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Nonprofit Law/Booster Club Managing Private Student Accounts


I have read your answers to many of the related questions in this area, however, my question is somewhat different.

Our Band Booster club is NOT planning to combine fundraising for the organization with "points" any other inurment to students of fundraising dollars.  However, if students want to ask friends and relatives for NON-Deductible gifts to assist them with the costs of participation in Band activities, would it jeopardize the nonprofit status of the Booster club to hold these funds in a separate account and keep track of the money for students.  Perhaps even disbursing it from the separate account for dues, equipment, uniforms etc.

501(c)(3) booster organizations make hold fees (that are not tax-deductible by the payor), such as fees to be paid by a family to be paid out to third party providers.  Similarly, such an organization could hold funds from a student or family and have those funds only used for the benefit of the student.

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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