Legal Question in Business Law in New Jersey
Non-Profit 501(c) 3 - Gymnastics Booster Club By-Laws Info Required
I have recently been assigned to assist in writing the by-laws for a gymnastics booster club. It appears that most clubs operated with by-laws which I feel cannot be agreeable with the IRS or state gov. I need to find out where I can find documentation about what are we allowed to do and what not. Presently, members are being charged if not participating in events. My research implies this is wrong. Additionally, those who ''cover'' the individuals time at events are given that charge directly to their ''individual'' account. Again, this is questionable to me. Presently the by-laws state that the booster club pay for coach education and certifications. This is costly and I feel this should be part of the cost the gym itself (being the employer of the coach) should cover and not the booster club. Last item- fundraising profits go into ''individual'' accounts. What I have read, briefly, is that the profits must go into the booster club's general account for the use of the whole club and not individual participants.
Please advise...Rob
1 Answer from Attorneys
Re: Non-Profit 501(c) 3 - Gymnastics Booster Club By-Laws Info Required
I am presuming that the entity will be a 501(c)(3) organization (tax exempt for both IRS and state purposes) and the forms you need are part of the organizational requirements. I have represented a number of these organizations (ranging from fencing clubs, Pop Warner football organizations, to ESL programs and pure charities). If you need assistance, as the documentation required is specialized, you can contact me directly. If the concept of the organization is to raise funds for the organization (one or more teams), the entity, as an entity, must receive the funds to be used to support the program. You cannot specifically sponsor a particular gymnast and get tax deductions for contributions. I think we need to talk more about what you are trying to accomplish, so any necessary documents can be prepared. By way of example, as to my confusion, I represent an organization that raises funds to provide provide programs for school-age children, where the types of programs are not available through the school system. They have taken children on tours to historic sights, places like Hershey Park and the like. Not every child covered by the program has gone on these fieldtrips, but they are available to all, although some outings have limited capacity. The entity pays the costs, from its contributions, and no portion of the funds can be specifically allocated to a particular child.