|Individual Fundraising Accounts|
Some booster clubs create individual fundraising accounts to give credit
to those who participate in fundraising activities. It is often asked
whether such accounts are legal under IRS charity rules and if so, whether
the individuals may control how the funds in their accounts are used.
1. Individuals understand that the money raised is really the property of the tax-exempt organization; the tax-exempt organization must control the funds and determine what portion, if any, of the amounts raised may be credited to the individuals;
2. All amounts raised are used for the tax-exempt purposes of the organization; the organization, and not the individuals, must determine how the funds are used; and,
3. Individuals may not withdraw funds to use as they wish; individuals
who leave the organization cannot take amounts credited to their name
with them; the funds stay with the organization to be used for the organization's
The National Booster Cub Training Council
a Copy of this?
If you would like us to send you a pdf version of this, complete the form below.