[boosterclubmom]

We would like to ask our parents to donate money to our booster club for a sporting facility being built by a private individual (corporation) used by our children. This facility is being built so our children have a place to practice. Can a 501c3 collect funds and then give them to a private individual without risking their 501c3 status. This size of the donations could be substantial (more than 100% of what the booster club typically takes in during a given year). The coach is the person building the facility. What can we do to donate to his cause?

[AtlantaTaxExpert]

Giving the money to the corporation is a payment for a service rendered (building the facility). That in no way will jeopardize the club's 501c3 status. The donations should also be deductible if the booster club is in fact a valid 501c3 organization.

[ebaines]

I interpret the OP's question to mean that the booster club is not a 501(c)(3), and they're trying to figure out how to wash donations through a separate 501(c)(3) in order to give donors a tax break. The answer is no - a 501(c) (3) may NOT use its funds to pay a private individual unless it's for services for the benefit of the 501(c)(3) or is a grant made in fulfillment of the 501(c)(3)'s mission. I am assuming here that the new facility is not going to be owned by the 501(c)(3), but rather will be owned by the booster club, right?