Our organization is a 501c3 non-profit that has a fundraising golf tournament each year. Is distribution of profits limited?

Ours is a booster club for a local dance team. Each Family is required to commit to $800 in annual expenses to fund trips to compititions, props, etc. The golf tournament profits go to midigate this committment. The issue here is profits are aggreed on by membership to only be distributed to those families that participate and raise funds so that all profits do not go into the general fund. That being said, we have been advised that there is a "limit" as to how much profit distribution can be allocated to participating family members toward their annual commitement. The limit has been capped at $400 and yet this year a number of families exceeded that limit of $400 and think they should be allowed more? Is there a law on this or can the membership approve an increase in distribution?