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amateur sports organizations

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What is the name of your state? Texas

When a 501 c(3) is used for a amateur sports organization and fund raising events are used to help raise money for the young children, how is the money earned from the events to be divided? If only certain children participate, lets say 50%, in the fund raising event should they be the only ones to benefit from the fund raiser or does every child whether or not they particiapted in the event benefit from the fund raiser?

I see both sides, the idea to be exempt is to benefit all the children, but on the other side why should they benefit if only certain children/parents particiapate to earn money from the fund raising events.



Senior Member
Because if they tied a child's participation to the parent's fund-raising, they would be charging a fee. Forgiving the fee for parents who do fundraising would be "income" for the parent and the organization would have to issue W-2's or 1099-MISC's to each parent. A bookkeeping nightmare!

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