Question posed to me:
Isn't it true that if you have a youth sports non profit organization, you can not remove a child from a team for non payment of registration fees?
My answer:
No that is not true. Just because a team has an approved Non Profit purpose (teaching/administering youth athletics) does not mean it must offer those activities for free.
Second question posed to me:
I have heard the same thing about registration, but figured it could not be true or ever non-profit would go under. What about other league fees such as Snack Bar fees or fundraisers?
My answer:
It is my belief that you can remove a child from a team after a reasonable period of time for non payment of initial registration and/or team planned activity fees. (That means you must set your fees at an amount to logically cover direct cost of participation for the season).
I also believe that you cannot require any additional fundraising efforts or a payment in lieu of such fundraising in order to stay on the team. You can specify that the participant will forfeit any prizes earned for their fundraising (merchandise, team jackets, parties funded from profits etc.).
While you are not required to offer some participants a break on initial fees, it is humane and helpful to the community to have a heart and offer some common sense discounts to a small number of families who cannot afford the full amount of fees or have multiple children in the same activity. Have an application process to select the ones you can help out each season. Build this cost into your organization budget.
****************DISCLAIMER****************
The author is a CPA but not an attorney and is not qualified to render legal services. Check with an attorney to verify the correct information for your state.
Discussion Topics: Can you remove a child from the team for non payment of fees? Require fundraisers? 