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Nonprofit Law/Merging with a 501 c3 Club


Our youth sports organization has chosen to become a part of a larger nonprofit club in our area.  

We have an EIN for our organization as well as our own bank account.  We have never filed taxes using our EIN (not for profit-youth community sports) and the IRS has never asked us to.  Our organization works more like a cooperative organization with funds being put into the account equally  by the parents.  These funds are then used to pay team expenses such as coaching, practice facility use and competition fees.  

We thought it would be a good idea to become part of the larger organization in the area to open up more fundraising opportunities as we would be able to benefit from their nonprofit status.  After writing and signing the agreement the larger club is now refusing to grant us access to any benefits until we close our EIN.  Can we still maintain our own EIN while still falling under the umbrella of the larger organization?

Can you help me better understand our obligations if we choose to continue our agreement?
Thank you.

I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. Therefore, I am assuming you are referring to the "larger nonprofit" as such an organization.

I am also assuming from what you wrote that your group has been an unincorporated association using a particular name for business and banking purposes with funds going through the bank with your EIN.

The word "umbrella" is not really applicable here, because it appears that the larger 501(c)(3) organization wants to be the only entity, with your youth sports organization (YSO) simply becoming a division within their structure.  You would not then be able to use your EIN as one entity may only use one EIN.

If you want me to reply as to your obligations under that agreement that was signed by both parties, I would need to see that agreement. For me to read that and reply I would need to spend a substantial amount of time.  If you want to hire me for such work, send me an email directly to my email address below and I will quote you my fees.

Harvey Mechanic
Attorney at Law

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


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 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 "" without the quotes and then add your search terms before hitting enter.


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.


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

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

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