Nonprofit Law/Booster Club

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Question
QUESTION: We have a booster club that helps all sports in 7-12th grades. We do not have a EIN (we use the public schools EIN) nor are we incorporated. Our funds raised are held by the school district, and the club has officers and hand full of members and by laws. My question is, if funds are held by the school does this mean that the club can have members and officers make the decisions on spending and fundraising? Funds are not evenly dispersed among the 7-12 grade sports, and only 3 officers are deciding how the funds are dispersed. Also profits exceed $5000 annually so is the club required to file IRS returns or since they use schools EIN they are not required to?

ANSWER: Your club is not a entity separate from the School District and, therefore, you would only have whatever powers are granted to your club by that School District. Because the club is not an entity separate from the School Board (it is not a nonprofit corporation, charitable trust, or unincorporated nonprofit association) it has no filing requirements with the IRS. Whatever requirements would exist would be the responsibility of the School District.

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.

---------- FOLLOW-UP ----------

QUESTION: Can this club be an entity of the school if only adults (non students) are the members and officers? And does the sunshine law apply to the club?

Answer
In the United States, unless a group is organized and operates a bank account with their own EIN (Employer Identification Number - or Taxpayer Id number), it is considered to simply be a committee of the entity that allows it to use its EIN. All laws that would apply to the school would apply to a club or committee of the school district. Therefore, the State sunshine law would apply to the club.

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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