Nonprofit Law/Senior gifts


QUESTION: As a non profit booster for a sport, is there a max for senior gifts graduating from high school?

ANSWER: Internal Revenue Code section 501(c)(3) which is available at (on page 2, first column) has, in part, that the 501(c)(3) organization must be "operated exclusively for religious, charitable ...or educational purposes.  Gifts outside of educational purposes by a 501(c)(3) booster organization would not, therefore, be appropriate, but appear to be a simple distribution of profits.

Harvey Mechanic, Attorney at Law -

P.S. This response is intended to be a general statemet of law, should not be relied upon as legal advice and does not create an attorney/client relationship.    

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

QUESTION: Thank you for responding so fast!  Kind of confusing.  Says inappropriate but a "simple" distribution of funds; no and yes?  Never did fibd where it reads about gifts....

Often family members of seniors control booster organizations and, therefore, the seniors would be "insiders". Inurement (benefits to insiders) is discussed by the IRS at  ttp://
and specifically note, on the bottom of page 10, "even a minimal amount of inurement can result in disqualification for exempt status"

Harvey Mechanic, Attorney at Law -

PS. 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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