Can homeschool teachers be allowed to keep extra money as a donation?

A homeschool co-op lets their teachers keep unspent class fees. Is this legal?

A homeschool co-op lets their teachers keep unspent class fees. Is this legal?

Ways to thank your volunteers that are tax-free.
The IRS determined that a teacher in a homeschool program should be reclassified as an employee.
A homeschool group faced an unpleasant audit by the IRS for misclassifying their co-op teachers as independent contractors.
A banker asks a homeschool leader for her "IRS letter" before opening a checking account.
Payroll forms for a homeschool co-op
A new homeschool leader asks about filing and paying taxes for her group.

Carol Topp, the HomeschoolCPA, answers questions from homeschool co-ops leaders on tax exempt status and insurance for homeschool co-ops in this presentation, "Homeschool Co-ops Are Like Marriage: Know What You're Getting Into" at the Midwest Homeschool Convention. Part 7 of 7.
For years I told small homeschool groups: “If you never incorporated as a nonprofit corporation in your state, then by default, your organization is an unincorporated association.” And I also told them that, “Unincorporated associations CAN apply for 501 tax…

If your organization has not filed any of the 990/990EZ/990N forms for three years, it is likely your tax exempt status was revoked.