Setting up a team

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Jul 25, 2018
7
0
I’m so sorry to hear that Hube �� that seems to be a common theme. It’s scary, but we’re motivated. If we don’t try it for them then no one else is going to. We’re all these girls have! Thanks for your support! ❤️ If you don’t mind me asking, about how much did you personally have to put into it just to get it started?
 
May 27, 2013
2,353
113
Here’s what I did a few years ago when I started my own team. I went to my bank and opened up a small business account per the banker’s recommendation. I asked for a debit card to be attached to it. This account was only used for the team. We did not apply for 501(c)3 status. The debit card made it nice the able to pay for tourney fees, insurance, sanction fees, uniforms, etc. all online. Be sure to keep all of your receipts. I kept an online spreadsheet as well as used an accounting book just for easy access if anyone wanted to review it. I believe it was no interest account because there was not a large amount of money sitting in there at any point in time. The account was opened in the team’s name.
 
Jun 12, 2015
3,848
83
Well, I don't know about the non-profit thing other than it's a lot of work both to set up and to maintain. But I can tell you a positive story if you'd like. Well, it's mostly positive and I'm just going to focus on those parts for the sake of the story.

My DD played 6U and 8U rec ball through our county. She was with the same coach the whole time, and played All Stars through the county with him as well. After All Stars he decided to form a travel team and took my DH on as an assistant coach. So our first year of travel, 2nd year 8U, was basically a rec team that went travel. It was not even that cohesive, because only a few girls were from our own rec team; the rest were from various other rec teams in our county and the next county over. We kept it light and fun. Just as importantly, we kept it cheap. It was a great year, a good intro to travel ball. We're not still associated with the same coach but he's still coaching. Just last year he had a team full of those same girls he coached back in All Stars.

It's hard and exhausting to run a team and it might not go well. But it might be awesome. :)
 
Jun 1, 2015
500
43
Here’s what I did a few years ago when I started my own team. I went to my bank and opened up a small business account per the banker’s recommendation. I asked for a debit card to be attached to it. This account was only used for the team. We did not apply for 501(c)3 status. The debit card made it nice the able to pay for tourney fees, insurance, sanction fees, uniforms, etc. all online. Be sure to keep all of your receipts. I kept an online spreadsheet as well as used an accounting book just for easy access if anyone wanted to review it. I believe it was no interest account because there was not a large amount of money sitting in there at any point in time. The account was opened in the team’s name.

I legitimately did the EXACT same thing as Vertigo listed above, and I've had ZERO issues whatsoever. Granted my team is a 16U summer-rec team (May-July) so we're not accumulating a ton of money from either sponsors or anything of the like, but it's a better place to store money for use than in a coffee can in the backyard (subject to your opinions/experiences, this isn't Cousin Eddie's trailer in "Vegas Vacation"). So far I have had no problems if anyone's asked about what we have for money - I also keep a Spreadsheet/Word document of all my purchases listing who I bought from, what it was for, and running tabs from season to season. We were too small/not receiving enough to warrant 501(c)3 status, so as long as we clearly advertised the money was going to softball-related expenses and that funds could be deductible as advertising, we've been in the clear so far. =)
 
Jul 25, 2018
7
0
Softball Mom, this is almost exactly what our situation is! Rec ball girls, from our area. Different teams, but same area. My husband is the assistant coach, our head coach was my daughters fall ball coach. I am so dead set on making this work!!! But oh, it’s already so stressful! Thanks so much for your story! It’s inspiring! ♥️
 
Jul 25, 2018
7
0
I legitimately did the EXACT same thing as Vertigo listed above, and I've had ZERO issues whatsoever. Granted my team is a 16U summer-rec team (May-July) so we're not accumulating a ton of money from either sponsors or anything of the like, but it's a better place to store money for use than in a coffee can in the backyard (subject to your opinions/experiences, this isn't Cousin Eddie's trailer in "Vegas Vacation"). So far I have had no problems if anyone's asked about what we have for money - I also keep a Spreadsheet/Word document of all my purchases listing who I bought from, what it was for, and running tabs from season to season. We were too small/not receiving enough to warrant 501(c)3 status, so as long as we clearly advertised the money was going to softball-related expenses and that funds could be deductible as advertising, we've been in the clear so far. =)

Thank you! I thought in order to get sponsors we had to have the 501, but maybe it would work without it. As long as we can keep an accurate record available I think this will work! Thanks for your advice! Much appreciated!
 
