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Stormbaseballmomma's avatar

My sons baseball team is not NON profit registered, what limits do we have on fundraising?

Asked by Stormbaseballmomma (2points) August 18th, 2009

We have just started a travel baseball team for my 11yr old son and some of his friends. We are not registered as a non profit, but are registered through a league. (If we pay them $300.00 a yr, we could be non profit under them) What are our limitations on sponsorships/fundraising with out the non profit status?? Can we legally take donations??? We just want to make sure we do this right, but with all the start up costs, we just don’t have the $300.00 right now to sign up under the leagues non profit status.

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3 Answers

FrogOnFire's avatar

I’m no accountant/lawyer, but I’ve done a lot of fund raising for non-profits, and this is what I’ve been told:

1) Donations to your team are NOT tax-deductible for the people who donate.
2) You have to pay sales tax when you buy items (most regular non-profits do not).

Otherwise, I think you’ll be fine. The IRS won’t come attack your baseball time. Just don’t go to businesses/people and ask for donations, unless you offer something in return. Right or wrong, most business will donate mostly for the tax deduction they get and they won’t get one from you due to your lack of non-profit status.

I run a school club that doesn’t have non-profit status and we frequently use fundraising companies, which work well. Otis Spunkmeyer, Country Meats, Krispy Kreme, etc.

Hope I helped you a little bit.

FlutherMother's avatar

@FrogOnFire has great advice. And it is true that companies usually only donate when they advertise (get a banner on the outfield fence or their name on the shirts).

To raise the money, could you divide the $300 by number of players and have the parents pay? If you have the customary 12 members, that would be $25 apiece. How about a simple bake sale or lemonade stand? I know kids who do that and people always are willing especially when they have homemade signs. Or maybe you can have a garage sale at one parents house and everyone on the team bring some items to donate. Just suggestions. I also thought of a 50/50 raffle, but there may be legalities involved in that you might not want to get involved in. Good luck. We just started our Fall Baseball season for little league and my son has practice tonight.

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