Because it is illegal for a nonprofit to provide "credits" (income) to individuals. The threat to audit the parents irs statements was fallout from the program acting illegally. If they followed the rules all fundraising efforts would benefit a program, generally...not specific individuals.

So who is to say that the organizations continue to do the same things and just start keeping more creative bookkeeping.

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.

 

 

This is so true...

Ironic part of this discussion is the HL story today on Jim Bunning. It seems in his not-for-profit charitable organization, he pays himself $150,000 a year for one hour per week worth of work which is more than his charitable foundation donates to charity.

 

But I cannot get the $200 that my daughter raised in a fundraiser to offset her cost of playing golf.

 

My this country is screwed up.

Absolutely. Our Band Boosters have been on notice for a while from our CPA/Treasurer that this is dangerous stuff.

 

It's one thing to work IMO for the fees that allow your child to participate (In our band it is $600 per kid for marching band) but some were bankrolling huge sums in bingo work and then buying their child a keyboard, or paying for their (adults) hotel at the National competition. Some even used it after their children graduated.

 

Still another area bingo for another band/booster group was allowing any parent to take out Yearbooks, Senior fees, class trips or whatever from their "personal accounts" and pay for those things. Even shirts and sweatshirts.

 

The IRS sees that as income to purchase items rather than facilitate the non-profit entity. We are also making changes in the way we will operate with our chief fundraiser in the future, Bingo. This story just sealed it for our booster leadership.

 

I am a bit confused by the Bingo stuff. I ran our Parish Bingo for years and it was during the time when the Commonwealth got involved in Charitable gaming. One of the biggest points they made to me back then, was it had to be a totally volunteer, meaning no one was getting anything special out of working the Bingo for themselves! It was pushed so hard, that in the beginning workers weren't even allowed to get a free coke or hot dog while working. So unless the rules have changed why hasn't the Kentucky Gaming commission gotten involved if some of the monies involved Bingo?

I am a bit confused by the Bingo stuff. I ran our Parish Bingo for years and it was during the time when the Commonwealth got involved in Charitable gaming. One of the biggest point they made to me back then, was it had to be a totally volunteer, meaning no one was getting anything special out of working the Bingo for themselves! It was pushed so hard, that in the beginning workers weren't even allowed to get a free coke or hot dog while working. So unless the rules have changed why hasn't the Kentucky Gaming commission gotten involved if some of the monies involved Bingo?

 

 

I believe Hatz is in WV.

The IRS has fined some Fayette County High School Booster Programs.

From the article....

At issue is the longstanding practice of Fayette County booster clubs giving parents monetary credit for fund-raising, including working at bingo parlors and concession stands, car washes and candy sales. Often that credit is subtracted from the annual fees parents pay for extracurricular activities such as band and sports.

We just found out about this prior to running a basketball tournament for the 8th grade Wash DC trip. In year's past if you work a fundraisor you got credit and a portion of the profits goes toward your trip fee. Next year that goes bye bye and they are apparently going to split all fundraising dollars evenly. This is going to cause many to not volunteer and work which is ashame. The mindset will be why should I work 20 hours at a tournament when other parents arent doing anything and getting the same amount paid toward their trip.

 

For the kids would be a simple answer, wouldn't it?

For the kids would be a simple answer, wouldn't it?

 

Sure, but we're all human and it can get very frustrating constantly busting your hump for not only your own child, but for other kids whose parents purposefully choose to sit back and let others do the work for them.

Sure, but we're all human and it can get very frustrating constantly busting your hump for not only your own child, but for other kids whose parents purposefully choose to sit back and let others do the work for them.

 

I think that would be called the Obama tax plan.:sssh::cool:

I am a bit confused by the Bingo stuff. I ran our Parish Bingo for years and it was during the time when the Commonwealth got involved in Charitable gaming. One of the biggest points they made to me back then, was it had to be a totally volunteer, meaning no one was getting anything special out of working the Bingo for themselves! It was pushed so hard, that in the beginning workers weren't even allowed to get a free coke or hot dog while working. So unless the rules have changed why hasn't the Kentucky Gaming commission gotten involved if some of the monies involved Bingo?

 

People "worked" Bingo and were given a credit by the Bingo organization. For example if you were the "caller" you received $100 credit. Work the floor, it was a $50 credit. Etc.

 

These credits came to the Band boosters in the form of a check and a statement saying: "Mrs. X worked twice as a caller and earned $200 toward's their band fees." The Booster accountant credited that to the child's account.

 

The reason/rationale for this kind of book keeping is that people won't volunteer to just send money to the "general fund" of boosters. They would volunteer to help defray the $600 Band fee for his/her child so it would be less (or none) that they had to pay towards that fee.

 

The issue here I don't think is a gaming one but an IRS one about monies being income.

 

 

FYI: Our Booster treasurer will be making a recommendation next month to dispense with all personal accounts credits from Bingo. He will resign if something isn't done because he is a CPA for our County government and stands to lose more than fines if we don't act on this. It's going to be very tough for families in our area to come up with $600 per child for marching band. Stay tuned.

I believe Hatz is in WV.

 

Bite your tongue Rockmom. :madman::fight:

 

 

It is VIRGINIA! The first Colony! :thumb:

 

"The Best thing to happen to Virginia in the Civil War was West Virginia seceeding from the state." :lol:

 

 

(Though I am a native Danville, Kentuckian. Go Rebels! :thumb:)

Bite your tongue Rockmom. :madman::fight:

 

 

It is VIRGINIA! The first Colony! :thumb:

 

"The Best thing to happen to Virginia in the Civil War was West Virginia seceeding from the state." :lol:

 

 

(Though I am a native Danville, Kentuckian. Go Rebels! :thumb:)

 

 

Mea Culpa! I do sincerely apologize. :eek: I was trying not to judge! :lol:

 

FYI: Our Booster treasurer will be making a recommendation next month to dispense with all personal accounts credits from Bingo. He will resign if something isn't done because he is a CPA for our County government and stands to lose more than fines if we don't act on this. It's going to be very tough for families in our area to come up with $600 per child for marching band. Stay tuned.

 

They always come after the bookeeper!

Mea Culpa! I do sincerely apologize. :eek: I was trying not to judge! :lol:

 

All in good fun rockmom, all in good fun. :lol: