How do booster clubs work with cheer gyms?

Date: Wed Jul 23 7:13 PM, 2008

How do booster clubs work with cheer gyms?

Date: Wed Jul 23 8:38 PM, 2008

Anonymous wrote:

How do booster clubs work with all star gyms? Is it run by the gym? Is it only for members of that all star gym? And what is a non profit booster club? My gym has a non profit but I don't understand how it works. Can anyone join? Please help!!!

My advice is go straight to the source. Talk to your board and ask all your questions there. Each organization is run differently.

Date: Wed Jul 23 11:30 PM, 2008

Anonymous wrote:

Anonymous wrote:

How do booster clubs work with all star gyms? Is it run by the gym? Is it only for members of that all star gym? And what is a non profit booster club? My gym has a non profit but I don't understand how it works. Can anyone join? Please help!!!

My advice is go straight to the source. Talk to your board and ask all your questions there. Each organization is run differently.

What if they have no clue what they're doing?

Date: Thu Jul 24 9:12 AM, 2008

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

How do booster clubs work with all star gyms? Is it run by the gym? Is it only for members of that all star gym? And what is a non profit booster club? My gym has a non profit but I don't understand how it works. Can anyone join? Please help!!!

My advice is go straight to the source. Talk to your board and ask all your questions there. Each organization is run differently.

What if they have no clue what they're doing?

Im sorry but these kinds of comments seem ridiculous.

If you know enough to know "they have no clue what they are doing" as you put it, than obviously you know how booster clubs are to be run.

Booster Clubs are made up of volunteers. The volunteers are there to help find ways to raise funds for the athletes. Thats it.

It has been my experience that this vision gets lost and things seem to almost always turn south. Parents turn on each other, or on the actual Booster club members and lines get drawn. Sounds like you are there now. Best of luck to you.

Oh and shame on your booster club for not having a clue on what they are doing but for trying to raise money for your club anyways. How selfish of them to volunteer their time. NOT!!!

Date: Thu Jul 24 9:55 AM, 2008

In some cases you have parents who create drama and forget what a booster is for. Sad but true.

CheerTyme Owner · Senior Member

We have a booster club that is non profit. It's basically it's own business with a non profit tax ID number. It allows our families to fundraise using our name. It also allows us to get alot more donations and sponsors. Our booster club really doesn't have members, just a board that does the voting when needed. It works well for us and allows our kids to do alot more fundraising.

Date: Fri Jul 25 7:57 AM, 2008

CheerTyme Owner wrote:

We have a booster club that is non profit. It's basically it's own business with a non profit tax ID number. It allows our families to fundraise using our name. It also allows us to get alot more donations and sponsors. Our booster club really doesn't have members, just a board that does the voting when needed. It works well for us and allows our kids to do alot more fundraising.

Thank you CheerTyme. Do your athletes do most of the fundraising themselves?

Date: Fri Jul 25 9:41 AM, 2008

CheerTyme Owner wrote:

We have a booster club that is non profit. It's basically it's own business with a non profit tax ID number. It allows our families to fundraise using our name. It also allows us to get alot more donations and sponsors. Our booster club really doesn't have members, just a board that does the voting when needed. It works well for us and allows our kids to do alot more fundraising.

what type of fundraisers do you do?

CheerTyme Owner · Senior Member

I make sure we do alot of fundraisers so that more families can be involved in our expensive sport. We have a non profit account set up at our local Bingo hall. Anyone over the age of 18 can go and work during the bingo games selling the bingo cards and "pull tab" games. I think they make $8 to $10 an hour and the money is sent to our booster club monthly. They do not take any taxes because we have the non profit status. Once the money reaches CheerTyme we add the funds to the childs account. This is the BEST way our families make money for themselves. I have families who not only pay their entire yearly costs they also make enough money to send themselves to our Nationals. It is a GREAT way to fundraise and I suggest other cheer gyms look into this kind of fundraising.

We also do candle, avon, cookie dough, etc. sales throughout the year. They are fast and easy ways to make a couple bucks.

We do a 50/50 raffle during Halloween. Tickets are $5.00, whole books are $20.00. We draw the winning ticket on Halloween and call the winner. Last year the winner won $800.00. The kids make only $2.50 on each ticket but it adds up fast.

Our biggest gym fundrasier is our Crab feed. We have an AWESOME mother who owns a party planning business and she puts on the entire thing. Last year was our first year and we made $3000.00 after expenses for the booster club and the kids make money for themselves on the ticket sales.

We do the normal car washes with pre ticket sales. The pre ticket sales money goes to the kids individually and the money made at the car wash goes to the booster club.

We also have premade sponsorship letters for the kids to give out to families, friends, etc. Lots of our kids get alot of money that way, and it is extremely easy!!

I am always looking for more fundraiser ideas so any ideas please let me know. I hope this helps!!

Date: Sat Jul 26 8:15 AM, 2008

Are booster clubs optional or do your gyms require parents to join?

