Our club is looking at 501(c)(3) status. What are the pros/cons of doing that, if you have experience with that status? Thanks.
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A corporate sponsor is offering us a large donation, which would be doubled if we were 501(c)(3) status, if I understand another club member correctly.
We have to have a board of directors, by laws, official meetings, the whole nine yards
+ The club does not have to pay sales tax on purchases. That could be significant for a club that plans on making large purchases like new baskets or course equipment.
+ a lot of private foundations and government agencies will only give grants to non-profits.
- There are fees to apply for non-profit status, plus you will probably have to pay an accountant or attorney to submit the necessary paperwork.
If you are mainly looking at the "no sales tax" benefit then you would make a lot of purchases to overcome the cost to apply.
zgmc might be right, "why would you want to do this?"
A corporate sponsor is offering us a large donation, which would be doubled if we were 501(c)(3) status, if I understand another club member correctly.
Our baseball league is 501(c)(3)
Dozens of teams and hundreds of players though
We have to have a board of directors, by laws, official meetings, the whole nine yards
Shouldn't most clubs be run this way? If you have a membership, tournaments, leagues or any activity that handles and decides how money is earn or spent, should.
It allows for controls to be put in place and transparency of financial activity.