund money back to booster club from company

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Question
There was a partner split between a dance company.  There were funds that were originally taken by the dance company from the booster club account using the debit card to be applied to the dancers for competition. There was a concern with the owner regarding the booster account bank account and the booster club officers closed the bank account and transferred the funds to a new bank and bank account.  The competition did not take place and the owner of the dance company agreed to refund the funds back to the booster club.  Now she says she is not able to return the funds because she can be fined if the funds are no returned in the same manner as she took them out. Is she correct or just creating a diversion? There are dancers that can not get access to the money to go towards their dances.  Help and thank you!

Answer
Were both accounts under the same EIN (Employer Identification Number, also known as the taxpayer identification number) of the booster organization? Is the booster organization a corporation?  If not, what?  Has the booster organization received has received a determination letter from the IRS that the organization is exempt under section 501(c)(3)?  After you give me that information I will reply further.

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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