TB Non-Profit

[PA SB Dad]

My understanding is that 501(c)7 organizations are tax-exempt, but donations are not tax deductible since they are not charitable organizations but rather social clubs.

 

[swmo]

Does anyone know if a team is accepted as a 501c7 and the given tax exempt status, does that then allow them to make purchases without sales tax (uniforms and equipment?) Also, what about travel, does it allow the TEAM to pay for lodging expenses without tax? If thats the case, it seems that it may be worth the headache of filing. TIA

 

[JAD]

Since this thread has come back to life, I would like to add that some companies offer donation matching when one of their employees donates to a 501c3. We had several parents on our HS team who were able to pay 1/2 of their team fees and their companies paid the other half as matching funds.

 

[smddad]

Since this thread has come back to life, I would like to add that some companies offer donation matching when one of their employees donates to a 501c3. We had several parents on our HS team who were able to pay 1/2 of their team fees and their companies paid the other half as matching funds.

One team in our club got a size able amount of matching Microsoft money last year. The give money for time donated by employee.

 

[Momo'sDad]

My understanding is that 501(c)7 organizations are tax-exempt, but donations are not tax deductible since they are not charitable organizations but rather social clubs.

This is correct. If the purpose of registering your team/org as an NPO is to help with recruiting sponsors who wish to claim their contributions, then you want to be a (c)3. It's pretty easy to rationalize that youth sports teams are educational and serve the greater good of their communities.

I am not a tax professional.

 

[PA SB Dad]

I am not a tax professional.

Did you stay in a Holiday Inn Express last night?