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. To search my previous answers you can do a Google search by "site:allexperts.com/q/nonprofit" without the quotes and then add your search terms before hitting enter.
I have been practicing law and especially the law of nonprofit organizations since 1990 when I was admitted to the New York Bar and I have maintained my status with the Bar since that time.
B.S. Columbia University in New York City, 1970
J.D. (Law Degree) Brooklyn Law School, 1990 -- Cum Laude.
|Phyllis||07/09/14||10||10||10||Thank you so much Harvey! You are .....|
|Lisa||06/25/14||10||10||10||This is exactly what I needed.|
|Lisa||06/25/14||10||10||10||Very quick responses and very concise answers .....|
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I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. Therefore, I am assuming you are referring to such an organization
I am assuming that the Parents Association wants or claims 501(c)(3) organization status. If so, what they are trying to require is in violation of 501(c)(3) organization regulations. My summary of IRS
Let me if the organization is a Arizona Nonprofit Corporation. I will assume it is and answer on that basis, but, if it is not, let me know what type of entity it is and I will reply further. Arizona
Members purchase the scrip from the booster organization. If those members sell the scrip to third parties and make a profit that profit is taxable as ordinary business just like for any other sales.
Your original question was about fundraising for a 501(c)(3) organization by a family. If that family purchases script from the 501(c)(3) organization at face value, as in the Private Letter Ruling, then