I am on the board for a small neighborhood (non-profit) pool. We are seasonal, and looking for ways to cut expenses this year. We have 4 employees (all who are teenagers). I am looking into switching them from employees to contractors. Is there any problem or potential problem for making this move?

Yes, there could be. You should go to IRS.gov and click on the employer's link. You will find the difference between 1099 and employee. In my experience, when an employer wants to pay as 1099, the law dictates they are an employee. In very few cases, can you legally pay as 1099.
Good luck!