Tax-exempt organizations must benefit a group as a whole instead of benefiting individual members of a group.  Since Booster Clubs usually assist student groups, all members of the student group sponsored are to be treated equally and receive the same opportunity to benefit from the Booster Club’s assistance.  Therefore, one student cannot receive a greater benefit than another unless the criteria for financial need discussed below is met.

In some instances, individuals may not be able to afford to pay the amount owed to participate in a particular event.  The IRS has indicated that a group or club may establish criteria that could be used to determine if a person is in financial need.  If the criteria are met, the group or club could provide the necessary funds to allow the individual to participate. The criteria should be established in writing prior to a particular situation arising. In addition, the criteria should be used consistently for all people, and the criteria should not change every year.

An example of Financial Aid Guidelines is included in the Exhibits.