July 16 - September 30, 2013

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Lead Stories

Booster Club Loses Exemption Because of Fundraising Program

Booster Club Loses Exemption Because of Fundraising Program

City Loses Right To Appoint Hospital Board

Hospital amended bylaws to eliminate City Council’s right to name directors

Directors Accused of Personal Benefit May Not Be ‘Independent’ to Decide on Suit

Court questions role of accused directors in deciding whether derivative action should proceed
Ready Reference Page No. 2
To the Point

Buying volunteer hours?

Our 501(c)(3) booster club board decided to institute a new volunteer policy this year. All parents automatically become members of the club if their child is in the sport (gymnastics). There are required volunteer hours and failure to meet the hours equals a fine of $25/half hour. Parents can buy out of the volunteer hours by paying $500 up front. Does this policy violate the club's 501(c)(3) status? Does the penalty money received by the club constitute taxable income for the club?