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Do funds raised by members need to be dispersed equally among the members?

Your Legal Questions Answered

Do funds raised by members need to be dispersed equally among the members?

We are a 501(c)(3) that supports the education of our kid's competitive dance troupe. When we have fundraisers and opt to disperse funds back to the members, does it have to be dispersed equally among members or can it be ratio'd by how much they participated in the fundraising?

I am not sure what you are doing disbursing charitable funds to members. You may be providing private benefit that will endanger your charitable status. I suggest you consult with a lawyer who understands nonprofit tax law about the specifics of your program to see if it is permissible.

Saturday, June 23, 2007

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youth sports league

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