Oct 21, 2016
189
28
I’m so sorry to hear that Hube �� that seems to be a common theme. It’s scary, but we’re motivated. If we don’t try it for them then no one else is going to. We’re all these girls have! Thanks for your support! ❤️ If you don’t mind me asking, about how much did you personally have to put into it just to get it started?

The only out of pocket expenses I can remember before anyone paid was the fees to rent fields for try outs. Once we had a few kids join and down payments made it was reimbursed.
 
Oct 21, 2016
189
28
Thank you! I thought in order to get sponsors we had to have the 501, but maybe it would work without it. As long as we can keep an accurate record available I think this will work! Thanks for your advice! Much appreciated!

You will have a hard time getting business to donate money without the 501c status unless they simply want the logo exposure. The main reason that businesses donate money/sponsors anything is so the amount can be written off on their taxes. If you don't have that 501c status they won't be able to write off any dollars given to your team.
 

Tom

Mar 13, 2014
222
0
Texas
If the team is going be funded primarily by dues no need to get a 501c3. There's a lot of admin work that comes along with it, which isn't worth the time if you'd only have an occasional small donation made. Went through exactly the same thing setting up a travel baseball team. I believe (as others have said) that as long you keep finances completely separate you should not have tax issues as long as you don't personally withdrawn money from the team account without having a expense reimbursement record. Be totally transparent with the accounting. Set up a separate PayPal account that is linked to the team account for $ collection. Save and give receipts for everything.

Lesson I learned...be prepared to front expenses and to become a debt collector. Inevitably there will be a few people who do not pay on time and "forget to bring their checkbook" when fees are due. That will leave a deficiency that will need to be made up somewhere (most likely by you) when it comes time to register for tournaments, pay for uniforms, buy equipment, get cash for pay at the plate tournaments etc. If you have to front money personally don't pay for anything directly through your accounts or with your cash. Deposit exact expense amounts into the team account then pay for expenses with team account; much clearer trail that way when you reimburse yourself when funds are available. Build in at least an extra $300 into first seasons budget. Being a start up there are going to be incidental expenses you didn't anticipate. When you have a season budget set, collect at least half from each player up front. If you do it month by month and people pay late or someone leaves the team it causes havoc. Lay out clear financial expectations for parents and stick to it. For 1st season agree to zero out your account at end of season in case you overestimate expenses, either by equal distribution back to parents or by spending remaining on end of season party etc.

Good luck.
 

Strike2

Allergic to BS
Nov 14, 2014
2,044
113
Some people make this more complicated than it needs to be. Setting up a separate account is fine, and people often do it, but it isn't really necessary. Good record keeping is good enough. Although you are accountable to the parents, operating a single ball team isn't going get any kind of IRS attention. It's a expense and reimbursement thing, not a money-making taxable event...I assure you of that part.

I like the model where you get enough money up front to handle common expenses, such as team registration and insurance, game balls, and whatever team gear you might need, and an extra pad for things that inevitably pop up. It all depends on what you're going to do, but ~$50-100 per player is a good starting point. Price uniforms and any individual gear separately, and there's nothing wrong with collecting this up front with with the team assessment BEFORE you order. This helps ensure player commitment, or at least that you won't be out any money if someone suddenly leaves. You should make the team assessment non-refundable, and can opt to buy back the uniforms (at a discounted price) if a player leaves mid-season. In any event, the upfront player financial commitment will be very reasonable, and you won't have to ask parents to write you checks for much more than a couple-hundred dollars.

After that, pay as you go...collect for tournaments and batting cage time as you go along. If someone forgot their checkbook, carry them for a weekend, but if they don't get current by the next tournament, their kid doesn't play. However, don't be under any illusion that this won't cost you money. It will...somehow. Best of luck!
 
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