Question for those who've run leagues

[BuckeyeGuy]

In 2014, my rec league had about $14k left over at the end of the year. None of that money was carried over to 2015.
At the end of 2015 we had about $8k, and none of that was carried over to this year.

We are a not for profit, 501(c)(3) I think.

So my question to those of you with experience in this stuff: where is my money going? In other words, is there some legal loophole that prevents funds from being carried year to year, and if so what can legally be done with the money? It sure as heck isn't given back to the parents.

 

[canyonjoe]

I'm not an accountant, but you can certainly carry over the money to the next year whether or not you have 501C status. You better check where this money is going as it has to go somewhere.

 

[#7sDad]

Yikes!! Nonprofit or not, the org still needs to file annual reports and those funds better be accounted for or somebody going to the pokey!


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[YOCOACH]

I can tell you from experience with our past rec league, the monies were moved to another account which funded the park improvement. Over several years the money was collected and then spent on over $30k of red clay/ field dry mix such as that found on the Cleveland Indians Progressive park. It was mixed in with the topsoil already on the fields. This allowed us to play no more than an hour later after a huge deluge of rain. Several years later, this money was spent on a 45'x75' indoor facility that had 3 pitching/hitting tunnels that could be pulled back to have almost a full indoor field to practice on. However, this was all laid out at the first league meeting of every year and the money was accounted for on a spread sheet handed out to all managers and coaches. If this hasn't been done, then you have a right to be concerned. at should question it.

ETA: The money collected now is slated for two outdoor batting/pitching tunnels with lights for the current teams to warm up in before games since space is becoming limited.

 

[WOODY123]

Does your league have a treasurer? Who prepares the annual tax filings? If neither of them have an answer for you then I would ask to see the bank statements and figure out where that money is going at the end of the year. You can carry a balance in a 501 (c)(3). We carry over $80K in our LL program. I run a LL softball program and i'm a treasurer for a local TB 501 (c) (3) as well as being a CPA.

Hopefully the money is just being moved to another account for a capital improvement project like YOCOACH mentioned.

 

[murphdog]

I was the treasurer of our league for a few years. We always carried over the left over money from season to season and I was responsible for providing the board with a financial statement at every meeting. We only had one account though

 

[BuckeyeGuy]

OK, thanks. I need to get more involved with the board I think. I want my money back lol!

 

[marriard]

OK, thanks. I need to get more involved with the board I think. I want my money back lol!

Yes... not-for-profits can carry over money year to year if they have it. You can absolutely have a reserve and it can be pretty much however much you want it to be. I know our local rec league likes to be in the $50k range when possible just in case something big comes up (which it has 3 times in 20+ years I am told).

Not-fot-profit just means all the funds must be spent on the orgs objectives and not for making money for the 'owners'. Otherwise it can be run just like a business including paying employees, buying services, etc, etc.

 

[Momo'sDad]

Who controls those funds? You're running the league, right? You need to get the accounting done immediately. Like yesterday.

 

[Lenski]

BuckeyeGuy

The Treasurer should provide copies of the detailed bank statement plus a summary statement showing previous bank statement balance, deposits with explanation (credits), expenditures with explanation (debits), and current bank balance to the Board of Directors. The summary statement should be signed and dated by the Treasurer as the preparer, and signed and dated by the VP or President as the reviewer. If at any time during the year the league moves funds to a reserve account or accounts, there needs to be a full accounting of those as well. Are you a member of the Board of Directors?