Question about Booster Clubs

[gym monkeys mom]

I have a general question about reminbursements from Booaster club accounts when gymnasts leave the club.

If you are a 501C3 which most are. I have been told you may not give fundraised money back but may give back money put in by cash or check. if this is a true statement how does your Booster Club do this??

1.First money in first money out meaning your $$ you put in may get used before your fundraised $$

OR

2. Total Cash in Total Cash out minus expenses meaning use total fundraised money first no matter when it was put in account.

Thanks for the help.

Our booster club does not have a specific policy only that fundraised money can not be refunded. We are looking to set policy and want to make sure it is correct.

Thanks