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We have our nonprofit paperwork and have been working under bylaws which we sent to the IRS prior to our approval as a nonprofit 501(c)3 group. An accidental discovery of information on line has led to much discussion and disent about whether we are compliant or not.
Our association keeps a point system, our association requires that parents participate in a minimum number of fundraisers per year, our association has a general fund and also keeps an "individual fund" for each member family. The funds in the individual account are part of the general fund but are earmarked for use by that member family for purchase of items like grips, leotards, meet fees, etc. The bigger general fund pot of money is used for paying associaton insurance, coaches fees for specific travel, gymnastics camp fees for member families, etc.
I am hearing a lot from both sides of this - one side says all of the above is 100% not allowed and that we are in grave danger of being fined & loosing our nonprofit status and the other side says that when the bylaws were written these were the rules and that every other gym in our part of the state uses the same rules so we must be ok. (I checked & they all do actually use these same rules.)
Do you have any idea on this?
Our association keeps a point system, our association requires that parents participate in a minimum number of fundraisers per year, our association has a general fund and also keeps an "individual fund" for each member family. The funds in the individual account are part of the general fund but are earmarked for use by that member family for purchase of items like grips, leotards, meet fees, etc. The bigger general fund pot of money is used for paying associaton insurance, coaches fees for specific travel, gymnastics camp fees for member families, etc.
I am hearing a lot from both sides of this - one side says all of the above is 100% not allowed and that we are in grave danger of being fined & loosing our nonprofit status and the other side says that when the bylaws were written these were the rules and that every other gym in our part of the state uses the same rules so we must be ok. (I checked & they all do actually use these same rules.)
Do you have any idea on this?