IRS Denies 501(c)(3) Exemption To Booster Club Due To Inurement
Poking around on the internet it strikes me that this fundraising model was more prevalent in gymnastics than in other sports. That might be because if you are raising money for a baseball team or a band to go somewhere, you probably want to get the whole team there, since it won’t do the other players much good if all the pitchers or all the tuba players aren’t good at selling popcorn or whatever.
At any rate, the word seems to be getting out that this particular booster model does not work, if you are looking for exempt status. Dan Caldwell notes in his post 5 Essentials for Booster Clubs to Meet IRS Requirement that booster clubs cannot allocate to participants based on their fundraising efforts.
From The Boston Tax Institute
Lu Gauthier has given me permission to reproduce his email blasts. This one is a catch-up, so it is on the long side. Future posts in the series will be more focused....
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