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Nonprofit Law/Booster club Revenue question

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Question
We have just formed a gymnastics booster club and am awaiting 501(c)(3) status.  The gym through which our kids participate have always paid for competition meet fees directly with the gym owners telling us how much a particular meet will cost.  If you choose to participate, you pay the funds to the gym directly and they register your child for you.  Our hope was to raise revenue through fundraising to defray those costs, pay out what the board deems appropriate toward a particular competition, and then have the parents "make up the difference," paying that amount to the gym directly, as they have in the past.  I.E., instead of this meet costing you $50, due to funds paid by the booster club, the meet cost to you is now only $25.  Are we allowed to do that or do the parents now have to pay us the full amount that we collect as dues and we pay the gym for the "total" meet fee?

Answer
The booster organization may pay half of the meet fees.  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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