TB team and 501c?

[ssjones]

Does your travel ball organization have a 501c and how important is it to have one when trying to get sponsorships? I realize it's needed to be a tax deduction...

 

[marriard]

Yes and important if you want to get sponsors beyond companies your parents own.

 

[WARRIORMIKE]

Also if you need to get "Tax Exempt" from making purchases, then you need to get that form from the state, not federal.

 

[Lenski]

Charitable contributions may not be tax deductible depending on the type 501(c) corporation. Example: Charitable contributions are tax deductible if your org is a 501(c)(3) corporation. Most travel organizations who wish to file as a tax-exempt nonprofit organization become 501(c)(3) corporations. If your travel org is an extension of a social welfare organization or civic league they could be a 501(c)(4) corporation and contributions are not tax deductible.

 

[PA SB Dad]

Charitable contributions may not be tax deductible depending on the type 501(c) corporation. Example: Charitable contributions are tax deductible if your org is a 501(c)(3) corporation. Most travel organizations who wish to file as a tax-exempt nonprofit organization become 501(c)(3) corporations. If your travel org is an extension of a social welfare organization or civic league they could be a 501(c)(4) corporation and contributions are not tax deductible.

I looked into this a few years back. I listed my team as a 501(c)(7) - private not-for-profit club. It protects me from paying taxes on the "income" from the yearly fees the players pay (I have a separate bank account set up for the team with the EIN attached to it) and file a yearly report with the IRS. The donations made to the team are NOT tax deductable, and I let our sponsors know this. If I want to be listed as a 501(c)(3), the initial fee is $800 per year, and if the total "income" for the club over four years goes over $10K, the yearly fee to be a 501(c)(3) goes up to $3000 per year. It is not worth it unless you have multiple teams in the organization to split the fee and you do a lot of fundraising. Most of our donors are happy to write the check (usually $50 to $100) and not worry about the deduction.

 

[FP26]

I looked into this a few years back. I listed my team as a 501(c)(7) - private not-for-profit club. It protects me from paying taxes on the "income" from the yearly fees the players pay (I have a separate bank account set up for the team with the EIN attached to it) and file a yearly report with the IRS. The donations made to the team are NOT tax deductable, and I let our sponsors know this. If I want to be listed as a 501(c)(3), the initial fee is $800 per year, and if the total "income" for the club over four years goes over $10K, the yearly fee to be a 501(c)(3) goes up to $3000 per year. It is not worth it unless you have multiple teams in the organization to split the fee and you do a lot of fundraising. Most of our donors are happy to write the check (usually $50 to $100) and not worry about the deduction.

My experience is the same. The $800 per year seemed prohibitive in our particular situation.

 

[SCDad]

I have personally written off all of the direct softball expenses, whether or not the team has the proper 501C, or other filiing.

The IRS lets individuals write off up to $5000 for these type of expenses. Whether it is church, or softball, it does not really matter.

As long as you keep the number for EVERYTHING at a reasonable amount, less than $5000, the IRS does not give a darn.

Once the total donations go above $5000, the IRS can and will take notice. Don't go over that amount.

 

[Rocketech1]

I have personally written off all of the direct softball expenses, whether or not the team has the proper 501C, or other filiing.

The IRS lets individuals write off up to $5000 for these type of expenses. Whether it is church, or softball, it does not really matter.

As long as you keep the number for EVERYTHING at a reasonable amount, less than $5000, the IRS does not give a darn.

Once the total donations go above $5000, the IRS can and will take notice. Don't go over that amount.

Please cite a Internal Revenue Code code section that allows you to deduct all of your softball related expenses?

What you are suggesting is tax fraud, whether or not you actually get flagged for an audit is irrelevant. And yes it does make a huge difference if you donate to a qualified religious organization vs buying your DD the latest composite bat and trying to deduct it.

 

[mogsoftball]

We are 501c3 and yes it is good to have. Even for things like raffles many companies and sports teams only donate to 501c3. Also the companies many people wrk for do cmpany match but only for 501c3's.

 

[FrozenRope]

I looked into this a few years back. I listed my team as a 501(c)(7) - private not-for-profit club. It protects me from paying taxes on the "income" from the yearly fees the players pay (I have a separate bank account set up for the team with the EIN attached to it) and file a yearly report with the IRS. The donations made to the team are NOT tax deductable, and I let our sponsors know this. If I want to be listed as a 501(c)(3), the initial fee is $800 per year, and if the total "income" for the club over four years goes over $10K, the yearly fee to be a 501(c)(3) goes up to $3000 per year. It is not worth it unless you have multiple teams in the organization to split the fee and you do a lot of fundraising. Most of our donors are happy to write the check (usually $50 to $100) and not worry about the deduction.

When reading the IRS info, I was led to believe that the filing fee (Form 1023) is a one time gig. And I see the fee as 400 for under 10k annual revenue and 850 if above 10k. Am I missing something?