Okay here is a question that I proposed to my AD today.

 

My daughter has a cost for playing golf and going to camp of $400.

 

If SHE, at 14 years of age, works and raises funds to offset that $400, why can't she file a tax return claiming the income of $400. Key here is that I am not putting in the time as concession stands and fundraisers but she is.

 

Obviously, she is not going to have to pay taxes on it because she is not going to earn enough.

 

But if she does not claim it, that $400 has to go to the team and she ends up keeping about $100 of it instead of the $400 that she raised.

 

Even if she has to pay taxes, she would still be ahead because Obama hasn't raised the income tax rate to 75%,............................yet.:sssh::lol:

Okay here is a question that I proposed to my AD today.

 

My daughter has a cost for playing golf and going to camp of $400.

 

If SHE, at 14 years of age, works and raises funds to offset that $400, why can't she file a tax return claiming the income of $400. Key here is that I am not putting in the time as concession stands and fundraisers but she is.

 

Obviously, she is not going to have to pay taxes on it because she is not going to earn enough.

 

But if she does not claim it, that $400 has to go to the team and she ends up keeping about $100 of it instead of the $400 that she raised.

 

Even if she has to pay taxes, she would still be ahead because Obama hasn't raised the income tax rate to 75%,............................yet.:sssh::lol:

 

The easiest answer is that most booster programs, 501c3, do not pay employment taxes, and workers are volunteers, not employees. It would be easier if she just got a job at the local fast food joint, earned her $400 and paid the full amount for going. Although, some large boosters do file on their employees, this gets pretty complicated.

I understand and agree with your position. But will the board of ed agree with us.

 

Cause I guarantee that there will be parents calling up the board to complain that their kid is not playing or was cut because of their refusal to participate in the fundraising.

 

For coaches, we are firmly between a rock and a hard place on this one.

 

I have spent hundreds of hours in discussion with coaches and AD's on how to handle this new situation and we aren't finding a good option at all.

 

The other potential "major" problem is what is going to happen in the stands when one set of parents are doing nothing and their kid is getting more playing time than the set of parents in the stands doing all of the work in fundraising and their child is setting the bench.

 

You know as well as I do that fights among parents make their way to the children on your team.

 

High school coaches will always deal with this type of complaining. "Billy is playing more than my Johnny even though Johnny is way better." "Coach doesn't like Johnny as much as Billy, so Johnny isn't playing as much." Billy had an older brother that played for coach, so he favors Billy over Johnny." And on and on. Now you can add another possible gripe (fundraising issues) to the list. Just part of the (your) job unfortunately. Doesn't make it right, it's just a sad reality.

High school coaches will always deal with this type of complaining. "Billy is playing more than my Johnny even though Johnny is way better." "Coach doesn't like Johnny as much as Billy, so Johnny isn't playing as much." Billy had an older brother that played for coach, so he favors Billy over Johnny." And on and on. Now you can add another possible gripe (fundraising issues) to the list. Just part of the (your) job unfortunately. Doesn't make it right, it's just a sad reality.

 

Our school boosters wanted to add a $50 fine if you did not participate in fundraisers.

 

My question to them was how are you going to enforce that?

Who is going to be the one to MAKE them pay that fine?

If they are not going to volunteer their time, why would the pay a $50 fine?

I proposed that any way you try and force them to do it, was going to create a battle among the parents and in the long run create more of a team chemistry problem for the coach.

 

The whole situation is a mess with no easier answer.

My understanding is that it could go to a specific account but then the parents have to claim it on their taxes.

 

This started from the IRS investigating band boosters accounts in Lexington. The band boosters were told to pay a fine of $35,000 or all of the band boosters parents income tax records would be audited to see that they had claimed the income earned through their child's fundraising activities.

 

The parents chose the fine, no longer have individual accounts and moved on.

 

I believe that is the other option, if I understand the law correctly. BTW, this is not anything new. The IRS has had the law for several years. It's just very infrequently (and illogically) enforced.

The easiest answer is that most booster programs, 501c3, do not pay employment taxes, and workers are volunteers, not employees. It would be easier if she just got a job at the local fast food joint, earned her $400 and paid the full amount for going. Although, some large boosters do file on their employees, this gets pretty complicated.

 

One, two young to work at the local fast food joint.

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Two, the original article in the early fall with the Lafayette band boosters indicated that their working bingo, the proceeds being dedicated to the hours that the people worked and not claiming it as income was the problem.

 

The way to handle this is the parents get organized and blast the legislators about it and get fundraising done for school purposes exempted from IRS taxing.

I believe that is the other option, if I understand the law correctly. BTW, this is not anything new. The IRS has had the law for several years. It's just very infrequently (and illogically) enforced.

 

But if my daughter did all the work, why can't it being hers to be taxes.

 

Also, I still claim that it is better for me TO CLAIM it on my taxes.

 

She raises $400 and that is going to be distributed among 8 golfers and she gets $50.

 

I pay taxes on it at let's say 20% and she keeps $320.

 

I am $270 to the good in claiming it. Why would I not choose that option?

