Parents Sponsorship money split amongst all gymnast or just boosters?

[dbean]

I am trying to consider the value of a boosters club. We established one last November and have had a lot of confusion on the rules of a 501 (c). We are experiencing similar problems as many other boosters, you have a handful of families doing all the work but plenty of parents with their hands out, so we were trying to find a way to earn funding without putting so much pressure on a set few who continuously give their time and money. To help with this we decided to do sponsorship and so far have two sponsors but now the gym has sent out booster email out to the entire gym and said that every team member will profit from this.

If the sponsorship is given to a non-profit why don't the booster families profit from it. To me, it reduces the value of a booster club. Why pay into boosters if you gain the funds either way.

 

[Deleted member 14190]

Not sure I understand the whole post, but the booster club is supposed to raise money for the entire team, not just the families working to be on the booster "board".

 

[bookworm]

you have a handful of families doing all the work but plenty of parents with their hands out, so we were trying to find a way to earn funding without putting so much pressure on a set few who continuously give their time and money. To help with this we decided to do sponsorship and so far have two sponsors but now the gym has sent out booster email out to the entire gym and said that every team member will profit from this.

QUOTE]

In order to be in compliance with the rules of a 501(C) , all team members have to benefit from any type of funds raised , whether through fundraisers (such as a meet, candy sales etc) or a sponsorship type program....like you say , a handful of people do the work but all must benefit...this is why I've never been a fan of booster clubs to begin with because if I'm going to work at all these fundraising things to benefit the whole group, I might as well work a few extra hours at my regular job and have the funds raised here go directly to my kid....

 

[blueredzone]

Here in lies the problem. Since it directly doesn't benefit ppls kids they don't do anything. However it does help everyone out.

We have this problem at our gym.

As someone who is trying to get more ppl involved this is upsetting. Maybe if they dont donate they have to wear dunce hats at the awards banquet. Lol. I wish. But it does benefit the whole team/gym to participate in fundraising

 

[Gymdad2]

So could a booster club drop the 501 status and avoid the IRS rules that go with it?

 

[Natasha]

You can drop the 501 status, but then sponsors can't claim any donation as a tax deduction and your boosters have to pay taxes on any money raised.

 

[HoldThePhone]

Our Booster club is not a 501c3 so businesses can't claim the tax write off for it, but they can use it as a part of their advertising budget, etc. So far it hadn't been an issue really, at least for the parents /businesses I've spoken to. It's been a benefit for us to not have a 501c3 I feel.

 

[skschlag]

Ours is a separate entity from the gym, so families have to join the club. Then all members benefit equally. We do things for everyone as well, but mostly the members are the beneficiaries.

 

[flippin out]

It is very confusing, all the guidelines. And when I call NCAA legal for advice (I had questions on what funds were allowed to be used for) they can only give verbal info, they are not allowed to put anything in writing (seems shady to me).

I have been a part of both gym run boosters (no idea how legal it was for NCAA guidelines....I'm guessing not very since I know of at least 3 violations) and Parent run Boosters clubs. Issue I have is 501c3 or not, if you have individual accounts for gymnasts then NCAA will discredit a kid for scholarships (at least that's what I got from the talk with their legal). BUT....if you have an everyone must profit, where is the incentive to raise funds? There are always a few who do all the work while having to share the proceeds with those who refuse to do anything. Solution would be to make Booster non-mandatory and then REQUIRE that all members donate X amount of hours. If you can't donate your time, then don't join.

We currently are required to join the parent run booster, but since they are not 501c3 and have individual accounts I have opted to only participate in the fundraisers that benefit the entire team equally. In all honesty, I'd prefer to have the choice to join or not.....I'd choose not to join! The whole NCAA thing is a landmine and I'd rather avoid boosters totally because of it.

Of coarse, NCAA could (and SHOULD) send out information packets to those requesting guidelines! I requested that the gentleman I talked with please send me a copy of the specific rules he was quoting and his response....no conversation or information was allowed to leave their office in written form....WTH??!!?? I mean really, who expects you to comply with all the rules and then refuses to put anything in writing????? Stupid!

 

[gasrgoose]

We've been at gyms with booster clubs (disasters) and now are at a gym without a booster club. I much prefer a gym without a booster club. I don't quite get the idea of having a booster club.

Dbean, why did you start the booster club?

As a side bar the booster club presidents from our former gym were fraudulently sued for misuse of the funds. The plaintiff was a disgruntled parent who had been booted from the gym for failure to pay dues. I don't understand why anyone who isn't financially involved in a gym would subject themselves to that potential liability.

 

[z2akids]

Our Boosters are separate from the gym. They are optional, but most everyone participates. If you join, you receive a full share in the benefits - end of season banquet, partial reimbursement for meet fees, coaches fees and competition gear, etc. Everyone is required (although I am not entirely sure that they can legally enforce the "required" part) to put in time at the meets that the boosters run.

Our meets being in a great deal of funds to the boosters and the gymnasts benefit greatly from it.

