#11  
Old 12-07-2017, 02:27 AM
jasonandsharon jasonandsharon is offline
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Hi, Sharon here. We are in CA and recived our 501c3 status 2 weeks ago. We filed a 1023EZ, cost $275.00. I would guess the EZ filing would suit your needs, without knowing more details. State filing was significantly lower, but that is CA.

Happy to share what we learned, and resources we used to complete the process if you want to private message, or email me at sharonkeoppel@eddiscsports.org

We started a bank account with US Bank in business name and and that takes a bit of planning and research in your local area for a bank that fits your needs.

As a side note of irony, our business focus is exactly this...helping clubs and groups take care of all the business stuff. Totally free at this point..looking to help grow the sport. Let me know if we can assist in anyway.
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  #12  
Old 12-07-2017, 04:38 PM
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brentjacobs brentjacobs is offline
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Quote:
Originally Posted by davetherocketguy View Post
Hmmm...As I understand it, in order to get a bank account set up I need a federal ID number for the club which means incorporating it - I guess? As you stated, yes my first step is what you've listed as #1.
This correct, you must have an EIN to get a bank account unless you want it in your personal name(would not recommend that)

If you’d like I have a great word doc version of non profit by laws(necessary if you want to go 501c3) that I can send your way.
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Old 12-08-2017, 08:30 AM
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davetherocketguy davetherocketguy is offline
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Originally Posted by brentjacobs View Post
This correct, you must have an EIN to get a bank account unless you want it in your personal name(would not recommend that)

If you’d like I have a great word doc version of non profit by laws(necessary if you want to go 501c3) that I can send your way.
You bet! PM incoming...
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  #14  
Old 12-09-2017, 11:41 AM
JohtoVillage JohtoVillage is offline
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Here is a question: I am looking into different options I have for the Ledgestone. We have a large charity component for the event, but also have a paid staff and then use some of the event profits to fund course work, and then leave some profits over from year to year to fund future tournaments. However, I would like to get away from having all of this tied to my name/taxes. Any thoughts?
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Old 12-09-2017, 01:27 PM
JRW III JRW III is offline
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501c3 - Charitable Organization vs. 501c7 - Social Club

Tax Advantage: Both organizations are expempt from paying taxes. However, a 501c3 has the added advantage of having the donations to the organization qualifying as a tax dedection for the person/entity making the donation.

Paperwork/Complexity: Pretty much every back office aspect of the 501c3 is much more difficult than a 501c7, including qualification, set-up, application process, filing, legal, accounting, corporate management, how you spend your money, etc. While the initial filing fees may not be a whole lot more, the amount you will need to pay the lawyers & accounts helping you out is much more (assuming you do not have someone in your organization who can do it for you).

Because of the complexity with a 501c3, most disc golf clubs are going to be better off with a 501c7. They will still get to set up bank accounts in the clubs name and be exempt from paying taxes (and still be able to pay reasonable salaries/stipends if needed). If an organization has to potential to raise a significant amount of donations by being a 501c3, then it may make sense to go a step further and set it up.
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  #16  
Old 12-09-2017, 01:36 PM
JRW III JRW III is offline
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Quote:
Originally Posted by JohtoVillage View Post
Here is a question: I am looking into different options I have for the Ledgestone. We have a large charity component for the event, but also have a paid staff and then use some of the event profits to fund course work, and then leave some profits over from year to year to fund future tournaments. However, I would like to get away from having all of this tied to my name/taxes. Any thoughts?
Both the 501c3 and 501c7 will enable you to pay staff, use some of the event profits to fund course work, and then leave some profits over from year to year to fund future tournaments. A non-profit is allowed to make money, it just needs to use the money for its mission, not distribute the profits to the owners. Furthermore, it is allow to pay reasonable salaries & stipends. Most non-profits save money year over year for future goals and also for "rainy day funds".

A 501c7 will give you more flexibility on how your funds are spent. You will need to read up on what qualifies as "charitable" for the 501c3. The amount of additional funds you can raise as a 501c3 will sway your decision between the two. Another option I often see is setting up both a 501c7 and 501c3. The 501c3 focus on the qualifying charitable operations and raising money for that and the 501c7 handles everything else.
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  #17  
Old 12-09-2017, 07:17 PM
JohtoVillage JohtoVillage is offline
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Thanks for the info. The issue is, this isn't really a club tournament, I run it outside of a club. Would that matter? Also, I don't currently pay myself for the 800+ hours I spend on the tournament. If I ever change my mind and decide to pay myself, I assume I probably couldn't do it? I don't really think a 501c3 would help a lot because I don't consider myself a charity, but I consider myself supporting a charity (St Jude). Would 501c7 allow me to have a sales tax exemption, or is that a local issue?
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  #18  
Old 12-10-2017, 01:30 PM
JRW III JRW III is offline
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Quote:
Originally Posted by JohtoVillage View Post
The issue is, this isn't really a club tournament, I run it outside of a club. Would that matter?
Just form a new organization/club whose sole purpose is to run the tournament.

Quote:
Originally Posted by JohtoVillage View Post
Also, I don't currently pay myself for the 800+ hours I spend on the tournament. If I ever change my mind and decide to pay myself, I assume I probably couldn't do it?
You can pay yourself so long as it is reasonable and accurately recorded. You would then include that wage on your personal income tax return. (side note, the non-profit club would need to file a 990).

Quote:
Originally Posted by JohtoVillage View Post
Would 501c7 allow me to have a sales tax exemption, or is that a local issue?
Local issue. Here in Texas, 501c7's still have to pay sales tax.
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