Date: Sat Jul 26 9:26 AM, 2008

CheerTyme Owner wrote:

I make sure we do alot of fundraisers so that more families can be involved in our expensive sport. We have a non profit account set up at our local Bingo hall. Anyone over the age of 18 can go and work during the bingo games selling the bingo cards and "pull tab" games. I think they make $8 to $10 an hour and the money is sent to our booster club monthly. They do not take any taxes because we have the non profit status. Once the money reaches CheerTyme we add the funds to the childs account. This is the BEST way our families make money for themselves. I have families who not only pay their entire yearly costs they also make enough money to send themselves to our Nationals. It is a GREAT way to fundraise and I suggest other cheer gyms look into this kind of fundraising.

We also do candle, avon, cookie dough, etc. sales throughout the year. They are fast and easy ways to make a couple bucks.

We do a 50/50 raffle during Halloween. Tickets are $5.00, whole books are $20.00. We draw the winning ticket on Halloween and call the winner. Last year the winner won $800.00. The kids make only $2.50 on each ticket but it adds up fast.

Our biggest gym fundrasier is our Crab feed. We have an AWESOME mother who owns a party planning business and she puts on the entire thing. Last year was our first year and we made $3000.00 after expenses for the booster club and the kids make money for themselves on the ticket sales.

We do the normal car washes with pre ticket sales. The pre ticket sales money goes to the kids individually and the money made at the car wash goes to the booster club.

We also have premade sponsorship letters for the kids to give out to families, friends, etc. Lots of our kids get alot of money that way, and it is extremely easy!!

I am always looking for more fundraiser ideas so any ideas please let me know. I hope this helps!!

You may want to check with an attorney who specializes in non profits. There are some pretty strict guidelines about how the money must be handled. Many 501c3 booster clubs are doing things that could get them in trouble... just saying...
http://www.irs.gov/pub/irs-tege/eotopica93.pdf
http://www.tess.org/ON/0411_BOOSTER.html#0411_IRS

CheerTyme Owner · Senior Member

Thank you for your input and links. We have had an attorney look at our booster club and the booster clubs policies and procedures. I am always checking though. I will use your links for sure!

Date: Sat Jul 26 2:36 PM, 2008

We have actually met with an IRS agent and there are extremely strict rules in regards to Non-Profit Booster Clubs. The biggest ones being that the booster club cannot have any connection to a "for profit" business. It has to be run independently by a board and the gym owners can have no say in what they do or don't do or where the money goes. Also, funds must be shared equally amongst all members. So, if Sally sells 100 candles and Susie sells 1 they still have to share equally. This sharing of funds has upset many parents so we have yet to get a Booster Club off the ground. I realize there are a lot of Booster Clubs out there that are not following the IRS rules and I guess the rationale is that there is a slim chance that they will get caught. But as the IRS agent informed us, penalties are extremely severe and its not a chance we want to take. We want to be in full compliance. There are a lot of benefits to a Non-Profit booster club from increased marketing and fundraising opportunities. I would hope parents would understand that and be open to the sharing of funds as I think it would pay off for everyone. There are many other rules and guidelines to running Non-Profit Booster Clubs. I would implore anyone either currently running or about to create a Non-Profit to consult the IRS guidelines so that you know what you are doing and don't find yourself in trouble.

Date: Sat Jul 26 4:13 PM, 2008

Anonymous wrote:

We have actually met with an IRS agent and there are extremely strict rules in regards to Non-Profit Booster Clubs. The biggest ones being that the booster club cannot have any connection to a "for profit" business. It has to be run independently by a board and the gym owners can have no say in what they do or don't do or where the money goes. Also, funds must be shared equally amongst all members. So, if Sally sells 100 candles and Susie sells 1 they still have to share equally. This sharing of funds has upset many parents so we have yet to get a Booster Club off the ground. I realize there are a lot of Booster Clubs out there that are not following the IRS rules and I guess the rationale is that there is a slim chance that they will get caught. But as the IRS agent informed us, penalties are extremely severe and its not a chance we want to take. We want to be in full compliance. There are a lot of benefits to a Non-Profit booster club from increased marketing and fundraising opportunities. I would hope parents would understand that and be open to the sharing of funds as I think it would pay off for everyone. There are many other rules and guidelines to running Non-Profit Booster Clubs. I would implore anyone either currently running or about to create a Non-Profit to consult the IRS guidelines so that you know what you are doing and don't find yourself in trouble.

You are so right! This is exactly what I was talking about. Our gym did get a booster club off the ground... but it is frustrating to have "the few" working so hard to support "the many". We are working hard to try to get everyone to want to be involved even when it means their efforts can not directly support their individual child. But we are adamant about staying within the letter of the law.

Also, someone asked before whether you can require families to join... NOPE! They can choose not to join and their child must still receive the same benefits as those who do join. You can not require a "buy out" either. A non profit 501c3 booster club must benefit everyone regardless of how much or how little work they put in. We try to stress that we are doing this for the kids. And that it is all about teaching your children the importance of "team work" and helping each other.

