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Chea Romine
Chea Romine, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 197
Experience:  CPA, Managing Partner of medium sized CPA firm specializing in all areas of tax and accounting.
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I am the Treasurer of a Yacht Club in Washington State. About

Resolved Question:

I am the Treasurer of a Yacht Club in Washington State. About a year ago we started a 501(c)3 as a separate entity under it's own management and Board of Trustees. It is a Junior Sail Program. In order to help fund the new entity, the Yacht Club's Board of Trustees voted to match member's donations dollar for dollar up to $10,000.

We are now facing petitions and discord among our members for doing this. They are demanding that we get the money back. We have some members who are willing to reimbuse the funds, but I am
Submitted: 5 years ago.
Category: Tax
Expert:  Chea Romine replied 5 years ago.

Chea Romine : I think your question got cut off, if you want to finish I will try to help.
Customer:

Thank you,

Customer:

Thank you, The final end of the question is that I do not want the Yacht Club to appear to have helped if they actually have not. Therefore, I would like the Junior Sail Program to reimburse the Yacht Club and get the donation off the books and have the members who would like to contribute the funds to pay the Junior Club and have the charitable donation for tax purposes.

Customer:

With the 501(c)3 limitations on payments , would they be in jeopardy by returning the funds? We do not want to loose their exempt status by doing somethig stupid.

Customer:

Sue

Chea Romine : You are able to refund a donation and not jeopardize your status. You would just net the returned donation with the current donations of the year. This actually happens more than you think and is completely ok.
Customer:

How can I print the question and answer so that I can submit it to the Board to get this process going. It is my intention to have the Yacht Club Board send a letter to the Junior Program asking for the return of the donation and having the Junior Sail Board to authorize the payment before actually making the transactions.

Customer:

Sue

Customer:

I have it covered. Thanx

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