|I am an attorney and I volunteer time to answer general questions about U.S. Federal income tax issues of nonprofit 501(c)(3) public charities only. Those questions could be about establishing and maintaining legal requirements for such non-profit organizations in the United States, including Internal Revenue service filings and requirements. I will not be working on this free forum to answer questions about Nonprofit's possible unrelated or for-profit businesses or how to fill out forms. This forum is only for general questions about federal tax law, not as the law applies to your specific situation. If you make your question public then I tend to spend more time on answers to benefit the public. If you have other questions, please contact me at Harvey108@hotmail.com I will reply from my email. In any case, do not reveal confidential information to me until after I have contracted with you to provide personal legal services. My responses on this forum are intended to be general statements of law, should not be relied upon as legal advice, and do not create an attorney/client relationship. For me to consider your individual situation and how the law applies, I would need to gather extensive information .....|
I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. I am assuming that the land owner is such an organization. If such
A booster organization may give grants to assist youth in different athletic leagues unless it has, by contract, agreed only to fund school related activities. My summary of IRS regulations relating to
It appears that the 501(c)(3) organization would be borrowing money from a donor who would be paid back, under some contingencies, without interest. That part is fine. However, as to the venture itself
As to recordkeeping, see pdf page 17-19 of the IRS Publication 4221-pc "Compliance Guide for 501(c)(3) Public Charities" which is available at http://www.irs.gov/pub/irs-pdf/p4221pc.pdf for on pdf page
There is no good reason why the booster organization should allow the for-profit gym to make any profit on the sale of those items especially because they are getting free publicity (with their logo).