Nonprofit Law/Non-profit status

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Question
My Partner and I have started a non -profit Association To help inner city youth athletes eventually obtain scholarship opportunities. We have been aproached by another business person. He's allowing our Association to use 3 of his football fields to raise money for our Association. His offer is to allow us to keep team entrance fees. Part of which we pay for jerseys, flags and footballs,and league insurance. We also get to keep all gate access fees. He gets all concessions plus 15% of what we make.Will we still be able to go non-profit if we roll this back over in to the Association to use for our youth programs

Answer
The IRS allows 501(c)(3) organization status if contracts with outsiders provide to them no more than what would be reasonable. The question then is whether all concessions plus 15% of your gross income is reasonable. I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. If you want me to analyze the numbers I would need to spend a substantial amount of time and that would be beyond my offer of free service.  If you want to hire me, send me an email directly to my email address below and I will quote you my fees.

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. For me to consider your individual situation and how the law applies, I would need to gather more information.

Nonprofit Law

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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.


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