How do booster clubs work with cheer gyms?

Date: Sun Jul 27 1:02 PM, 2008

RE: How do booster clubs work with cheer gyms?

Date: Sun Jul 27 1:07 PM, 2008

The booster club has a board and they have to actually vote where the money goes to. So, where ever the gym is that you go to, if they have a booster club that is the one you would join. Booster clubs are not allowed to give money to the gym, but they can pay for comps, uniforms, shoes and other things for the athletes.

Date: Sun Jul 27 1:16 PM, 2008

Anonymous wrote:

Now here is a question that I have for everyone. Is a booster club open to the public? If your by-laws state that members are those who have kids who are in competitive cheer and dance can any parent from any gym join? Since we now have kids who travel to Southern California to cheer, can those parents join a booster club in the Bay Area to fundraise? Most boosters clubs are set up by the parents of a specific gym.

yes, our booster club is set up to help "athletes". All sports are welcome as long as the athlete is a member with our particular booster club.

Date: Sun Jul 27 1:18 PM, 2008

Anonymous wrote:

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.

I gave the first example. I think I am confusing you when I say account. I think the most common thought would be the account at the gym. This isn't the case in my example.

Date: Sun Jul 27 1:32 PM, 2008

Anonymous wrote:

The booster club has a board and they have to actually vote where the money goes to. So, where ever the gym is that you go to, if they have a booster club that is the one you would join. Booster clubs are not allowed to give money to the gym, but they can pay for comps, uniforms, shoes and other things for the athletes.

So what would you do for the 4 kids that travel to southern california? Do the parents join the booster club down at CA and travel to Southern CA to fundraise? If a booster club is open to the public and does not support a for profit then anyone should be able to join?

Date: Sun Jul 27 2:08 PM, 2008

Anonymous wrote:

Anonymous wrote:

The booster club has a board and they have to actually vote where the money goes to. So, where ever the gym is that you go to, if they have a booster club that is the one you would join. Booster clubs are not allowed to give money to the gym, but they can pay for comps, uniforms, shoes and other things for the athletes.

So what would you do for the 4 kids that travel to southern california? Do the parents join the booster club down at CA and travel to Southern CA to fundraise? If a booster club is open to the public and does not support a for profit then anyone should be able to join?

Yes, the parents would have to join the booster club down at Ca and travel to Southern CA to fundraise. Yes anyone can join or give to the booster club. And because it is non profit it is a tax right off. That's a good thing too! Good luck with all that for the athletes involved, and their folks.

Date: Sun Jul 27 5:33 PM, 2008

http://en.allexperts.com/q/Nonprofit-Law-2266/2008/7/Benefits-parents.htm

http://en.allexperts.com/q/Nonprofit-Law-2266/2008/7/Booster-club-cheerleading-organization.htm

http://en.allexperts.com/q/Nonprofit-Law-2266/2008/7/510-c-3.htm

http://en.allexperts.com/q/Nonprofit-Law-2266/2008/7/booster-club-1102.htm

http://en.allexperts.com/q/Nonprofit-Law-2266/2008/7/Donation-child-1.htm

And as for 80/20 or however some choose to do it
http://en.allexperts.com/q/Nonprofit-Law-2266/2008/7/improper-fundraising-proceeds-distribution.htm

Date: Sun Jul 27 6:07 PM, 2008

Anonymous wrote:

The booster club has a board and they have to actually vote where the money goes to. So, where ever the gym is that you go to, if they have a booster club that is the one you would join. Booster clubs are not allowed to give money to the gym, but they can pay for comps, uniforms, shoes and other things for the athletes.

And let me say, it has to show on the books for all the athletes in that particular program. They have to show equal amount for each child on the teams. The money is clearly voted on by the board. With our parents, if they won't work the fundraisers than we ask them to help by making donations to the booster fund. It is a tax write off because it is a nonprofit group, unlike the gym payments,which are not tax write offs. All parents need to be onboard for this. Pay close attention. There are ways to work within the system without corrupting. Good luck!

Date: Sun Jul 27 6:45 PM, 2008

Good this to know.

Coming from a parent who has seen booster clubs gone bad....

I hope that parents remember that booster clubs are set up for the kids. We all know that parents talk and start drama. What type of a role models do we show ours kids we are? If we can come together and work as a team to provide for them what they need to part take in this cheer each year, we are showing them what their coaches show them out on that floor...TEAMWORK!

Date: Sun Jul 27 7:13 PM, 2008

Anonymous wrote:

Good this to know.

Coming from a parent who has seen booster clubs gone bad....

