- 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
Our organization (travel ball) is a 501(c)(7) non-profit corporation. Sponsors can write it off as a charitable contribution.
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 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.
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.