T.S.
because the state gives our schools so little money ALL of our sports, band, cheer etc are their own nonprofits. that way parents and business can donate $$ and get credit for charitable contribution credit on taxes. I am involved in many and none have ever been audited, however, we do pay a CPA to file taxes, manage bank account etc so there is no question of where $ went. I do know a team got in trouble one year becuase they made a profit, which is against the rules for nonprofit status. So if you have $$ left over at end of year you have to do something with it, like throw team party, give gift to coach but cannot refund to those that donated.