Ethics Scenario #111: Harristown Youth Soccer Booster Club

111. It’s January, and the Harristown Youth Soccer Booster Club, a 501(c)(3) nonprofit, tax-exempt organization, is having its annual flower seed and cookie sale to offset its expenses for the upcoming fall season. As is the case each year, each participating child is expected to raise $200 to fund uniforms, field rentals, soccer balls and other equipment, and insurance. Participating in the fundraising sale is not mandatory, but each youth, or more accurately, their parents, would otherwise be required to pay the Booster Club $200 in participation fees. By selling the flowers and cookies, this fee may be offset, with every $5 in sales equaling $1 in fee reduction. Most children participate in the fundraising effort. (see: irs.gov/pub/irs-tege/booster_club_field_directive_6-27.pdf)

a. Is the Club’s fundraising policy ethical?

b. Is the fund’s fundraising policy legal?