How much does it really cost

You gotta read this one

You really need to visit Parent Booster USA

 

Credit for hours worked

No More Excuses

This one is good

Letter from Director of Exempt Orgs of the IRS

 

Site purpose

To help parents and gym owners to ensure that they are fully complying with IRS 501(c)3 rules for non-profits.

Question: Does your booster club use "Individual Fundraising Accounts" (IFA). If so visit Parent Booster USA to find out if it's legal.

The current problem

Currently many gymnastic parent associations (booster clubs) have formed as a 501(c)3 non-profit for the purpose of raising funds in support of competing gymnast (male and female). Although this is nobel but it may not conform to IRS rules. Listed below are various links that give clear guidance to the proper formation of a gymnastic parent association / booster club

If your booster club is requiring you to do the following you really need to read the information on this site.

Each one of these documents can be found on www.irg.gov.

I would ask that you especially read the links on the right and left side.

IRS documents

VA Gaming Rules

Here is the Virginia Gaming Rules Prohibited Practices


§ 18.2-340.33. Prohibited practices

Excerpt: 2. Except as provided in § 18.2-340.34:1, no qualified organization shall enter into a contract with or otherwise employ for compensation any person for the purpose of organizing, managing, or conducting any charitable games. However, organizations composed of or for deaf or blind persons may use a part of their gross receipts for costs associated with providing clerical assistance in the management and operation but not the conduct of charitable gaming.
-----End of Excerpt----

In my own words....

Now some would say that as long as the booster club did not write the check or pass along the funds then a paid volunteer is exceptable. The problem comes when the organization is facilitating the connection between the organization member and a bingo sub. As a member of the organization you should not be compensating anyone to do you volunteer work. The real question is if the IRS and the VA Gaming does not require the booster members to do the fund raiser in order to receive funds distributed then why is the booster club mandating participation in the fund raiser.

Fund raising Issues

Question: Does your booster club use "Individual Fundraising Accounts" (IFA). If so visit Parent Booster USA to find out if it's legal.

Many PA's and BC's conduct fundraiser with the intent to help parents reduce their cost for the sport. Recently the IRS has begun to penalize such organizations as much as $30,000. Please read following web sites.

IRS and Bingo

Examples of PA's and BC's by-laws

The best set of by-laws are on ACROS Gymnastics Booster Club web site (acrosgymnasticsboosterclub.org).

Please read these two documents. Click Here for the by-laws. These by-laws follow the IRS rules for 501(c)3 pretty accurately.

Click Here for ACROS stand rules. What is interesting is in section 1. They clearly state that if a gymnast fees are not paid they can not compete or participate in fundraisers. Most clubs base gymnast level of competing on doing fundraisers first. In section 12 states that participation in fundraising is requested. Which means it is not mandatory.