You are here:

Nonprofit Law/Team Fundraising Efforts

Advertisement


Question
QUESTION: We are a 501c3 soccer league with 30 travel teams.  Are individual teams legally allowed to organize fundraisers that benefit their individual team?  Funds would be deposited into the League bank account.  The team would like to have funds allocated for their team expenses and maintain disretion as to how the funds are used.

ANSWER: IRS regulations prohibit a 501(c)(3) organization allowing an individual to raise funds on behalf of the organization when the funds are going to that particular individual.  However, there is no regulation prohibiting a team the size of a soccer team from engaging in such activities for the benefit of the team.

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. For me to consider your individual situation and how the law applies, I would need to gather more information.

---------- FOLLOW-UP ----------

QUESTION: Thank you. What about fundraising (i.e. Selling tickets for a prize raffle)?  Can an individual team fundraiser for their sole benefit?  Each team has a different budget above the basic league fee depending on whether their coach is a volunteer or paid. I understand individual players cannot fundraiser to reduce their own fees. But can the team as a whole reduce their fees or do the funds raised need to distributed league wide if a single team runs their own fundraiser.

Answer
Yes.  I thought that is what I explained earlier, but, in any case, the answer is yes.

You did not ask, but the organization would need to comply with California Raffle regulations. http://ag.ca.gov/charities/raffles.php

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. For me to consider your individual situation and how the law applies, I would need to gather more information.

Nonprofit Law

All Answers


Answers by Expert:


Ask Experts

Volunteer


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.


©2016 About.com. All rights reserved.