Travel Team funds

[Coachmark78]

I was head coaching a 10U team. In the spring we moved up to 12U and combined with another team that only had 4 players, we brought 6 players plus $1,000 dollars in team funds, they had no money. I created a non-profit organization with my social and opened a bank account. I was a
Co-coach now. Team Has played all year. The original 10U team does not like the new coach and are all leaving and following me to a new team. How do you divide that remaining 1,000 dollars up since most of the girls are
Going to the new team. Does it stay with the 12U team we combined with since they will
Keep the name, should the money follow the coach who owns the non-profit, should money be split 50/50 or solicitation of other ideas welcomed.

 

[BT3100]

How did the team play for all expenses for the season?
Was the $1,000 fully left after season?

 

[quincy]

The way you are describing it is a mess to begin with.

What was non-profit set up for and under who's name(s). More questions following.

 

[Coachmark78]

How did the team play for all expenses for the season?
Was the $1,000 fully left after season?

Basically the team new team fund raised and used all the money they made. The 1,000 was what was left over just happens to be about the same amount the old team
Brought to the table.

 

[Coachmark78]

The way you are describing it is a mess to begin with.

What was non-profit set up for and under who's name(s). More questions following.

Yeah. It was a mess.
The non-profit was set up so we could accept larger donations from business to support the team. Which most require a 501c3. To get a 501c3 you have to establish a non-profit. The non-profit was setup by me. My name is the only person.

 

[livingontheroad]

It belongs to the team that it belongs to, was raised for not a new team and not the girls leaving. You don't get your money back when you quit a team and leave. Even if you're the coach..........

Imo

But its a mess it sounds like. It may depend on the nonprofit and how the money was funded and accounting and such. I would think you would have to consult some nonprofit and tax rules. if it was earned under the nonprofit then it might need to stay with the nonprofit....or be donated.

A few of our parents once worked an extra fundraiser that no one else did....... Some of that extra money was paid back to the those parents by paying for their families meal tabs at restaurants after tournaments......things the nonprofit could legally do with the money. Alcohol not allowed for instance.

 

[Coachmark78]

It belongs to the team that it belongs to, was raised for not a new team and not the girls leaving. You don't get your money back when you quit a team and leave. Even if you're the coach..........

Imo

But its a mess it sounds like. It may depend on the nonprofit and how the money was funded and accounting and such. I would think you would have to consult some nonprofit and tax rules. if it was earned under the nonprofit then it might need to stay with the nonprofit....or be donated.

A few of our parents once worked an extra fundraiser that no one else did....... Some of that extra money was paid back to the those parents by paying for their families meal tabs at restaurants after tournaments......things the nonprofit could legally do with the money. Alcohol not allowed for instance.

I own the non-profit and the team is splitting. I think I will donate the money to the new team we are going to and close the non-profit. I guess I could donate the money to the other half of the team that is staying but they didn’t earn that money. The other team (10U) truly earned it. The other half may not even have enough to continue playing so that is another variable. The mess never goes away.

 

[quincy]

I do not think you will get chased down for the amount of money we are talking about here but it was raised for team X not your DD and her friends.

I would transfer the entire amount to the Team and walk away.

 

[GoGamecocks]

I'm a lawyer, but not your lawyer, so please don't consider this legal advice.

As an officer of the 501(c)(3), you have a fiduciary responsibility to the non-profit and you must not waste (that's a legal term) the non-profit's assets. Once the decision is made to dissolve the non-profit, you have to pay all of the organization's debts and liabilities during the wind-down (also a legal term). Once that's done, if there are any assets left, they should be distributed to another 501(c)(3).

If you do it any other way than "by the book" you could jeopardize the 501(c)(3)'s non-profit status, which could result in a reclassification of its receipts and could result in tax liability to the team and its donors..

 

[BT3100]

Basically the team new team fund raised and used all the money they made. The 1,000 was what was left over just happens to be about the same amount the old team
Brought to the table.

I'd do what Judge Judy would do.
Give the original 6 an equal share of the $1000 and call it a day.