I hope that parents remember that booster clubs are set up for the kids. We all know that parents talk and start drama. What type of a role models do we show ours kids we are? If we can come together and work as a team to provide for them what they need to part take in this cheer each year, we are showing them what their coaches show them out on that floor...TEAMWORK!

i know a booster club in northern california that uses it gymnnatics booster club id to fundraise for its cheer program. and we turned them into the irs because it is illegal. it is a seperate business and program and you are not allowed to do that. they also have not elected new board members either. we chose not to participate in the booster program, we will not be part of the illegal activity at all

Date: Sun Jul 27 7:42 PM, 2008

So...you can have a booster club THAT IS NOT SET UP AS A NON-PROFIT, and that is how the kids can have individual accounts???? And that is why a contribution by a business could be written off as an ADVERTISING expense, but not a charitable deduction???

Basically, there is more than one type of booster club??? The non-profit (the 501c) where a business could write off a contribution as a charitable deduction??

Date: Sun Jul 27 9:16 PM, 2008

Anonymous wrote:

So...you can have a booster club THAT IS NOT SET UP AS A NON-PROFIT, and that is how the kids can have individual accounts???? And that is why a contribution by a business could be written off as an ADVERTISING expense, but not a charitable deduction???

Basically, there is more than one type of booster club??? The non-profit (the 501c) where a business could write off a contribution as a charitable deduction??

All of this is confusing IMO, and I know I should read all the links someone posted but I'm too tired, lol. I think the bottom line is this, if your gym has a booster club, they need to be very specific about how it works. If they are non-profit, they need to tell you exactly what that means and what you can and can't do, and how the money is divided. If it is "for profit", same thing, they need to tell you that, and what it means. Just ask. If you don't feel comfortable with the answers you are getting and fear you may be doing something illegal, then definitely do your research; I'm sure the helpful links someone has posted is a good start. Then confront them with your concerns, maybe they don't realize they're doing something illegal.

Date: Sun Jul 27 9:28 PM, 2008

Anonymous wrote:

So...you can have a booster club THAT IS NOT SET UP AS A NON-PROFIT, and that is how the kids can have individual accounts???? And that is why a contribution by a business could be written off as an ADVERTISING expense, but not a charitable deduction???

Basically, there is more than one type of booster club??? The non-profit (the 501c) where a business could write off a contribution as a charitable deduction??

Wow, you just totally lost me. Where did this all come from? I think you are getting seriously confused!

Date: Sun Jul 27 9:30 PM, 2008

Anonymous wrote:

Anonymous wrote:

So...you can have a booster club THAT IS NOT SET UP AS A NON-PROFIT, and that is how the kids can have individual accounts???? And that is why a contribution by a business could be written off as an ADVERTISING expense, but not a charitable deduction???

Basically, there is more than one type of booster club??? The non-profit (the 501c) where a business could write off a contribution as a charitable deduction??

All of this is confusing IMO, and I know I should read all the links someone posted but I'm too tired, lol. I think the bottom line is this, if your gym has a booster club, they need to be very specific about how it works. If they are non-profit, they need to tell you exactly what that means and what you can and can't do, and how the money is divided. If it is "for profit", same thing, they need to tell you that, and what it means. Just ask. If you don't feel comfortable with the answers you are getting and fear you may be doing something illegal, then definitely do your research; I'm sure the helpful links someone has posted is a good start. Then confront them with your concerns, maybe they don't realize they're doing something illegal.

Exactly, thanks, because this person lost me.

Date: Sun Jul 27 9:36 PM, 2008

Anonymous wrote:

Anonymous wrote:

Good this to know.

Coming from a parent who has seen booster clubs gone bad....

I hope that parents remember that booster clubs are set up for the kids. We all know that parents talk and start drama. What type of a role models do we show ours kids we are? If we can come together and work as a team to provide for them what they need to part take in this cheer each year, we are showing them what their coaches show them out on that floor...TEAMWORK!

i know a booster club in northern california that uses it gymnnatics booster club id to fundraise for its cheer program. and we turned them into the irs because it is illegal. it is a seperate business and program and you are not allowed to do that. they also have not elected new board members either. we chose not to participate in the booster program, we will not be part of the illegal activity at all

Well, I don't know if I would go that far. But I would tell them to get legal advice from a cpa and an attorney to make sure everything they are doing is correct. Because rather you call on them or not, they will have to deal with the IRS. They watch nonprofit groups closely. And remember this, booster clubs are made up of parents trying to get a good thing going for athletes and their folks, to ease the finances. There not perfect, but try to give them the benefit of the doubt and lead them on the straight and narrow.

Date: Sun Jul 27 9:49 PM, 2008

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

So...you can have a booster club THAT IS NOT SET UP AS A NON-PROFIT, and that is how the kids can have individual accounts???? And that is why a contribution by a business could be written off as an ADVERTISING expense, but not a charitable deduction???

Basically, there is more than one type of booster club??? The non-profit (the 501c) where a business could write off a contribution as a charitable deduction??

