For Parents Dissolving a Booster

Mgjf22

New Member
Proud Parent
Jul 23, 2020
1
34
Country
USA
Our gym owners have decided to disband our booster. The entire booster board is in agreement even though we were technically never asked we were told that is what was going to happen. The question is what should happen to the money in the general booster account (Not a 501c3)?
The gym accountant said it will just be move to a general gym account for the competitive teams...is that legal? To move it from a non profit To a for profit?

I’m assuming it’s not and if not what should be done with it?
 
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LemonLime

Active Member
Proud Parent
Jul 16, 2007
766
The bylaws of your organization will dictate where the funds go, and the governance around its distribution. Follow the bylaws so the individual board members do not become personally liable for the distributions.

Non-profits can give donations to a for-profit, but if they are not a 501(c)(3), this is taxable income.
 

cmg

Member
Proud Parent
Jul 2, 2018
52
60
Country
USA
I would think at the very least that the money should be used to fund team activities, since that was the reason for the booster. It sounds like that is what your accountant is saying, but it is the gym accountant. I would make sure that it does not just get put into the gym's general fund to be used for anything. I am very involved with the booster at my gym and luckily we have a parent on the booster board who is a certified accountant so I always ask her for things like this. Any extra funds we have go to train team coaches, buy specific team equipment, and fund our girls team social events. Just get receipts and such to confirm how the money benefited the team. If the gym makes a fuss about proving how the money was spent, having receipts and proof of purchases is just standard accounting practice. You would just be follow standard practices.
 
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