Need Info: 501(c)3 Non-Profit For Baseball Team

The IRS forms are available from the IRS web site, www.irs.org, and don't let the size of the application send you into depression. The form has many sections, but in turn, lots of them won't apply to you. Generally speaking, you'll need to create a 3 year plan, outlining how you'll raise funds, and how you'll spend them. Have an attorney set up the entity as a nonprofit corporation, either membership or nonmembership (I prefer nonmembership) The form is form 1023. The IRS web site has tons of helpful information, including sample forms, guidelines, booklets, etc. It isn't all that hard, just takes some time and some information gathering. Good luck!

Find an attorney to help. Some will help with 501(c)(3) applications pro bono.

We are going thru the process now. I did all the paperwork myself with the review and guidance of an attorney. It took about 2 or 3 weeks to complete the paperwork. Organize the 1023 strictly in accorance with the instructions and you should be fine.

You need to incorporate as a non-profit in your state and get your tax id number using IRS form SS-4 I think it is. You can also call the IRS and get a tax ID # that way but fill out the form before you call so you have all the information they will ask for.

The application asks for supplemental information in various sections. Be sure to identify the applicable section on the pages with the additional info. Keep everything organized and easy to follow.

If you haven't already done it, you can get the forms off the IRS.gov
http://www.irs.gov/pub/irs-pdf/f1023.pdf
http://www.irs.gov/pub/irs-pdf/fss4.pdf

Here is the checklist of the documents you may need to submit:
1. Form 1023 Checklist.
2. IRS Form 2848, Power of Attorney and Declaration of Representative.
3. Expedite Request letter.
4. IRS Form 1023, Application for Recognition of Exemption.
5. Articles of Incorporation & State Corporation Certificate
6. Corporation By-Laws (Organizing Document)
7. Form 1023 – Part IV Attachment, Narrative Description of Your Activities.
8. Form 1023 – Part V, VI, VIII & Schedule D explanations.
9. Form 1023 – Part IX Financial Data Explanation
10. Form 1023 – Schedule D, Part II 4.e., Supporting Documentation
11. Conflict of Interest Policy
12. $500 Application Fee

You will need to modify your organizations By-laws or Articles of Incorporation to include specific language that the IRS requires. The language is included in the 1023 instructions.

Our attorney tells us getting approval back from the IRS will take anywhere from 2 to 6 months. Probably closer to 6.

Best of luck.

Go to the AAU Web Site and then go to open page, click on join, go to third button where it says for club option, click on that button and there are three levels of club options. For $300.00 you can be a charitable enity under the AAU umbrella. You do have to fill out a number of pieces of paper work. Read the directions as it tells you after your paper work is filled out how to call the IRS and get your EIN number. You have to be an AAU member to join. Its worth it. Hope this helps.

You may find this link helpful. http://www.irs.gov/irm/part7/ch10s27.html

I have been involved with leagues getting exemptions but not individual teams. I would assume it harder for a team to get the 501(c)(3) designation then a league. i.e. maybe you can qualify as a 501(c)(4). If you go with the AAU affiliation you will be required to follow their model (bylaws/rules) in addition to paying the annual fees. - similiar to Little League - make sure you can live with the AAU bylaws. Futhermore 501(c)(3)s are regulated by your state, so register with the state asap to avoid issues and do not ignore the state agency as the state is far more likely to contact you regarding problems then the IRS.

Note, player fees paid to a 501(c)(3) or (4) are not tax deductable.

Thanksn for all the links -- just what I needed to get started!!

Once recognized as a 501 (c) (3), make sure you have a good accounting system in place. The first level of recognition as a 'charitable organiztion' will will be for a 5-year 'advance ruling period'. After that, you will be asked to complete another filing that will include an accounting of your finances so that a final / permanent ruling can be made.

The very simplest and least expensive way to do it is through the AAU level 3 membership, without a doubt. I was in the middle of doing this independently when the AAU began offering this option. My CPA told me I'd be nuts to do it any other way than the AAU route.

It's very simple, only takes about 10 minutes, unless you need to get a Federal Tax I.D. number, and you can pay for it through a credit card.