The IRS has some documentation on this kind of thing, even specifically gymnastics booster clubs. They're not always as clear as they could be, but they do give "scenarios" and tell you whether those scenarios are legitimate for 501c3 or not. In general, you want to avoid the booster club only benefiting members, and you want to avoid there being any relationship between how much an individual contributes and how much that individual benefits.This article does not do justice to the ruling. I think it could raise the scrutiny of booster clubs and everyone with a booster club should read the decision. However, the key issue was the private inurement based on the specific fundraising outlined in the facts. The court noted the lack of any scholarships based on need. They also said certain fundraising was directed at individuals - not the whole club (a red flag of private inurement). Plus, they noted the statement that the "primary purpose" of the booster club was fundraising. Folks should read it, compare it to their facts, and seek professional guidance if they feel it is warranted.