Parents Booster Club Distribution Opt-Out?

[Liviesmom]

So we are a small gym but have an few extremely wealthy families represented. They don’t participate in booster activities but still receive the benefits, per regulations. We just allocated funds to cover a percentage of our new warmups for next season and the credit was posted to their gym accounts. We had one of our newer parents ask what the credit was for and when informed it was from booster club she asked if she could opt out as they “don’t need the money and would rather it help the kids who need it most”. Is there a way for parents to choose to opt out of these distributions? We already know they aren’t/wont participate in fundraising but she is ASKING to opt out of funds. Is this possible given the IRS rules? Is there a loophole of any kind?

 

[Flicfliclay]

Is your booster a Non-profit?

 

[WV Gym Mom]

Yes, please check with the tax laws to do it the right way, but a family CAN voluntarily opt out of booster distributions.

 

[Liviesmom]

Is your booster a Non-profit?

Yes

 

[Dahlialover]

They can make a donation equivalent to the benefit they receive.

 

[raenndrops]

The gym could redistribute the amount without involving the booster club.

If I understand correctly, if the family donates the equivalent amount back to the booster club, it would have to be redistributed amongst all of the gymnasts again ... so they would need to make another (smaller) donation ... and on and on.

 

[Carly]

The gym could redistribute the amount without involving the booster club.

If I understand correctly, if the family donates the equivalent amount back to the booster club, it would have to be redistributed amongst all of the gymnasts again ... so they would need to make another (smaller) donation ... and on and on.

That is my understanding of how it works from being in a booster club for many years.

 

[HopefulGymnast]

If I understand correctly, if the family donates the equivalent amount back to the booster club, it would have to be redistributed amongst all of the gymnasts again ... so they would need to make another (smaller) donation ... and on and on.

I doubt this solution is very practical, but just in case anybody is interested in how this would work, I've done the math.
If my math is correct, you'll get the following: If you want to donate X euros in the end, you'd have to donate X + X/(number of members - 1)
For example if you want to donate 100 euros and there are 5 boosters (including you) you would donate 100 + 100/4 = 125. Then you'd get 25 euros back when it's redistributed.

Sounds like a convoluted option to arrange it that way in practise though.

 

[raenndrops]

I doubt this solution is very practical, but just in case anybody is interested in how this would work, I've done the math.
If my math is correct, you'll get the following: If you want to donate X euros in the end, you'd have to donate X + X/(number of members - 1)
For example if you want to donate 100 euros and there are 5 boosters (including you) you would donate 100 + 100/4 = 125. Then you'd get 25 euros back when it's redistributed.

Sounds like a convoluted option to arrange it that way in practise though.

Lol, my brain was too fried to do the math ... I had spent 7 hours tutoring algebra, geometry, trigonometry, biology, American government, American history, and 8th-grade English.
Then I had to file state taxes (late) for a family friend. After that, I came to ChalkBucket to unwind.
Thank you for doing the math ... and I agree, very convoluted way to do it.