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Nonprofit Law/Do i Qualify for NOn profit

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Question
Hello,I own and play for an adult amateur football team. i started the team last year 2013. We played a Whole season;a total of 5 home games. Each home game i had to pay $300 for stadium use, $150 for security and 400 for referees all out of pocket players did not get paid, we couldn't charge admission to get into games. I was told that only nonprofit organizations can rent the field free of charge. I'm wanting to know does my football team qualify for nonprofit and if so what all steps do i need to take to make this happen? I already have DBA.

Answer
It appears you are going to be a social/recreational club and such activities do qualify for IRS 501(c)(7) nonprofit organization status.  IRC 501(c)(7) exempts from federal income tax, clubs "organized for pleasure, recreation, and other nonprofitable purposes, substantially all of the activities of which are for such purposes and no part of the net earnings of which inures to the benefit of any private shareholder."
http://www.irs.gov/irm/part7/irm_07-025-007.html

If you want nonprofit status you would need to establish nonprofit recreational trust, incorporate under a state's nonprofit corporation law, or set up an unincorporated nonprofit association. Your organizing document would need to state that it is organizing under Internal Revenue Code Section 501(c)(7) and have other required clauses. You would have at least
3 directors, with control of the board not in persons related by blood, marriage or other business.

  After the initial set up, you would need to apply for a EIN (tax id number) http://snipurl.com/gij28

   Before you start with all of that, though, I suggest that you request from the field manager a description of the documents that they would need to grant you free use.  Some field managers want certain documents and will not accept others.  For example, some require a determination letter from the IRS that your organization is exempt from income taxes.  Some would require a nonprofit corporation and not accept a trust.  After you receive that information in writing, then you can send to me and I will comment further as to the procedures in Texas.

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.

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.

Nonprofit Law

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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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