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Nonprofit Law/Non Profit Youth Football Club running a For Profit Football Club

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Question
Can the President and/or board member of a 501(c)3 Florida Fall Youth Football League run or be involved in any way with a For profit Spring Youth Football League.

And can the President of the Fall Youth Football League use the facilities/web site/fields of his Fall league to register players, advertise or play the games for the For Profit Spring Youth Football League that he is involved with.

Answer
The first answer is is "it depends upon whether there is actually an issue of personal benefit" (such as in described in your second question).

The second answer is "no". Internal Revenue Code section 501(c)(3) which is available at:
http://goo.gl/7lFll (on page 2, first column)
has, in part, that the 501(c)(3) organization must be "operated
exclusively for religious, charitable ...or educational purposes
... no part of the net earnings of which inures to the benefit of
any private shareholder or individual".

The term "private shareholder or individual" is defined in
regulations 26 C.F.R. 1.501(a)-1(c) "The words `private shareholder
or individual' in section 501 refer to persons having a personal
and private interest in the activities of the organization."
http://goo.gl/GtQpz on the right column of page 2.

Harvey Mechanic, Attorney at Law -
Harvey108@hotmail.com

P.S. This response is intended to be a general statement of law, should not be relied upon as legal advice and does not create an attorney/client relationship.  

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Harvey Mechanic

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I am an attorney and I volunteer time to answer general questions about U.S. Federal income tax issues of nonprofit 501(c)(3) public charities only. Those questions could be about 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 possible 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. If you do not make your question public then I will not be spending much of my donated time on answers that would not benefit the public. If you have other questions, please contact me at Harvey108@hotmail.com I will reply from my email. In any case, do not reveal confidential information to me until after I have contracted with you to provide personal legal services. My responses on this forum are intended to be general statements of law, should not be relied upon as legal advice, and do not create an attorney/client relationship. For me to consider your individual situation and how the law applies, I would need to gather extensive information about the 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 and I have maintained my status with the Bar since that time.

Education/Credentials

B.S. Columbia University in New York City, 1970

J.D. (Law Degree) Brooklyn Law School, 1990 -- Cum Laude.


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