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Nonprofit Law/expense payments for 501(c)3


Our booster organization splits all fund raising dollars equally among all members.  My question has to do with allocation of expense dollars.  They require all members to pay a flat "coach's fee" to cover coach's expenses. These fees if divided out per individual would not be equal. ei: Level 3 would use 4 coaches at a meet for 20 gymnast so that would equal $15 per gymnast.  The level 10's would use 2 coaches for 4 gymnasts so that would be expenses of $37.5 per gymnast. multiply that by 7 meets.  That would mean that over a season, there should be a difference of $157.50 in expenses per gymnast per group yet their charged fees are equal.  In addition they are not including some coaches fees incurred by some members because they do not want to.  Is this proper according to the 501(c)3 guidelines?

A booster organization must fund youth gymnasts who are similarly situated with each other even if the family is not a member of the 501(c)(3) booster organization. My summary of IRS regulations relating to 501(c)(3) booster organizations is at: and you may be interested to read that.

But, as to your specific question, the gym, and not the booster organization, would need to decide the charges to the individual families.

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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