Parents Booster Club

[Spauley0315]

Hello,

We are a small gym (27 competitive gymnasts total) and us parents really do not want to have a non profit booster club. I have read too many horror stories on here and it sounds like so much work. For those that have decided the same, what entity are you all setup as? An LLC? Or do you just have a separate bank account under the gym name and keep all team funds separate?

Please help!

 

[gym_dad32608]

I dont understand, are you asking about setting up a booster club or an alternative to a booster club. Booster organizations are generally set up as a 501(c)3 - charity organization or 501(c)7 - social club, which both have distinct requirements. The (c)3 is the NFP one with tax benefits. The (c)7 is also a NFP but no tax benefits. Setting up as an LLC requires a whole other level or legal and reporting requirements.

Bottom line, STAY AWAY FROM ANY TYPE OF BOOSTER CLUB! IF I was hellbent on creating some type of "club" I would go the (c)7 route which allows you to charge dues.

 

[Seanydad]

Hello!
We are an active Not for Profit, but are not 501(c)3. This doesn't come with tax-exempt benefits like a 501(c)3 does, but gives us some flexibility.
Annually, we provide our gym with a report of all our finances - including all receipts and all payouts. Our "payouts" are based on how much a gymnast participates in the fundraiser, and are applied directly to the gymnasts tuition account through our Gym. We usually do an 80/20 split, so any profits from the fundraiser, 80% will go to the gymnasts account, 20% will come to the booster club which funds our annual awards banquet.
It sounds like a model similar to our gym would be the best option for your smaller gym. My biggest issue is lack of participation from the families.