Booster Club Fundraising May Present Private Inurement/Private Benefit Concerns
March 24, 2014
Authored by: Keith Kehrer
In a recent decision, Capital Gymnastics Booster Club v. Commissioner, T. C. Memo 2013-193, the Tax Court held that a gymnastics booster club did not satisfy the requirements of Section 501(c)(3) because its fundraising programs operated in a manner that allowed substantial private inurement and promoted private, non-public interests. The case raises questions for taxexempt organizations that conduct fundraising activities for the benefit of organization leaders and members.