501(c)(3) can you require fundraising?

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501(c)(3) can you require fundraising?

Postby Jay69 » Mon Jul 15, 2013 12:44 pm

If you belong to a booster club can that booster club require you to fundraise? From my understanding they can not but I can not find where such verbiage is, I started with following link and came up blank.

http://www.irs.gov/irm/part4/irm_04-076-051.html

One of the booster clubs we belong to (sons public high school soccer team) requires a $200 check from the parents to buy raffle tickets (200 tickets), you can sell the tickets or keep them for yourself. This is over and beyond the $300 the school charges.

According the to booster club you no choice and you have to fess up the $200 and can not return the tickets.

Not only does this rub me the wrong way but the way they spend the dollars rubs me the wrong way as well. We have 4 teams and from what I understand the funds should be reasonable split even to all kids under a 501(c)(3). My sons is not on the top team so for the past 2 years we have paid $200 for a pair of socks and a pot luck banquet. Its getting a little old.

You are required to join the booster club or you don't make a team.
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Re: 501(c)(3) can you require fundraising?

Postby Calm Man » Mon Jul 15, 2013 12:48 pm

I would view it as a far less expensive version that having tax dollars used for things you don't want. (This is not meant to be political.) You can't control anything and the cost of a one hour legal consultation will be more than the fee. I would just pay it and one of these years it will be over. Thought of in a positive way, without the booster club your kids might not be playing the sports they want to.
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Re: 501(c)(3) can you require fundraising?

Postby Jay69 » Mon Jul 15, 2013 2:28 pm

The thing that gets me is that I'm on the board as a newbie for another booster club. From what I understand we cannot make people fundraise, all funds are mostly equal, etc. I have asked why but the way these boards change hands so often nobody seems to have a good reason why they do what they do.

Guess its the engineer in me, want to know what the codes are :wink:

I have no problem paying for sports, lord knows we pay enough, about $400/month in sport fees for two kids. I kept a detail budget these past 3-4 years and it was a eye opener at how fast all these little fees add up.
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Re: 501(c)(3) can you require fundraising?

Postby user5027 » Mon Jul 15, 2013 9:06 pm

Jay69 wrote:I kept a detail budget these past 3-4 years and it was a eye opener at how fast all these little fees add up.


Hope they never take a liking to ice hockey or horseback riding. :happy
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Re: 501(c)(3) can you require fundraising?

Postby dickenjb » Tue Jul 16, 2013 9:11 am

Suck it up and live with it. It is part of having your kids play sports. For years we were required to buy overpriced crappy food from brochures and we would fill our freezer with pizza kits and etc. These were structured such that at least 50% of the purchase price went to the booster club. The products were inferior in every way to what we could buy at the supermarket and twice the price. But being Bogleheads we would eventually eat the stuff.

For soccer we often had to buy lottery tickets as well. Of course we did not sell them to others but just held on to them. Par for the course. At least we did not feel compelled to eat the lottery tickets.
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Re: 501(c)(3) can you require fundraising?

Postby Ted Valentine » Tue Jul 16, 2013 10:20 am

This seems to answer your question: https://en.wikipedia.org/wiki/501(c)_organization#General_compliance_issues


a 501(c) organization is subject to tax on ... but not including selling donated merchandise or other business or trade carried on by volunteers, or certain bingo games


Also are there not expenses that are communal such as field maintenance, goals, nets, field paint, referees, lights, PA systems, score boards, etc?
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Re: 501(c)(3) can you require fundraising?

Postby Luke Duke » Tue Jul 16, 2013 12:09 pm

What state do you live in?
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Re: 501(c)(3) can you require fundraising?

Postby Jay69 » Tue Jul 16, 2013 4:15 pm

Luke Duke wrote:What state do you live in?



Minnesota
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Re: 501(c)(3) can you require fundraising?

Postby Jay69 » Tue Jul 16, 2013 4:17 pm

Ted Valentine wrote:
Also are there not expenses that are communal such as field maintenance, goals, nets, field paint, referees, lights, PA systems, score boards, etc?


Yes, paid for by the school and your other soccer school fee's.
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Re: 501(c)(3) can you require fundraising?

Postby Sam I Am » Tue Jul 16, 2013 5:03 pm

Message deleted.
Last edited by Sam I Am on Sun Oct 06, 2013 11:47 am, edited 1 time in total.
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Re: 501(c)(3) can you require fundraising?

Postby jsl11 » Tue Jul 16, 2013 5:53 pm

Here is a better way to raise funds. I played in the band when I was in high school. We had a band/orchestra parents association. The parents asked their business acquaintances to put ads in our program book. Everyone has businesses they patronize. It could be your auto mechanic, your insurance agent, etc. If you are a good customer, it is hard for them to refuse you. Also, since it is real advertising, they get to deduct the expense on their taxes. This worked so well, that the parents never had to pay anything out of their own pockets to support the organization. We had plenty of expenses that were not covered by the school board, such as uniforms and travel expenses. The only things we had to sell were concert tickets and there was no requirement. Other than parents and grandparents, the tickets were almost impossible to sell anyway.
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Re: 501(c)(3) can you require fundraising?

Postby Jay69 » Wed Jul 17, 2013 8:20 am

Sam I Am wrote:One reason the higher level team might be allocated more funds might be the team travels more. At least that was the case when my daughter played. There was a tournament darn near every weekend it seemed. The team bought lunch and snacks for the players. I think over the years we experienced about every darn fund-raiser in the world.


SamI Am



In the high school program its the same number of games and against the same schools for the most part. Now the other soccer league we belong its a mix bag of who you play and where you go.
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Re: 501(c)(3) can you require fundraising?

Postby Jay69 » Wed Jul 17, 2013 8:28 am

jsl11 wrote:Here is a better way to raise funds. I played in the band when I was in high school. We had a band/orchestra parents association. The parents asked their business acquaintances to put ads in our program book. Everyone has businesses they patronize. It could be your auto mechanic, your insurance agent, etc. If you are a good customer, it is hard for them to refuse you. Also, since it is real advertising, they get to deduct the expense on their taxes. This worked so well, that the parents never had to pay anything out of their own pockets to support the organization. We had plenty of expenses that were not covered by the school board, such as uniforms and travel expenses. The only things we had to sell were concert tickets and there was no requirement. Other than parents and grandparents, the tickets were almost impossible to sell anyway.
Jeff


That's a good idea, one we used to use. With the economy in the tank most business have not been so generous lately and I completely understand.

We have not participated in any fundraisers that require selling of candy, popcorn, fruit, gift cards etc. We have been lucky to be able to pay our way. Now if we are having a show, hosting a meet, golf fundraiser we donate our time for all the events, that's just the way we prefer to give back.
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Re: 501(c)(3) can you require fundraising?

Postby Luke Duke » Wed Jul 17, 2013 11:44 am

Raffles are a bit tricky. Most people don't realize that there are a lot of restrictions involved. There's a good chance that they are violating one of the requirements.

http://mn.gov/gcb/AppExemptExcRaffleOnly.htm
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