Again, I am speaking specifically about a Booster Club set up within the IRS guidelines for a non-profit. You CAN set up a Booster Club that is NOT a non-profit and the rules are different, but then you do not get the tax benefits or some of the fundraising opportunities that a non profit does get.

CheerTyme Owner · Senior Member

My lawyer has checked our policies and procedures and said we were within the IRS guidelines....I guess I better check in with him again! Thanks for your input!!!!

Date: Sat Jul 26 9:14 PM, 2008

If it is a booster club that is not a non-profit, does these mean little Mary can get the all the profits from her candle sales and it does not have to be split evenly among all the gym members? I am pretty sure ours is not a non-profit because businesses making contributions for specific members DON'T get a tax deduction. Does this sound right?

Date: Sat Jul 26 11:16 PM, 2008

I would think if a business is making a contribution to a specific member they will expect to use it as a tax deduction, unless specifically told otherwise by the gym. The IRS laws sound confusing to me.

Date: Sun Jul 27 5:58 AM, 2008

you guys, individual fundraisings have been around for years. Ask any gymnastic centers.

Yes, you can have an individual account.

However, here is where it need to remain in the guide lines of the law. A portion of your earnings must be contributed to a general fund. Say, a cheerleader sales $300 in candles. The over all profit for this event was $100.00. Out of that $100.00 the cheerleader is require to contribute 20% to the general fund. In the end the general fund gets $20.00 and the individiual gets $80.00. (that $80.00 gets put into an reimbursable account).

Remember, the $20.00 is now in a general fund. That general fund is then distributed to all the members - maybe all the members get snacks at the competitions. This meets the federal law.

Yes, there needs to be a general fund and these funds need to benefit all. However, the law does not state that you must contribute 100% of all your fundraising efforts. That way those who work can still benefit greatly for the extra effort they put into a fundraising event.

Date: Sun Jul 27 7:11 AM, 2008

Anonymous wrote:

you guys, individual fundraisings have been around for years. Ask any gymnastic centers.

Yes, you can have an individual account.

However, here is where it need to remain in the guide lines of the law. A portion of your earnings must be contributed to a general fund. Say, a cheerleader sales $300 in candles. The over all profit for this event was $100.00. Out of that $100.00 the cheerleader is require to contribute 20% to the general fund. In the end the general fund gets $20.00 and the individiual gets $80.00. (that $80.00 gets put into an reimbursable account).

Remember, the $20.00 is now in a general fund. That general fund is then distributed to all the members - maybe all the members get snacks at the competitions. This meets the federal law.

Yes, there needs to be a general fund and these funds need to benefit all. However, the law does not state that you must contribute 100% of all your fundraising efforts. That way those who work can still benefit greatly for the extra effort they put into a fundraising event.

Unfortunately it doesn't work this way if the fundraising is done under the umbrella of the booster club which is set up as a 501c3. You can do individual fundraising under the umbrella of the gym (a for profit business) which goes to your individual account. If you are not a 501c3 businesses can contribute to the gym on behalf of little Suzy and take the tax write off as "advertising" but not as a donation to a non profit.

That said, many non profit (again this is important, how the booster club is set up for tax purproses) do place money in individual accounts, require you to join, have buyouts etc. but if you speak to an IRS agent about the regulations you will see that all of these things could get you into trouble as a 501c3. There are so many 501c3s out there that you aren't likely to get the finger pointed at you, but just know that the risk is there.

Date: Sun Jul 27 12:56 PM, 2008

Anonymous wrote:

Anonymous wrote:

you guys, individual fundraisings have been around for years. Ask any gymnastic centers.

Yes, you can have an individual account.

However, here is where it need to remain in the guide lines of the law. A portion of your earnings must be contributed to a general fund. Say, a cheerleader sales $300 in candles. The over all profit for this event was $100.00. Out of that $100.00 the cheerleader is require to contribute 20% to the general fund. In the end the general fund gets $20.00 and the individiual gets $80.00. (that $80.00 gets put into an reimbursable account).

Remember, the $20.00 is now in a general fund. That general fund is then distributed to all the members - maybe all the members get snacks at the competitions. This meets the federal law.

Yes, there needs to be a general fund and these funds need to benefit all. However, the law does not state that you must contribute 100% of all your fundraising efforts. That way those who work can still benefit greatly for the extra effort they put into a fundraising event.

Unfortunately it doesn't work this way if the fundraising is done under the umbrella of the booster club which is set up as a 501c3. You can do individual fundraising under the umbrella of the gym (a for profit business) which goes to your individual account. If you are not a 501c3 businesses can contribute to the gym on behalf of little Suzy and take the tax write off as "advertising" but not as a donation to a non profit.

That said, many non profit (again this is important, how the booster club is set up for tax purproses) do place money in individual accounts, require you to join, have buyouts etc. but if you speak to an IRS agent about the regulations you will see that all of these things could get you into trouble as a 501c3. There are so many 501c3s out there that you aren't likely to get the finger pointed at you, but just know that the risk is there.

Not unless one check is writen to the gym and the gym puts it into whom evers account they choose to.