Question for those who've run leagues

[BuckeyeGuy]

Not a member of the board, just the lowly rec softball commish lol! Our association runs 15 different programs in 11 sports, of which softball is probably mid pack in terms of size - and I have approx. 700 girls, just for reference. 700 is a pretty big softball league from what I gather, but we're small potatoes within our organization (soccer has 2500).

Thanks for the info folks - I'll be digging into the finances once we get registration open this weekend.

 

[Sparky Guy]

Not a member of the board, just the lowly rec softball commish lol! Our association runs 15 different programs in 11 sports, of which softball is probably mid pack in terms of size - and I have approx. 700 girls, just for reference. 700 is a pretty big softball league from what I gather, but we're small potatoes within our organization (soccer has 2500).

Thanks for the info folks - I'll be digging into the finances once we get registration open this weekend.

Don't be surprised if you get the "NUNYA" -- None of your business-- from the Board. Then be asked to step down after the season. From what you've been posting here you're stirring things up there and the Good Ole Boys don't like that much. Hopefully, that's not the case and the money was moved and used towards improvement of the facilities.

 

[BuckeyeGuy]

Don't be surprised if you get the "NUNYA" -- None of your business-- from the Board. Then be asked to step down after the season. From what you've been posting here you're stirring things up there and the Good Ole Boys don't like that much. Hopefully, that's not the case and the money was moved and used towards improvement of the facilities.

I could live with that lol!

My concern is that the money was taken from me to give to fencing or drill team or some such.

 

[Dabears17]

If its a 501c, you should be able to find their form 990s online at GuideStar nonprofit reports and Forms 990 for donors, grantmakers, and businesses

If I was the softball commish, I'd want to see the financial summary with regards to the softball league.

But it could be something as simple as all leftover funds at the end of the year are desposited in the reserve funds for the entire organization.

 

[djcarter1966]

If you are part of a larger organization and you are saying that softball is bringing in money that it is not all being spent on softball but after the year is over softball money goes to another sport then while it is not the best way to do things nothing illegal is happening softball is just subsidizing another sport or activity that is not making any money happens all the time. First clue should be who you make your check out to if it is the City Park and Rec Dept then that is what is happening and is not really unusual as long as all softball needs are covered whats leftover goes to support other activities, a lot of times they do this to keep costs down for sports that might cost a little more than others so kids can have an opportunity to try things they might not otherwise be able to afford to do.

 

[BuckeyeGuy]

If its a 501c, you should be able to find their form 990s online at GuideStar nonprofit reports and Forms 990 for donors, grantmakers, and businesses

Well, total revenue of $1.3 million in 2014, $1.1 million total expenses, and net assets of $270k. That's good to know. Softball accounts for 5.7% of the income, 6.7% of the expense, and 9% of the net assets at the end of the year.

I also noticed that we're paying our exec director $53k, which is fine with me, but I'm being dinged for 21% of her salary. That doesn't seem right lol!

 

[djcarter1966]

Well, total revenue of $1.3 million in 2014, $1.1 million total expenses, and net assets of $270k. That's good to know. Softball accounts for 5.7% of the income, 6.7% of the expense, and 9% of the net assets at the end of the year.

I also noticed that we're paying our exec director $53k, which is fine with me, but I'm being dinged for 21% of her salary. That doesn't seem right lol!

This actually means softball on its own lost money that year. Maybe there was a big purchase or something?, but it does not seem like you should be losing money if the softball director has a clue.

 

[BuckeyeGuy]

This actually means softball on its own lost money that year. Maybe there was a big purchase or something?, but it does not seem like you should be losing money if the softball director has a clue.

It's not directly proportional. We (softball) made $24k in 2014. That money was not in my P&L at the start of 2015, hence my wondering aloud where my money went.

 

[sluggers]

So my question to those of you with experience in this stuff: where is my money going?

You need to ask the treasurer and the board.

In other words, is there some legal loophole that prevents funds from being carried year to year,

I'm not sure what your question is.

The board is not required to spend every dime it gets every year. If there is a surplus at the end of the year, the organization can keep it.

As long as the organization is actively pursuing its stated goals, there are no limits as to how much it can accumulate.

If the organization stops its activities, then there is a question of "what to do with the money".

and if so what can legally be done with the money?

Anything "duly authorized and in furtherance of the objectives of the organization".

SO:

1) The board has to approve the spending, either generally or specifically. E.g., the board could say, "Joe, go buy a pitching machine." The board does not have to specifically approve a $934.45 expenditure.

2) The spending has to be "reasonably" related to running a softball organization--supplies, salaries (assuming approved by the board), softballs, field rentals, training, etc.

 

[BuckeyeGuy]

The board is not required to spend every dime it gets every year. If there is a surplus at the end of the year, the organization can keep it.

As long as the organization is actively pursuing its stated goals, there are no limits as to how much it can accumulate.

If the organization stops its activities, then there is a question of "what to do with the money".

This was the part I was wondering about. Never dealt with this stuff, but I'm starting to get a handle on it. Thanks!