Nonprofit funds must be used in ways that align with the AAU’s tax-exempt purpose and comply with IRS regulations. Proper uses include:

1. Mission-Related Expenses

• Program costs that directly support the AAU’s mission (amateur athletics).
• Grants or scholarships that further the AAU’s purpose.
• Purchasing equipment, facilities, or materials needed for mission-driven activities (amateur athletics).

2. Fundraising & Development

• Hosting fundraising events, campaigns, and donor outreach.
• Advertising and promotional activities to increase awareness of the AAU’s work.

 3. Administrative & Operations Costs

• Salaries and benefits for employees - any salary or benefits paid must be approved by the Board of Directors of a district or by the National Committee and National Office for a sport.  Salaries and benefits must be reasonable for the position. The only members that may vote are members that were elected and not appointed.  Appointed members must recuse themselves from the vote.
• In order for salaries to be paid, a job description must be pre-approved by the Board of Directors of a district or by the National Office for a sport committee.  Appointed members must recuse themselves from the vote.
• Rent, utilities, office supplies, and other reasonable overhead expenses. Each district is limited to renting one location for office space.

• Insurance, legal fees, and accounting services required for compliance.
• Costs related to IRS filings, state compliance, and board meetings.
• Fees for audits and financial reporting requirements.

Prohibited Uses

• Personal benefits: No individual, including board members or staff, can receive excessive compensation or direct financial gain.  Personal expenses may not be paid from non-profit funds.
• Conflict of Interest if a district officer, national sports chair or family member is receiving benefit from the organization, such as, payments for services or rentals, this information is required to be disclosed to the National Office.
• Fuel expenditures for fuel are limited to rental vehicles used to host events.  If a personal vehicle is used for sport and district business, an expense report should be completed for reimbursement of mileage on personal vehicle.  A log should be kept to track business miles driven in personal vehicle.
• Checks written to cash are prohibited.
• Entertainment is limited to business functions only and should be reasonable in cost.
• Meals should be limited to district or Sport Committee related activities. Buying yourself meals or coffee on a regular basis are personal expenses.  Acceptable expenses for meals are taking out board members, volunteers, etc.  Meals should be reasonable and not lavish.
•  Excessive Expenditures:  Expenditures for conventions, meetings, travel, and similar activities should be conducted in a cost-conscious manner, ensuring the resources of the AAU are used in a fiscally responsible manner. 
• Political activities: Direct donations to political candidates or campaigns are not allowed.
• Excessive unrelated business activity: If a nonprofit engages in substantial unrelated business activities, it may risk losing tax-exempt status.