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Nonprofit Law/501(c)(3) booster club exemption

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Question
We recently formed a sports booster club, but we have one parent of an athlete that wants absolutely nothing to do with our group.  We have said that we are not forcing any parent to do any fundraising and that their child, as a member of the team, would still receive the same benefits as every other child of the team.  Regardless, they do not wish to "become a member" and do not want any of the booster funds to be attributed toward their child.  Is there an "opt-out" form that I should have them fill out to cover us both saying that they are not a member and that they are agreeing that their child will not receive any of the booster club's funds?  This parent has shown great resistance to the formation of the club in the first place, and we want to make sure that we are covered in case the parent decides in the future to come back and say that their child was left out, etc. because the parent chose not to participate.  Under the new rules, we know that all children must benefit as a team, as opposed to any individual child; but if the parent doesn't want the money?  Hard to believe someone wouldn't want the funds, but that's also the reason why I'm having such a difficult time finding an answer to my question.

Answer
Those are not new rules but, in any case, a family may certainly opt-out.  There is no form but a sentence is sufficient, such as "I, parent of John Doe, do not want ABC Booster Organization to fund my child or grant any benefits to my child."  Have the parent sign and then date it.

It appears you may have read it, but my summary of IRS regulations relating to 501(c)(3) booster organizations is at http://goo.gl/IdQwML and you may be interested to read that.

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

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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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