New travel team /501c(3) status or not

coach james said:

EIN number is in leu of a social security number. The teams name will be on the card and checks.
This will allow sponsors to write checks to the team and not the coach. A 501c3 is only nesc if you're getting sponsorship for over $2000. The second bonus is tax free on purchases. Sponsors can still write off sponsorships on their tax's by labeling it as advertising expenses. The team will not pay any tax's to the IRS (or need to file)...

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DRDRODD said:

One of the things that my DD’s former team benefited from for being an 501c(3). Is that for instance the company that I am employed by would donate up to 5K/year as a charitable contribution if I worked X amount of hours per quarter. So it maybe worth checking with some parents on the team if their employers offer this. I know a lot of companies do offer programs like that but some do not consider sports qualify able.


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MorrisonFury said:

I spoke with my lawyer and he advised me that it wouldnt be necessary to file for a 501 at this time because of the amount of donations/gifts/fundraiser money I would be dealing with. He said that most business would most likely gift the money or write it off as advertising if I had their name in a banner or any other piece.

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gdc03120 said:

This is EXACTLY the same situation I ran into 4 years ago when I took the HC spot for a 16U "sub"-rec ball team in my hometown. Just wanted businesses to "donate"/"sponsor" us but we were ONLY a summer (May-July) team, weren't looking to get any bigger - just fundraise enough money to cover us for the season. My tax adviser told me NOT to register as a 501(c)3 because we likely weren't going to get major $$ from businesses. So in our letters to businesses, we clearly state, "Funds to our team can be tax-deductible as advertising opportunities/expenses for your business", and part of the funds donated to us are used for advertising through business banners, plaques, etc. The most we've ever raised from a SINGLE business was $400, and the most from collective businesses in total was $1720. Not exactly setting the world on fire, but it's what we were seeking/anticipating.

We subsidize our other needed funds through doing a car wash (by donation, made $388 profit in 4.5 hours one Saturday morning), and a t-shirt sale (our logo, design on the back - bought shirts wholesale, had a shop print them, made about $250 profit). I don't charge my girls to play at all - it could be a commitment to play, not a cost to play in my opinion.

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gdc03120 said:

No problem at all. I can email/PM you a copy of the letter I use to show you what I use for businesses if you'd like. Just let me know.

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MorrisonFury said:

Coach james

I applied for my EIN tonight and got it. I will attach it to my account. Your explanation coincides with what my lawyer said as well. I agree that the 501c3 would be great for the tax exemption with buying equipment but I think for this season with the cost of applying for 501c3 vs the tax savings I wouldn't save much. I think it'll be best for me to get things lined up to go that direction in the future, especially if we start having more than one team. I really appreciate the help!

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