Updated: 8:35 p.m. Monday, June 25, 2012 | Posted: 8:34 p.m. Monday, June 25, 2012

Athletic boosters lose charity status

Boosters could be forced to pay taxes on donations as a result.

By Lawrence Budd

Staff Writer

SPRINGBORO — The Springboro Athletic Boosters Association continued to accept contributions more than a year after the Internal Revenue Service revoked its nonprofit status, officials said.

The group’s nonprofit status — automatically revoked Nov. 15, 2010 — was posted July 13, 2011, by the Internal Revenue Service.

The revocation means that the charity could have to pay taxes on donations and contributors could lose their deductions.

The IRS revoked the booster association’s tax-exempt status after it failed to file federal tax returns for three consecutive years.

Springboro school board President Scott Anderson said he contributed to the booster club at casino night events, unaware the IRS had revoked the booster’s group charity status.

“I would hope we’d be notified. We never were,” Anderson said Monday. “I don’t think anybody thought there was an issue.”

Booster officials could not be reached for comment or to respond to requests for current funding reports.

On Monday, the booster association’s fund balance was $190,424, according to Tracy Jarvis, treasurer for the Springboro school district.

Booster groups and other private organizations contributing to sports and other programs are not regularly audited by school officials.

The problems came to light after the Springboro school board requested the booster club’s financial records as part of a review of pay-to-play fees and athletic department funds.

Anderson said he didn’t claim his contributions.

Contributors could face tax implications for donations claimed since the revocation was posted in July 2011, unless the booster club’s nonprofit status is reinstated.

“Tax-deductible contributions may be made to an organization whose tax-exempt status is subsequently reinstated,” according to the IRS.

The association’s liabilities begin with the revocation in November 2010, according to the IRS.

“Your organization is liable for all income, excise or other taxes and penalties that may have been owed at the time it was automatically revoked.

Your organization will also be responsible for any future tax liabilities that accrue as a result of your organization’s loss of exemption,” according to the IRS.

Earlier this month, authorities began an investigation of booster club finances after the contribution of more than $130,000 by a booster club officer.

Warren County Prosecutor David Fornshell and other local officials declined to comment.

Contact this reporter at (937) 225-2261 or lbudd@DaytonDailyNews.com.


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