I have been nominated a VP of our 501 c (3) athletic booster club which supports a competitive cheerleading gym. Our booster club currently organizes fund raising activities for parents at professional sporting events concession stands like NBA, NFL, Professional Racing, Minor League Baseball, and Music Concert venues. The monies these activities generate are then disperssed to the parents accounts as a "scholarship" to help offset the expenses incurred by their child for this activity. Our club currently takes out 10% of these monies and then donates it to the Gym for the betterment of all participants. I have been told by previous leadership the reason our club takes out the 10% of these monies the parents generate by working these events is to maintain our 501 c (3) status. Is this correct? I have also had parents complain, saying "at other booster clubs they participate in for their child they do not withdraw 10%". Could our club not withdraw 10% of the monies earned, but rather deposit 100% into the parents account and still maintain tax exempt status? Do the parents have to report this money on their taxes?

Thanks

Maybe you can get some advise from a NPO, non-profit organization, expert. The contribution to the gym does not have anything to do with the 501(c)(3) status. Just because the non-profit gives to another non-profit makes no nevermind.

im a member of a non-profit organization as well and that made me question also but thanks for clarifying it Wnhough.

I don't have much experience in this but according to me this money you find from fund rising and its a kind of charity so charity money is not included in taxation. for more accurate answer consult with any lawyer.

gold coast aged care