
Just remember that you cannot set up individual accounts within a 501c3. So, if you send out letters to parents and friends to sponsor, all the money would have to go into a general fund and be divided equally amongst all the cheerleaders. The friends and parents could not specifically sponsor their child or friend.
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I'm not sure how our charity organization does it but we are a 501c3 and we do have seperate accounts for each family or at least the $$ are kept track of so each family gets their specific donations. We have 80+ families that bring over kids every summer from the Chernobyl area. It costs about $1500 per child and each family and their sponsors sends in $$ to the charity. It is put towards that families costs. Don't know why you couldn't do the same thing with any 501c3??![]()
. Apparently we are getting different legal advice. If everybody's contributions, including friends go into a general account, all mixed up, and then you take all the money collected and distribute equal grants to all the cheerleaders, then you are ok. The grants have to be equal and as mentioned above, you cannot discriminate between how much each cheerleader fund-raised, or volunteered, or contributed.
The biggest stipulation of a 501c3 is that all funds be distributed equally. Nobody gets more, nobody gets less because somebody may have contributed more or worked more hours, etc.
But if you distribute money, it has to be equal for everybody.
Personally, if I was on your board, I would be asking to have a review by a tax attorney to double check if everything is ok. It protects you because if there is ever any question, you can show the IRS that you did everything to make sure you are following law.
it would be great if there was, but then it would just be divvied up for the next year's visit.I just had my "aha" moment! Now I get it! All of the money IS distributed equally among all host children. When all is said and done there is the exact amount of $$ needed to bring each and every child over plus cover the cost of translaters, etc. There is never any left overit would be great if there was, but then it would just be divvied up for the next year's visit.
And yes, I am on the board, and yes we do have a tax attorney and an audit. I knew we were doing it right but I have no head for this kind of stuff (as if that isn't obvious...) I'm more in charge of the fundraising and getting things done with the translaters.
Thank you goofey for making it clear for me. seriuosly, I thought I was losing my mind there for a moment...

It's great to see so many supportive cheer moms out there! I used to cheer both high school and all star and miss it dearly!
Will any of you be competing at the UCA All Star Nationals in Orlando the second weekend in March? Or at the USASF Worlds in April? Those are two great competitions that I make sure to attend each year. (I live here in Orlando.)
It's great to see so many supportive cheer moms out there! I used to cheer both high school and all star and miss it dearly!
Will any of you be competing at the UCA All Star Nationals in Orlando the second weekend in March? Or at the USASF Worlds in April? Those are two great competitions that I make sure to attend each year. (I live here in Orlando.)