A non-profit 501(c)3 organization has many benefits (i.e., the ability to accept contributions and donations that are tax-deductible to the donor, exemption from federal and/or state corporate income taxes, discounts on US Postal bulk-mail rates and other services.). However realize that these non-profit organizations are charitable organizations. You cannot pick and choose who benefits from the organization, The internal revenue has cracked down on mostly large organizations (small organizations are pretty much safe) imposing large amounts of fines (excise tax) for non-compliance with their rules. The main principle of funding by a U.S. IRS 501(c)(3) nonprofit is that the booster club may not discriminate in making grants to youth or college students on the basis of their family's membership in or funding to the club, or the family's fund-raising or time put into club activities.
Having been a member of two different gyms with non-profit 501(c)3 organizations, providng for the whole team became a very sore subject for many of the few parents that were always helping out. Not every team member paid the membership dues, participated in fundraisers, etc. Yet, you cannot exclude them from benefits and they should receive all the benefits of the hardworking and paying team members. Many of our officers wanted (and actually did) exclude non-participating members whenever they could. It is likely the IRS will never find out but the risk is still there.
Another option is a coop type booster club. Members get what they put in. There is no obligation. If you think there is not going to be a large participation, you may opt for this. But most booster clubs are tax-exempt under Section 501(c)(3) organizations for more successful fundraising since donors get the deduction for their donation.
Below is a link on a step by step process in obtaining a tax-exempt status on your booster club. Good luck.
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