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Nonprofit Law/Gymnastics Non Profit Booster Club -Paying Per Session Fees to Coaches


Are 501c3 non-profit booster clubs allowed to pay fees to coaches per session worked at meets out of the booster club account? This basically amounts to salary/income for the coaches of the privately owned gym as they are paid separately for expense reimbursement (hotel, mileage, per diem, etc..).
Thanks for your help!

The IRS rule for what a 501(c)(3) booster organization may spend money on is similar to the standard that the IRS uses when determining what is a valid business expense for an ordinary business as long as the expenditure is for a valid charitable purpose and, generally, not to a corporate insider.  For example, see "Business Expenses"
on page 3, under "What Can I Deduct"
--start of excerpt  ---
To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your industry. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.
--end of excerpt  ---

Therefore, it is acceptable to give a coach a fee for his or her work in helping the youth in their gymnastic development.

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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