Booster News: Booster Club Loses Nonprofit Status

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Booster clubs can lose non-profit status with the IRS. A recent Forbes article brought this to our attention again, highlighting an IRS ruling from late August. “Capital Gymnastics operated in a manner that allowed substantial private inurement,” said the ruling. “[Capital Gymnastics] promoted private, non-public interests.” How did Capital Gymnastics ruin it’s 501(c)(3) status? Using a point system. Parents who didn’t want to fundraise paid, while other parents did collective fundraising … [Read more...]

3 Ways to Get 501(c)(3) Status and Become a Nonprofit Booster Club

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Thinking about starting a booster club? Not sure how to certify it as a nonprofit organization? As you may know, becoming a nonprofit makes your club tax-free* and allows donors to make tax-deductible donations. But if you’re starting a new club or resurrecting an old one, it can be a daunting task. Don’t worry! Others have come before you, and done what you’re about to do. There are at least three ways to become a nonprofit, or more specifically, an IRS-designated 501(c)(3). I’m not a lawyer, … [Read more...]