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Nonprofit Law/fundraisers laws california

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Question
my son is on a baseball team & a travel team, they play league ball and travel ball. they claim they are a non-profit?
not sure how many people are on the board? how many people should be on the board this is California?
they say they are non-profit and have fundraisers but they expect us to participate or do a buyout amount? is that illegal to do? the amount and never showing up front it was says determined depending on the fundraiser

Answer
If you have the official name, or at least part of the official name of the organization, you can go to http://goo.gl/IKig and click the box "Corporation name" and search to see if the organization is incorporated.  If it is, then it would be a Nonprofit Public Benefit Corporation.    http://goo.gl/Zm9Z6  starting at section 5002 is the California Nonprofit Corporation's law and starting at 5110 is the law for Nonprofit Public Benefit Corporations. California requires only 1 director for Public Benefit Corporations
"The number or minimum number of directors may be one or more." Cal. Corp. Code 5151

However, if the organization received a determination letter from the IRS that it is exempt from federal income taxes under section 501(c)(3), the IRS would have wanted at least three directors and that the board is not controlled by related persons (related by blood, family or for-profit business).

501(c)(3) organizations are allowed to assess fees just like universities do for students and that "buyout" amount is actually a fee.  The organization gives families an option to work in exchange for the fees, and that is fine as long as it is treated as ordinary employment income (with employment taxes and reporting).  I don't know what you mean by "the amount and never showing up front it was says determined depending on the fundraiser", so, if you have a question as to what you mean there, please clarify. After you give me that information I will reply further.

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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