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Nonprofit Law/Mandatory fundraising for sports league


Can you please let me know if is legal for non-profit sports league to have mandatory fundraising of $200 (selling raffle tickets) per player when parents already paid $325 per child to play?
Thank you,

First you would need to read any agreements you signed for the $325 which may indicate the services that the sports league was going to provide for the $325.  Such "applications" or other agreements are contracts and you would be able enforce the agreement even if your family does not take part in the sales activity.  If you want to send me a copy of any agreement, I will look it over for you.

If, however, you have no written agreements, you would be able to enforce an oral agreement but that is usually harder to prove.

If you don't have either, let me know, and I will reply further to the league's demand for $200 extra.  I interpret their demand as the are demanded $200 and it could be given to the league by the family paying directly $200 or by selling raffle tickets, or the combination of the two.

The league would be jeopardizing their exemption. In June of 2011 the IRS wrote:
---Start of Excerpt--
If a booster club confers a benefit on a participant in return for
their fundraising activities, such as by crediting amounts raised
by a participant toward that participant's dues requirement, or by
crediting amounts raised against the cost of a trip, the booster
club is providing a private benefit to that participant.
Consequently, such practices could result in the organization
failing to be described in 501(c)(3).
---End of Excerpt---

The IRS continued in the next paragraph, "It is also possible that
amounts credited to a participant's account due to fundraising
would constitute income from services, and could result in
employment taxes."

That applies not only to booster organizations but also to youth sport leagues.

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


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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