Ask Experts Questions for FREE Help !
Ask
    boosterclubmom's Avatar
    boosterclubmom Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jul 10, 2012, 08:09 AM
    Donations for specific use in a 501c3
    We would like to ask our parents to donate money to our booster club for a sporting facility being built by a private individual (corporation) used by our children. This facility is being built so our children have a place to practice. Can a 501c3 collect funds and then give them to a private individual without risking their 501c3 status. This size of the donations could be substantial (more than 100% of what the booster club typically takes in during a given year). The coach is the person building the facility. What can we do to donate to his cause?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Jul 10, 2012, 08:37 AM
    Giving the money to the corporation is a payment for a service rendered (building the facility). That in no way will jeopardize the club's 501c3 status. The donations should also be deductible if the booster club is in fact a valid 501c3 organization.
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
    Expert
    		  
    #3

    Jul 10, 2012, 11:36 AM
    I interpret the OP's question to mean that the booster club is not a 501(c)(3), and they're trying to figure out how to wash donations through a separate 501(c)(3) in order to give donors a tax break. The answer is no - a 501(c) (3) may NOT use its funds to pay a private individual unless it's for services for the benefit of the 501(c)(3) or is a grant made in fulfillment of the 501(c)(3)'s mission. I am assuming here that the new facility is not going to be owned by the 501(c)(3), but rather will be owned by the booster club, right?
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Donations [ 2 Answers ]

In October of 2010 we gave a donation to the Down Syndrome Buddy Walk, where do I get a letter of confimation for tax purposes, thank you

Donations [ 6 Answers ]

How can I get donations for a single Mom in need? Here's her story: Single Mom to three boys age 6 and under. One of the boys has a medical condition that requires Mom to take off work for his treatments. His medical expenses are being paid through medicare/medicaid whichever it is. She is in...

Answer to 501c3 questions?Can a 501c3 loan money to another 501c3 ? [ 1 Answers ]

Donations [ 1 Answers ]

If a church is incorporated, but does not have a 501c3 status can donations be counted off on income tax. Would we be able to give a receipt for their income tax?

View more questions Search