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Nonprofit Issues

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July 16 - September 30, 2013

July 16, 2013 to September 30, 2013
Lead Stories
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?

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