All of this is confusing IMO, and I know I should read all the links someone posted but I'm too tired, lol. I think the bottom line is this, if your gym has a booster club, they need to be very specific about how it works. If they are non-profit, they need to tell you exactly what that means and what you can and can't do, and how the money is divided. If it is "for profit", same thing, they need to tell you that, and what it means. Just ask. If you don't feel comfortable with the answers you are getting and fear you may be doing something illegal, then definitely do your research; I'm sure the helpful links someone has posted is a good start. Then confront them with your concerns, maybe they don't realize they're doing something illegal.

Exactly, thanks, because this person lost me.

Yes you can set up a booster club to fundraise for individual athletes, but the booster club will be a 501c(3) or NON PROFIT booster club and is not TAX EXEMPT. By being Tax exempt, the booster club does not get taxed on the income that the booster club recieves. If you are not tax exempt then you pay taxes. If companies or people donate money to the booster club THEY CAN NOT WRITE IT OFF!

If you still don't understand, consult with a tax attorney or the IRS.

Date: Sun Jul 27 11:08 PM, 2008

Why would a non-profit NOT be exempt from taxes?? You would think it would be the opposite, a profit would have to pay taxes, a non-profit would be exempt. Either your post is incorrect or it's even more confusing than I thought.

Date: Mon Jul 28 6:44 AM, 2008

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

So...you can have a booster club THAT IS NOT SET UP AS A NON-PROFIT, and that is how the kids can have individual accounts???? And that is why a contribution by a business could be written off as an ADVERTISING expense, but not a charitable deduction???

Basically, there is more than one type of booster club??? The non-profit (the 501c) where a business could write off a contribution as a charitable deduction??

All of this is confusing IMO, and I know I should read all the links someone posted but I'm too tired, lol. I think the bottom line is this, if your gym has a booster club, they need to be very specific about how it works. If they are non-profit, they need to tell you exactly what that means and what you can and can't do, and how the money is divided. If it is "for profit", same thing, they need to tell you that, and what it means. Just ask. If you don't feel comfortable with the answers you are getting and fear you may be doing something illegal, then definitely do your research; I'm sure the helpful links someone has posted is a good start. Then confront them with your concerns, maybe they don't realize they're doing something illegal.

Exactly, thanks, because this person lost me.

Yes you can set up a booster club to fundraise for individual athletes, but the booster club will be a 501c(3) or NON PROFIT booster club and is not TAX EXEMPT. By being Tax exempt, the booster club does not get taxed on the income that the booster club recieves. If you are not tax exempt then you pay taxes. If companies or people donate money to the booster club THEY CAN NOT WRITE IT OFF!

If you still don't understand, consult with a tax attorney or the IRS.

I think you mistyped. A 501c3 (non profit) can NOT (generally speaking) raise money for individual athletes. A FOR PROFIT can!

Date: Mon Jul 28 7:26 AM, 2008

Geeez, this is confusing enough as it is, please re-read your posts before hitting submit so you don't mis-type the wrong information. Thank you.

Date: Mon Jul 28 8:42 AM, 2008

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

So...you can have a booster club THAT IS NOT SET UP AS A NON-PROFIT, and that is how the kids can have individual accounts???? And that is why a contribution by a business could be written off as an ADVERTISING expense, but not a charitable deduction???

Basically, there is more than one type of booster club??? The non-profit (the 501c) where a business could write off a contribution as a charitable deduction??

All of this is confusing IMO, and I know I should read all the links someone posted but I'm too tired, lol. I think the bottom line is this, if your gym has a booster club, they need to be very specific about how it works. If they are non-profit, they need to tell you exactly what that means and what you can and can't do, and how the money is divided. If it is "for profit", same thing, they need to tell you that, and what it means. Just ask. If you don't feel comfortable with the answers you are getting and fear you may be doing something illegal, then definitely do your research; I'm sure the helpful links someone has posted is a good start. Then confront them with your concerns, maybe they don't realize they're doing something illegal.

Exactly, thanks, because this person lost me.

Yes you can set up a booster club to fundraise for individual athletes, but the booster club will be a 501c(3) or NON PROFIT booster club and is not TAX EXEMPT. By being Tax exempt, the booster club does not get taxed on the income that the booster club recieves. If you are not tax exempt then you pay taxes. If companies or people donate money to the booster club THEY CAN NOT WRITE IT OFF!

If you still don't understand, consult with a tax attorney or the IRS.

I think you mistyped. A 501c3 (non profit) can NOT (generally speaking) raise money for individual athletes. A FOR PROFIT can!

yes yes sorry ....Yes you can set up a booster club to fundraise for individual athletes, but the booster club will be NOT be a 501c(3) or NON PROFIT booster club and is not TAX EXEMPT.