Any 501C experts???

[Knobby14]

Hi,

Our high school boosters are 501C exempt and we are short school bus drivers for our away games. Can raised booster money goes towards the girls gas money to the games? Can money be used for out of town hotel rooms?

Thank you.

 

[wheresmycar]

Not an expert by any means....

Yes, I think the boosters can pay for hotel rooms for players for away games.

As for gas reimbursement, the drivers would probably have to keep mileage logs. I think the IRS mileage reimbursement rate for charities is 14 cents per mile. Logs would need Date, destination, purpose of trip, odometer readings start/stop and number of miles.

 

[JLI2010]

I don't see why not. I would just book that as travel expenses.

 

[rjgarcia76]

Hi,

Our high school boosters are 501C exempt and we are short school bus drivers for our away games. Can raised booster money goes towards the girls gas money to the games? Can money be used for out of town hotel rooms?

Thank you.

No expert here, but that's a bit of a grey area as far as using the 501c(3) funds to reimburse the girls for gas money...Generally the IRS allows a nonprofit to reimburse volunteers mileage at the 14-cent allowance. The volunteer receiving a mileage reimbursement must be considered bona fide, meaning that the volunteer work provides more value than a volunteer receives from the work. Volunteers should have no profit motive for charitably providing their time and other resources. If you were to be audited, it might be difficult to justify the girls as volunteers.

The rules regarding how a 501c(3) is operated can be incredibly challenging to follow to the letter of the law and most organizations are probably operating at least partially out of compliance.

That being said, the odds of an audit are astronomically low...especially if your 501c(3)'s annual gross receipts are $50,000 or less and you can file your annual report via the e-postcard instead of the itemized report. Like so many things in the law, "it's not a problem until it becomes a problem." I'd advise reaching out to an experienced attorney in this regard if you are concerned.

 

[Lemond]

Local HS near us Boosters group bought the school very nice vans for team transport. I can’t imagine that would fall into a different category. But, I have only stayed in Holiday Inns, not an expert.

 

[murphdog]

This is more the boosters rules than 501c rules.
Should the mileage be itemized and paid at the iRS rate for all drivers, yes.
Could the boosters articles of incorporation state this can or cannot happen, also yes.

The 501c3 board I am on has some crazy rules & regulations that we put in to writing in the beginning that 5 years later we are in the process of changing because they are too limiting so I’d check there also

 

[cvsoftball]

which one ?
501(c) is a section of the Internal Revenue Code that describes different types of nonprofit organizations that are exempt from paying federal income tax. Here are the most common types of 501(c) corporations:

1. 501(c)(3) Charitable Organizations: These organizations are dedicated to religious, charitable, scientific, literary, and educational purposes. They must be organized and operated exclusively for these purposes, and none of their earnings may benefit any private shareholder or individual.
2. 501(c)(4) Social Welfare Organizations: These organizations are designed to promote social welfare and are typically involved in advocacy and lobbying efforts. They can engage in some political activity, but it must not be their primary activity.
3. 501(c)(6) Business Leagues and Trade Associations: These organizations are dedicated to promoting the interests of a particular industry or profession. They can engage in lobbying and political activity, as long as it is related to their primary purpose.
4. 501(c)(7) Social and Recreational Clubs: These organizations are organized for pleasure, recreation, and social activities. They must be organized for the benefit of their members and operated exclusively for their social and recreational purposes.
5. 501(c)(8) Fraternal Benefit Societies and Associations: These organizations are dedicated to providing benefits to their members, such as insurance or pensions. They must be operated for the benefit of their members and not for profit.
6. 501(c)(10) Domestic Fraternal Societies and Associations: These organizations are similar to 501(c)(8) organizations, but they are focused on promoting the welfare of their members and the community.
7. 501(c)(19) Veterans' Organizations: These organizations are dedicated to helping veterans and their families. They must be organized for the benefit of veterans and operated exclusively for their purposes.

 

[The Man In Blue]

I would also caution you that there may be more than tax rules at play ... you will want to check with your state governing body to see about the legality (state body's rules, not laws) of paying/reimbursing players.