Parents What do you think of this fundraising?

[Deleted member D3987]

given the link you referenced, it appears there are loopholes for some gyms. However, from reading the document, i would say that most booster clubs would not qualify under 501j, since the vast majority of gyms do not have evidence of training future elites/collegiates. And I am guessing the IRS takes a very narrow view when it comes to this evidence. But for the boosters who would qualify, if a non profit booster buys equipment, it belongs to the booster, not the gym. I suppose it's possible that a qualifying booster could just retain ownership of the equipment, but that opens another set of legal ramifications in terms of liability, maintenance, equity in the company, etc. certainly not a good position to have long term. I don't know if the equipment can be gifted to a For-profit gym, but if it can, the gym would have to count it as income and pay taxes on it.

Edit: after I looked more into the documents, I'm really confused because the article clearly says the booster cannot buy equipment that would provide obvious benefit to the for profit gym (because the equipment would be used to bolster the entire gym's program, not just the team) but then the IRS docs appear to say that there may be times when purchasing equipment would be qualified. Honestly, I think this has more to do with non-profit organizations developing sports programs and the legality of purchasing equipment for that program, not for non-profit boosters paying for equipment for for-profit gyms.

listen, you're incorrect. and i mean no attitude. sincerely. this is a complex issue. i have stated before that attorneys and accountants need to be consulted to execute anything that is in this thread. and the laws vary from state to state on this subject matter and some yet again supersede what the Feds say. so please everyone, stop.

i have posted before that this topic/subject matter should not be discussed at all in this medium. it's too complex.

and again, as i have posted before, a booster club CAN DONATE equipment back to their respective gym clubs. how you do this is not easy for lay people to understand. hence the attorneys and accountants who deal with this stuff, in their state, every day.

 

[SignHere]

Ok. JBS! I want my daughter to go to your gym!

 

[RileyG]

Fwiw for my story our gym does Not have a booster club.
there is no tax exempt status, anyone who donates anything cannot write it off on taxes. We have difficulty getting businesses to donate items because of this.

Anyway, i just wanted to gripe about it somewhere, so i came here. Didnt mean for it to morph into a tax and legal discussion