Do I need a tax id number

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Oct 13, 2016
1
0
I just started my own team and its the first time that I will be coaching when I'm not under another organization. I'm planning on getting sponsors so I need to know what I need to do about a tax id
 
May 24, 2013
12,461
113
So Cal
Our organization (travel ball) is a 501(c)(7) non-profit corporation. Sponsors can write it off as a charitable contribution.


Also...Welcome to DFP. Enjoy the ride. :)
 
Last edited:
Mar 20, 2015
115
0
NW Az
Getting a 501c is not always easy or the best route to go. As far as sponsors go, the way I approach them is as an advertising expense vs a non-profit write-off. And remember: It's always easier to ask 10 people for $300 vs asking one for $3000. Good luck!!
 

Josh Greer

DFP Vendor
Jul 31, 2013
934
93
Central Missouri
Another thing to consider is that you should be segregating you financials from your personal account. In Missouri,and I would assume other places, require that your entity is registered as a DBA (doing business as). It is easiest to register for a state ID while you do the DBA forms. Also, if you will be selling concessions, it will allow you to be exempt from sales tax (though there some caveats there...no need to make them public here though).
 
Dec 5, 2012
4,143
63
Mid West
Tax ID or Employee ID# is given by your bank. This will make it possible to have an account with the team name on it. Sponsors don't need that number, but writing a check to a team name is way more professional than the coaches name.
 
Last edited:
Oct 22, 2009
1,532
0
PA
Our organization (travel ball) is a 501(c)(7) non-profit corporation. Sponsors can write it off as a charitable contribution.

I would check this. I am not an accountant or a tax attorney, but my reading of the 501(c)(7) code is that the club itself is tax-exempt, but sponsors cannot write off donations the same way they can for a 501(c)(3). We encourage our sponsors to write their donations off as advertising expenses, and we put their logos and business information on our banners and website.
 
Jun 4, 2014
159
28
Our organization (travel ball) is a 501(c)(7) non-profit corporation. Sponsors can write it off as a charitable contribution.


Also...Welcome to DFP. Enjoy the ride. :)

Not legally, they can't. Corporate sponsors can deduct advertising expenses, but there is no such thing as a charitable contribution to a 501(c)(7). A 501(c)(7) is not a charity.
 

JAD

Feb 20, 2012
8,231
38
Georgia
Not an expert on the subject, but I would think all you really need is a checking account to keep the team finances separate from your own. I would suggest checking with a local bank to confirm their requirements. You would need a tax ID if you plan to apply for tax exemptions.
 
Dec 5, 2012
4,143
63
Mid West
Not an expert on the subject, but I would think all you really need is a checking account to keep the team finances separate from your own. I would suggest checking with a local bank to confirm their requirements. You would need a tax ID if you plan to apply for tax exemptions.

Correct....

And to add on to others. Sponsors can write off advertising expenses without needing a 501(3c) status. However, the amounts are typically limited without it. Usually caps out around $300-$500
 
May 24, 2013
12,461
113
So Cal
I would check this. I am not an accountant or a tax attorney, but my reading of the 501(c)(7) code is that the club itself is tax-exempt, but sponsors cannot write off donations the same way they can for a 501(c)(3). We encourage our sponsors to write their donations off as advertising expenses, and we put their logos and business information on our banners and website.

Not legally, they can't. Corporate sponsors can deduct advertising expenses, but there is no such thing as a charitable contribution to a 501(c)(7). A 501(c)(7) is not a charity.

I probably have the terminology wrong. Thankfully, I'm just a coach, not part of the organization management. Thanks for clarifying things.
 

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