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Nonprofit Law/501 c3 booster club funds


Can a 501c3 booster club provide funds for players that do not pay for accommodations to tournaments when other parents have to pay for the same accommodations?
If so, do we have to make it public knowledge to all the club members that we are spending club money to pay for these players?
Do we need to do a donation/sponsorship to the family?

A 501(c)(3) organization may make grants to individuals (like youth for tournament play) and discriminate in favor of those youth for many reasons, as long as the discrimination is not based upon one prohibited in law, such as a person's race, religious or work for the 501(c)(3) organization). My summary of IRS regulations relating to 501c3 booster organizations is at -- you may be interested to read that.

As for what information has to be released to the public or members, first inform me whether the members have the right to vote for members of the Board of Directors and then I will let you know, as to Mississippi law.  I am assuming the booster organization has been incorporated under the Mississippi Nonprofit Corporation law.

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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