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Nonprofit Law/use of non profit funds

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Expert: Harvey Mechanic - 7/2/2009


Question
My daughter plays for a softball team, that the "team organization" is non profit, but they are under the "umbrella" of their for profit training facility.  Can the funds that are raised for the non profit team be used to pay for the usage fee of the for profit training facility?  Can you please clarify this for me.  The team is not profit, but does not have a 501c3 status, just a non profit tax id#.....

Answer
I have in my profile that this free forum is only for relevant IRS federal exemption issues of 501(c)(3) organizations. It appears that your daughter's team is either incorporated in the state or is an unicorporated association in the state. You referred to "funds that are raised".  If sales are involved, I would need to know the subsection of IRC 501(c) under which the organization was incorporated or otherwise organized. After you reply I will respond again.

Harvey Mechanic
Attorney at Law
Harvey108@hotmail.com

Nonprofit Law

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Harvey Mechanic

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US Federal tax issues of nonprofit 501(c)(3) public charities only. Establishing and maintaining legal requirements for such non-profit organizations in the United States, including Internal Revenue service filings and requirements. I will not be working on this free forum to answer questions about Nonprofit's unrelated or for-profit businesses or how to fill out forms. This forum is only for general questions about federal tax law, not as the law applies to your specific situation. To search my previous answers you can do a Google search by "site:allexperts.com/q/nonprofit" without the quotes and then add your search terms before hitting enter.

Experience

I have been practicing law and especially the law of nonprofit organizations since 1990 when I was admitted to the New York Bar.

Education/Credentials
B.S. Columbia University in New York City, 1970 J.D. (Law Degree) Brooklyn Law School, 1990 -- Cum Laude

To inquire to have me work for you on matters beyond what I offer on this free forum contact me at 302.824.0757 or to: Harvey108@hotmail.com.

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