QUESTION
Can fundraised monies for a youth sports player be refunded? How?
Asked on Apr 02nd, 2014 on Taxation - Michigan
More details to this question:
Our child was asked to leave a team and had $800 worth of fundraised money in her player account. Because the team is a 501c3 they said they are unable to refund the money. However, last year they refunded excess fees at the end of the season. Is this true? Could the money be transferred to her new team if they are a 501c3?
2 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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501(c)(3) organizations are not allowed to give any of their fund raised money to one of their members - that would violate their charter and they could lose their tax exemption. They aren't even allowed to direct their benefits towards the kids who raised the funds - no 501(c)(3) can say "Only the kids who work on the fundraiser get to go on the Chicago trip." (Try telling that to the charity that supports a high school band). So, a kid that is responsible for $800 of fund raising can't be treated any differently than a kid who raised zip. They can't give her the money and they can't direct the money to follow the kid around to other groups. Refunding the extra money to the kids at the end of the season also violated their charter.
Answered on Apr 04th, 2014 at 6:00 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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I certainly do not completely understand your question, but if the team is a 501(c)(3) and your child and yourself worked to fund raise for it monies which were raised are certainly not generally refundable, they are the teams.
Answered on Apr 03rd, 2014 at 12:32 PM