Aerial dancer hanging from ribbons while doing the splits

The Cost of Raising a Gymnast

by Sandra Pfau Englund on Aug 23, 2016 03:28 pm

Many of us watched in awe as Simone Biles tumbled across the floor during the Olympics. I had to watch parts of her floor routine twice to believe what I was seeing. What many watching don’t know is how much it costs to raise an Olympic gymnast.

Most gymnasts train at for-profit gyms (Biles trains at World Champions Centre, opened by her grandparents in Spring, Texas in 2014) and must pay for tuition, leotards, warm-up suits, grips for bars, wrist guards, competition entry fees, travel costs (transportation, meals, hotels), and competition coaching fees. It all adds up with the annual cost to raise a gymnast estimated at nearly $2,000; it costs a minimum of $20,000 to raise an Olympian. Many gyms form nonprofit parent-led booster clubs to raise money to help reduce the costs. Sounds good, but operating a nonprofit booster club connected to a for-profit gym gets tricky.

The IRS provides federal 501(c)(3) tax-exemption for gymnastic and other sports booster clubs that “foster national or international amateur sports competition”. In fact, the U.S. Olympic Committee itself is a 501(c)(3) organization. Booster clubs associated with for-profit gyms must be careful to use funds raised to benefit the competition team only, and not financially benefit either the gym or the individual gymnasts or risk loss of their valuable tax-exempt status. One booster club that lost its tax status is Capital Gymnastics. Capital Gymnastics used a point system to credit gymnasts and their parents who participated in fundraising events with the funds raised. This is a common practice – to reward those who participate in the fundraising. How else do you get volunteers? What many volunteers and gyms don’t know is that arrangements in which credit is provided only to those who fundraise is not within the allowable activities of 501(c)(3) organizations.

In the 2013 Capital Gymnastics case the judge ruled that while “parents who make a serious financial investment in the development of their children’s athletic abilities should be free to arrange the activity in the manner they choose…the arrangement that Capital Gymnastics developed [reducing individual fees and costs based on point system related to the amount of fundraising conducted by each gymnast and her family]…does not further a tax-exempt purpose [but]…reflects instead the purpose of promoting the financial interests of its fundraising members.” In other words, cooperative fundraising activities are essentially the operation of a small business to help those participating in the business raise money to pay off their personal expenses. This is not an illegal activity but it is a taxable one rather than a nonprofit, tax-exempt purpose.

So for what can parent-led athletic boosters raise money? Booster funds may be used for competition costs, including in the case of gymnastics, competition leotards, travel costs, entry fees, and competition coaching fees. The key is that the funds raised must benefit all members of the competition team, even the gymnasts and their parents that did not participate in the fundraising or who may not be part of the booster club. In addition, funds raised may not benefit the for-profit gym such as by purchasing a new balance beam or other equipment for the gym.

Learning to stick the landing doesn’t come cheap. It takes lots and lots of practice and hard work for an athlete and his/her support team. It was great to see so many Olympians showing gratitude to their moms and dads for all the time it took to haul them to and from practice, and to and from meets; they may also have been thanking them for all the time they spent working concession stands and selling cookie dough in order to raise an Olympian.

Sandra Pfau Englund

Founder of Parent Booster USA

Sandra Pfau Englund was a working mom in 2004 when she volunteered for her son’s elementary school PTO. The nonprofit and tax law attorney quickly became mired in trying to organize the group’s finances, tax-exempt status and fundraising compliance. If it was this complicated and time consuming for someone with her professional knowledge, she wondered how other parents and booster groups managed. From that experience, Parent Booster USA was born.

Sandra is a sought-after subject matter expert and has been quoted by NBC’s TODAY show and in Forbes and The Wall Street Journal, among others. She is published and speaks throughout the country on issues related to nonprofit legal liability, financial controls and audits in a post-Sarbanes-Oxley world, board development and fundraising.

Learn more at


Running an Effective Meeting

Sandra Pfau Englund

Aug 30, 2019

Booster club bylaws often reference Robert’s Rules of Order as the “rules” for managing a meeting. Have you ever read Robert’s Rules? It’s a good way to get a good night’s sleep!

O.k., so, having no rules leads to muddled, oftentimes chaotic meetings. On the other hand, using strict Robert’s Rules of Order can result in confusion or imbalance, dominated by those very few who understand Robert’s Rules. According to Sandra Englund, founder of Parent Booster USA, it’s far better to use a simplified form of parliamentary procedure. Using Sandy’s Simple Parlipro for Nonprofit Organizations, you provide a solid framework for your meeting that encourages everyone to participate and stops any one person from controlling it.

Meetings should not be all about the rules. According to David Gillig, Senior Vice President of Children's Hospital and Health Center in San Diego, a meeting should be 80% inspiration, learning and fun, and 20% business. Busy parents are more likely to attend if they feel as if they will gain something for themselves, and their kids, out of the meeting. We recommend that you start the meeting with something fun or educational — our parent engagement blog talks more about this.

Place reports at the end of the meeting; consider providing digital or written copies of reports that parents can read outside of the meeting. No one wants to sit through standard reports. One exception is financial reports. Always include the treasurer’s report. The treasurer’s report should include a written budget and a report that shows how money was raised and spent. Making bank statements available is a good way to help ensure accountability. You can read more on financial accountability here.

It’s good practice to put start times for each item on the agenda. This helps ensure that the meeting stays on track and flows effectively. It’s particularly important if you are discussing any controversial issues in which it is more likely that someone will filibuster! Having a rule that each person gets an opportunity to speak once, before anyone is given a second opportunity to speak, helps encourage more participation.

Below is a sample agenda to help you get the most out of your booster club meetings. Start your meeting by reviewing the agenda. This is where you can explain the “rules” you’ve set for the meeting, including for example, that you will work to stay on-time to help ensure that the meeting starts and ends accordingly. You can also mention here, or just before the Q&A time with the principal, that each person will be provided the opportunity to speak once before anyone speaks for a second time. The report time is kept brief to allow the bulk of time to be given to the information provided by the principal. Minutes need approved; although a little unusual, we included approving the minutes at the end to allow more time for the more important matters up front.

ABC Booster Club
1. Call to order & Review of Agenda 6:00p
2. Guest speaker – Principal Melissa Everly discusses school remodel plan 6:05-6:25p
3. Q&A 6:25-6:35p
4. Financial report 6:35-6:45p
5. Other reports 6:45-6:55p
6. Approve minutes from prior meeting 6:55p
7. Next Meeting 6:59p
8. Adjourn 7:00p

Planning and structuring your meeting for success if the key to having an effective meeting.


With PBUSA membership, we file all the IRS and state paperwork. We keep your booster club up and running year after year.