You are here:

Nonprofit Law/Question about a 501 C non profit

Advertisement


Question
We have a 501 c non profit organization which represents our baseball and softball program. The softball coach wants to get his own 501c and stated his own organization. The board will not let him branch off and start his own 501c. The board decide to let him establish a board and test the waters to see if the program would be ok to run on there own. The softball board has started there own checking account and the baseball board is the 501c holder. The baseball treasure has a checking and saving.  

1. Who is help liable for the money with in a 501c non profit?
2. Can a organization get a 501c with out the approval from the board.

Answer
1.  The 501(c)(3) organization is responsible to the IRS to make sure all funds (baseball and softball) are used for charitable, educational or religious activities.  Any deviations could result in loss of exemption by the IRS.

2. Without the approval of the Board a division of a 501(c)(3) organization is not authorized to set up its own bank account, using the EIN (Employer Identification Number - or Taxpayer Id number) of the 501(c)(3) organization.

Harvey Mechanic, Attorney at Law -
Harvey108@otmail.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.  

Nonprofit Law

All Answers


Answers by Expert:


Ask Experts

Volunteer


Harvey Mechanic

Expertise

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.


©2016 About.com. All rights reserved.