How Should Cheer Gyms Handle Fundraising? Business vs Committee

Fundraising can make cheerleading more accessible for athletes and families—particularly when competition travel or international tours are involved.

But before announcing a raffle or asking parents to organise a sausage sizzle, cheer gym owners need to answer a much bigger question:

Who will legally collect, control and distribute the money?

Will fundraising operate through the cheerleading business, or will an independently governed committee work alongside the program?

When I first opened an all-star cheer gym, this was an area where I didn’t have enough education or support. There were questions I didn’t even know I needed to ask, and I had to learn a lot as I went.

If you’re currently considering fundraising for your cheer program, getting the structure right at the beginning can prevent much larger problems later.

Fundraising Is Not Just Extra Money

It can be tempting to see fundraising as money coming in for a good cause.

The reality can be more complicated.

Depending on your location, organisational structure and the type of activity, fundraising money may create legal, accounting, tax, reporting and record-keeping responsibilities.

Questions to investigate include:

• Who is conducting the fundraising?
• Which bank account will hold the money?
• Who legally owns the funds?
• Is the money being raised for the program, a team or individual athletes?
• Who can approve expenditure?
• How will the money be allocated?
• What happens if an athlete leaves?
• Are permits required for raffles or other activities?
• How will payments to the cheer business be recorded?
• Could the income affect the business’s tax or reporting obligations?

Don’t assume that money described as “fundraising” automatically sits outside the business’s normal financial obligations.

Option One: Fundraising Through the Business

A cheer gym may decide to organise and operate fundraising through the existing business.

This can appear to be the simplest option because the program already has staff, families, communication systems and bank accounts.

However, the owner needs qualified advice about how the funds will be treated.

Depending on the circumstances, money received through the business may form part of its income or create other accounting and tax consequences. The way funds are described does not necessarily determine their legal or tax treatment.

The business would also need clear systems covering:

• Authorisation and control of funds
• Financial records and reconciliation
• Refunds and cancellations
• Allocation between athletes or teams
• Privacy and payment information
• Volunteer involvement
• Insurance and risk management
• Raffle or gaming requirements
• Communication with families

The owner also needs to consider the time involved.

If you already run classes, manage staff, communicate with parents, plan competitions and operate the business, do you realistically have the capacity to manage an entire fundraising program too?

Option Two: Working With a Fundraising Committee

Another possibility is for an independently governed fundraising committee or community association to operate alongside the cheer program.

The exact structure varies by location. Simply calling a group a “committee” does not automatically make it a separate legal entity or not-for-profit organisation.

The group may need to become formally incorporated, adopt a constitution, appoint officeholders, open its own bank account, maintain records and meet ongoing reporting requirements.

Common roles could include:

• Chairperson or president
• Secretary
• Treasurer
• General committee members
• Event or fundraising coordinators

The committee’s purpose might be to help participating athletes and families with approved cheerleading expenses, such as competition travel.

This arrangement can allow the program owner to focus on running the gym while committed volunteers manage approved fundraising activities.

It is still a substantial responsibility for the volunteers involved. A functioning committee needs people who are reliable, transparent and prepared to complete the less exciting administrative work—not only suggest fun fundraising ideas.

The Gym and Committee Work Side by Side

A committee may operate independently, but it will still need a productive relationship with the cheer program.

The gym owner might provide information such as:

• Which team is travelling
• The purpose and dates of the trip
• Estimated competition or tour costs
• Payment deadlines
• Which expenses relate to the program
• How approved funds can be paid towards those expenses

The committee might also need permission to:

• Communicate approved activities to families
• Hold events at the gym
• Store supplies at the venue
• Display sponsorship material
• Connect fundraising events with program activities
• Make payments towards verified athlete expenses

These arrangements should be documented.

The cheer business and committee need to understand where one organisation’s responsibility ends and the other begins.

Keep the Financial Relationship Clear

If a committee raises funds that are later paid to the cheer program, those payments need to be tracked properly.

There should be a clear record of:

• Who made the payment
• Which athlete, team or expense it relates to
• Who authorised it
• The original fundraising source
• The invoice or cost it is paying
• How the cheer business recorded the payment
• Any balance remaining

Personal bank accounts should not be used as a casual holding place for team funds.

Strong financial controls protect everyone involved. They also give families confidence that the money they helped raise is being used for its stated purpose.

Create Policies Before Problems Appear

A committee needs clear policies covering the difficult questions—not only a calendar of fundraisers.

For example:

• Who is eligible to benefit?
• Are activities optional?
• Are profits shared equally or allocated by participation?
• Can money be credited to individual athletes where legally permitted?
• What happens if a family cannot volunteer?
• What happens to unused funds?
• Can money be transferred between siblings?
• What if an athlete changes teams or leaves the program?
• Who can approve spending?
• How will conflicts of interest be handled?
• Who owns donated equipment?
• What happens if the committee closes?

It is much easier to answer these questions before money has been raised.

Grants and Sponsorship May Become Possible

Depending on the structure and eligibility rules, a properly established organisation may be able to explore grants, sponsorships or other community funding opportunities.

However, none of these benefits should be assumed.

Not every committee qualifies as a not-for-profit organisation. Not every grant recognises cheerleading as an eligible sport, and a business cannot automatically claim a tax deduction for every sponsorship payment.

Potential sponsors and the organisation receiving the money should obtain appropriate tax and legal advice.

Program owners should also be careful not to promise tax deductibility unless the arrangement has been properly checked.

Bring in the Right Professional Help

A business mentor can help a new gym owner recognise the questions they need to ask and develop stronger systems.

However, legal, accounting and tax questions should be directed to appropriately qualified professionals, such as:

• An accountant or registered tax professional
• A lawyer familiar with associations and fundraising
• The government regulator responsible for fundraising or incorporated associations
• An insurance adviser
• A governance specialist where appropriate

Ask for advice that applies to your exact location, business structure and proposed fundraising model.

Fundraising laws differ between countries and may also differ between states or territories.

Don’t Accidentally Create Another Full-Time Job

A fundraising committee can offer enormous support, but it still needs involvement from the gym.

The owner may need to provide costs, confirm athlete participation, answer questions, approve access to the venue and reconcile payments.

Set boundaries around that involvement.

The owner’s main job is still running the cheer program, supporting staff, coaching athletes and operating the business. Fundraising should not quietly become another entire department that the owner manages for free after hours.

A capable committee can reduce that burden, but only when roles and expectations are genuinely clear.

Build a Structure That Supports the Athletes

Fundraising can open valuable opportunities for athletes who might otherwise struggle with competition and travel costs.

It can also become confusing, exhausting and risky when it begins without the proper structure.

Before collecting money:

1. Decide exactly what the fundraising is intended to support.
2. Investigate the rules that apply in your location.
3. Obtain qualified legal, tax and accounting advice.
4. Compare operating through the business with an independently governed organisation.
5. Document the responsibilities of the gym and committee.
6. Create policies for collecting, allocating and spending funds.
7. Establish transparent banking and record-keeping systems.
8. Make sure the workload is realistic for everyone involved.

The goal is for the gym and fundraising group to work side by side.

The gym runs the program and teaches the athletes. The committee supports eligible families with the financial side, within its documented purpose and applicable rules.

When that relationship is properly structured, fundraising can become an incredible resource for the cheer community—without placing every responsibility back onto the program owner.

You can find more honest conversations from life on the mat and inside my books at The Cheerleader Book Club.

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Allison xx