Our school boosters wanted to add a $50 fine if you did not participate in fundraisers.

 

My question to them was how are you going to enforce that?

Who is going to be the one to MAKE them pay that fine?

If they are not going to volunteer their time, why would the pay a $50 fine?

I proposed that any way you try and force them to do it, was going to create a battle among the parents and in the long run create more of a team chemistry problem for the coach.

 

The whole situation is a mess with no easier answer.

 

Maybe I'm too much of a tough guy. I look at it like this: You lay out all the criteria to be on the team to the players at the time they officially make the team - rules on practices, grades, behavior, games, etc... Amongst all the responsibilities/rules for each player is the REQUIREMENT (not OPTION) to participate in fundraising events. If the parents/player don't abide by it, then the kid doesn't need to be on the team. If the parents don't like the rule, too bad. We all live by some rules and laws we don't particularly like. Just part of life.

But if my daughter did all the work, why can't it being hers to be taxes.

 

Also, I still claim that it is better for me TO CLAIM it on my taxes.

 

She raises $400 and that is going to be distributed among 8 golfers and she gets $50.

 

I pay taxes on it at let's say 20% and she keeps $320.

 

I am $270 to the good in claiming it. Why would I not choose that option?

 

Assuming, of course, that not everyone works equally. If you have a super set of parents and everyone, or even most everyone, pitches in and does their share to raise money, then you'd be better off having it go to the "general" account since she'd get credit for almost the full amount, right?

Assuming, of course, that not everyone works equally. If you have a super set of parents and everyone, or even most everyone, pitches in and does their share to raise money, then you'd be better off having it go to the "general" account since she'd get credit for almost the full amount, right?

 

Not everyone pitches in. I have two players that do fundraisers. Everyone else would rather just pay for it and not participate in the fundraising.

 

But that is not an option anymore, as I understand it.

 

And she gets NOWHERE NEAR full amount.

 

Last year for camp, we raised about $600 for a team. Her and another player accounted for over $400 of that. This year, it would be split 8 ways.

One, two young to work at the local fast food joint.

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Two, the original article in the early fall with the Lafayette band boosters indicated that their working bingo, the proceeds being dedicated to the hours that the people worked and not claiming it as income was the problem.

 

The way to handle this is the parents get organized and blast the legislators about it and get fundraising done for school purposes exempted from IRS taxing.

 

The actual violation was giving parents monetary credit for their fundraising efforts/volunteer work. The Baseball booster group there may also lose their 501c3 standing for the same type of violation. It is not just bingo, it could be credit for working a concession stand or a carwash. NONprofits must comply with their stated (and submitted to the state) goals. Which are usually to support an athletic program, or band, cheerleading, etc... They cannot use the volunteer work to backhandedly provide a quasi income to individual members.

 

Booster clubs' fundraising efforts are not taxed, as long as they comply with all of the IRS regulations and submit their annual report.

Maybe I'm too much of a tough guy. I look at it like this: You lay out all the criteria to be on the team to the players at the time they officially make the team - rules on practices, grades, behavior, games, etc... Amongst all the responsibilities/rules for each player is the REQUIREMENT (not OPTION) to participate in fundraising events. If the parents/player don't abide by it, then the kid doesn't need to be on the team. If the parents don't like the rule, too bad. We all live by some rules and laws we don't particularly like. Just part of life.

 

Players on free and reduced lunch cannot be required to pay a cost to participate without that cost being picked up by the school according to the way it is explained to me.

 

And we both know that is NOT going to fly with the local board of education when the parent calls them and the coach has to show up at the next board meeting.

 

The rules and laws do not come into play in a school system on all equally.

The actual violation was giving parents monetary credit for their fundraising efforts/volunteer work. The Baseball booster group there may also lose their 501c3 standing for the same type of violation. It is not just bingo, it could be credit for working a concession stand or a carwash. NONprofits must comply with their stated (and submitted to the state) goals. Which are usually to support an athletic program, or band, cheerleading, etc... They cannot use the volunteer work to backhandedly provide a quasi income to individual members.

 

Booster clubs' fundraising efforts are not taxed, as long as they comply with all of the IRS regulations and submit their annual report.

 

Okay back to my question then that no one seems to want or can answer.

 

Why can't they give that fundraising efffort/credit to my daughter as long as I am not the one working it and then let her pay taxes on it?

 

My understanding from the threat of the IRS auditing the parents income taxes to see if they claimed the income was that they parents have the choice of claiming the income.

 

I would still be ahead of the game if I did that last option.

Okay back to my question then that no one seems to want or can answer.

 

Why can't they give that fundraising efffort/credit to my daughter as long as I am not the one working it and then let her pay taxes on it?

 

My understanding from the threat of the IRS auditing the parents income taxes to see if they claimed the income was that they parents have the choice of claiming the income.

 

I would still be ahead of the game if I did that last option.

 

It would only be a guess on my part and you don't need that. Call the IRS toll free at 1-800-829-1040.

It would only be a guess on my part and you don't need that. Call the IRS toll free at 1-800-829-1040.

 

I bet if I call that number 5 times, I would get 5 different answers.:lol: