Call Us Now: +1 (877) 330-2677 Live Chat: ONLINE NOW            
https://d25eic0jctudgb.cloudfront.net/images/site/general/answers-to-answers-8743d0241f5d8c2c996225efe2063f89
https://d25eic0jctudgb.cloudfront.net/images/site/headlines/articles.jpg-5fa541d76bf4be9016b1176147b3bc96

Non Profit for Youth Sports Team

Asked by: Leah Phinpraphat - 11 July, 2011
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/default.png-f1597c1da25f30f8c1a941405e8391c8 Can a youth sports team operate under subchapter s or non-profit? We are asking for sponsorships and/or donations to cover team expenses such as equipment and tounraments and have been asked for a TIN. If we give this out there are tax liabilities,I assume. Not sure how to proceed.
Answered by: Lloyd Johnson - 12 July, 2011
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/36.jpg-879792e1197755ef7c796380de659758 Leah,

Depending on your donors you might need to form a Non-Profit Organization and file for all necessary exemptions with the IRS and the state. If they expect those donations to be tax deductible then that should be the way to go.

I'm not sure about sponsors, since it is possible that sponsorships can be recorded as advertising expenses (for the sponsors) and advertising revenue (for the team), however those questions are better addressed with a licensed CPA.

Your Non-Profit will need an EIN (Federal Tax ID), what you referred to as TIN. In general I would recommend you to consult with a CPA to see if Non-Profit is the right direction in your particular case (keep in mind its pretty costly and takes a few months to set it up correctly, including obtaining all the exemptions).

We Want To Connect With You!

Social Media is increasingly the preferred method for businesses to connect with their clients, peers and customers. We are dedicated to share information and useful tools to help you grow your business.

Like us on Facebook, follow us on Twitter, and let's begin the exchange to Help Grow America One Business at a Time - starting with yours!

https://d25eic0jctudgb.cloudfront.net/images/site/general/payment-methods-footer-052a63251a379d6e5ece1801f07470fc Official PayPal Seal SecurityMetrics for PCI Compliance, QSA, IDS, Penetration Testing, Forensics, and Vulnerability Assessment