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Nonprofit Law/booster club 501 c3 bank account

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Question
QUESTION: can we purchase airline tickets for group rates for athletes and parent using our checking account

ANSWER: I do not know if you are asking about whether the organization can purchase tickets that parents have already paid the organization for.  The answer is "yes", if that would be beneficial to the athletes or the 501(c)(3) organization in that they are getting a group rate.


If you are asking instead about parents reimbursing the organization for tickets or something else, please clarify and then I will reply further.

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: We want to buy airline tickets at a group rate. We are depositing the money in our booster club account then paying the airline. I was just concerned about purchasing the parents tickets this way. And not every body in the booster club is participating in the purchase of the airline tickets. The athletes  are competing in an event in June in Las Vegas. We are raising money for this event.

ANSWER: That is fine, just account for the ticket items as pass-throughs.  See the Google Book Version of "Not-For-Profit Accounting Made Easy"  By Warren Ruppel which is available at  http://tinyurl.com/4rlv3v3

Starting at the bottom of that page 81 for a few pages you can read the recommended treatment of pass-throughs. Mr. Ruppel advises to follow the recommendations of The Financial Accounting Standards
Board, Statement 136, entitled "Transfers of Assets to a Not-for-Profit Organization or Charitable Trust that Raises or Holds Contributions for Others".  A good description is also available
at www.nysscpa.org/cpajournal/2000/0100/f46100a.html

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 a coach be an officer of the 501 c3 booster club?  ie{ president,treasurer, or secretary

Answer
A coach may be an officer of a 501(c)(3) booster organization but she must not exercise control as to elements of personal financial interest. See http://www.irs.gov/pub/irs-tege/eotopica93.pdf
starting on pages 11 "Private Facility Owners" which discusses prohibited private benefit and excessive control of the booster organization by interested persons.

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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