I think it's extremely unfair to athletes that pay or bust their butt to fundraise to let anyone else cheer for free. All of my athletes pay their own way. We offer tuition scholarships only to those that can prove financial need (yes we ask for specific items as proof) and they are expected (but not required) to participate in fundraisers and it is frowned upon for them to take private lessons if they are scholarshipped. No one gets a free ride at all. Scholarships are capped at 60%. I as a coach get a 40% discount in tuition. But even I have to pay for unis, shoes, comps, etc. These things aren't free for anyone (unless you're such an awesome program this kind of swag is lavished on you I guess). We make it as easy as possible to participate but we never sacrafice quality.
And kids that don't pay don't have much to lose when they walk away from your gym. Money talks and those that are serious about being in your gym will FIND A WAY TO PAY.