 

[skschlag]

We've been at gyms with booster clubs (disasters) and now are at a gym without a booster club. I much prefer a gym without a booster club. I don't quite get the idea of having a booster club.

Ahh. I have to say the booster club at our gym is the one reason we stayed this summer when we had no coach and no prospect of a coach. Our booster club pays USAG fees, uniform fees, team fee, all meet fees, travel for the gymnast and all coaches' fees. We also send the kids to camp each summer. I could not afford the sport without that!

 

[JBS]

Here are some links...

http://www.irs.gov/irm/part7/irm_07-025-026.html

http://www.irs.gov/irm/part4/irm_04-076-012.html

http://leafferlaw.com/amateur-sport...sing-structure-leads-to-revocation-of-status/

http://www.irs.gov/pub/irs-tege/eotopice87.pdf

http://www.irs.gov/pub/irs-tege/eotopich82.pdf

 

[bookworm]

We've been at gyms with booster clubs (disasters) and now are at a gym without a booster club. I much prefer a gym without a booster club. I don't quite get the idea of having a booster club.

As a side bar the booster club presidents from our former gym were fraudulently sued for misuse of the funds. The plaintiff was a disgruntled parent who had been booted from the gym for failure to pay dues. I don't understand why anyone who isn't financially involved in a gym would subject themselves to that potential liability.

I'm with you on this one...I can't see any benefit to any booster club I've been in ...we had to work ungodly hours (like 30-40) for very little return (around 200 bucks, if that ) ...I'd make more at a minimum wage job!!! The booster clubs I've been in have never been like some described covering " all meet and travel, coaches fees, leos and parties" ...I might be more open to it if they had covered a lot of that stuff..

Give me a gym with no booster club and I pay what I owe, you pay what you owe, and I'm good...

 

[gasrgoose]

Ahh. I have to say the booster club at our gym is the one reason we stayed this summer when we had no coach and no prospect of a coach. Our booster club pays USAG fees, uniform fees, team fee, all meet fees, travel for the gymnast and all coaches' fees. We also send the kids to camp each summer. I could not afford the sport without that!

Thanks for the response. Do they pay all those fees with money raised?

 

[skschlag]

Yes. They pay all of that with money raised. We also buy state gifts for all of the gymnasts, and do gifts for the team about once a year.

 

[Seeker]

Our booster club is well run and raises a significant amount of money that goes back to all the team kids -- similar to what skschlag described. It is a huge benefit. It would not be worth it if we only got like $200 benefit, but it is way more than that.

 

[Gymmonkeymomma]

Our Boosters are separate from the gym. They are optional, but most everyone participates. If you join, you receive a full share in the benefits - end of season banquet, partial reimbursement for meet fees, coaches fees and competition gear, etc. Everyone is required (although I am not entirely sure that they can legally enforce the "required" part) to put in time at the meets that the boosters run.

Our meets being in a great deal of funds to the boosters and the gymnasts benefit greatly from it.

@z2akids - how are coaches fees paid for families that do not join the booster club? Do you figure out fees per child, then charge a portion to the BC and separate amounts billed to individuals who are not members? Are these bills sent from the gym on behalf of coaches? Who goes after families that do not pay in a timely manner for coaching fees, uniforms, etc?

 

[z2akids]

@z2akids - how are coaches fees paid for families that do not join the booster club? Do you figure out fees per child, then charge a portion to the BC and separate amounts billed to individuals who are not members? Are these bills sent from the gym on behalf of coaches? Who goes after families that do not pay in a timely manner for coaching fees, uniforms, etc?

I am merely a booster member. I don't know exactly how it all works. My best assumption is that they estimate the fees for coaches to participate in meets and then divide by the number of gymnasts. At the start of fall we each get a bill from the gym showing our cost and then at the booster meeting, they trek us what percent they will be paying. As far as I know everyone has joined the booster club, but it is the gym's job to correct our portion of the fees. I would elect them to collect from anyone who didn't join. I don't know how they would handle it if someone didn't meet their financial obligations. We have had instances in the past where the total paid was greater than the total spent power gymnast. On that case, we have a credit towards our meet fees for the following season.

I don't know if they divide coach costs spread through the entire team or whether they get more specific. Optionals have a higher start total, but their meets cost more, etc.

This year as a compulsory gymnast, I am saving over $700 by being a member of the boosters - not including team events (banquet, gymnast gift, pool party, etc.) While DH and I could make approximately that amount if we worked overtime rather than our volunteer hours, we would miss out on the bonding, helping others, etc.

 

[bookworm]

I'm with you on this one...I can't see any benefit to any booster club I've been in ...we had to work ungodly hours (like 30-40) for very little return (around 200 bucks, if that ) ...
...

Forgot to add that in this memorable experience with a booster club, we worked 13 of the 15 sessions of our own hosted meet, had to pay an entrance fee of $120 for OUR OWN gymnast to be in this meet AND had to pay admission for the session we weren't working ($15 a head so $30 for both parents) to see our own child compete so actually the net for all this work was 50 bucks....not.worth.it.......