Where does the Money Go? (Take II)

[espola]

What enables clubs to operate as 501(c)(3) entities? It seems like many do based on their descriptions or charter statements. And if they are non-profits, why aren't our club fees considered donations? Is it because we are members?

You are paying dues for program services. Since you receive something for your dues, it is not a donation. Of course, you can always make additional "donations", and try to claim them as tax deductions.

Our club president for a while was a lawyer and CPA. I asked him, since I was a board member, if I could deduct the costs of traveling to State Cup to support our club's teams. He said not if my kid was playing.

 

[MWN]

What enables clubs to operate as 501(c)(3) entities? It seems like many do based on their descriptions or charter statements. And if they are non-profits, why aren't our club fees considered donations? Is it because we are members?

Having a charitable purposes (teaching youth sports) is what enables clubs to operate as 501(c)(3) or 501(c)(7) organizations. Fees and dues that are intended to benefit the member (or child) are not ordinarily deductible because the member is being provided services arising directly from that organization. If the organization was provided services to your child regardless of whether you donated, its a different analysis. Now, if you spend your 2k on your player and then spend another 2k on a disadvantaged player (unrelated to you), you could likely deduct the 2k for the disadvantaged player.

Getting creative, child care is deductible, so if your child was put into an after-school child care program that happened to focus on athletic training then it could be deductible.

Consult with your accountant, but expect an answer of "No" because you/your child is a direct recipient of the services and paying those dues and fees are directly tied to the services provided.

 

[MWN]

You are paying dues for program services. Since you receive something for your dues, it is not a donation. Of course, you can always make additional "donations", and try to claim them as tax deductions.

Our club president for a while was a lawyer and CPA. I asked him, since I was a board member, if I could deduct the costs of traveling to State Cup to support our club's teams. He said not if my kid was playing.

You answered while I was typing. Agree.

 

[Chicharito]

How ironic, the benefits of an affiliation between OJSC and CDA Slammers are the same as those for CDA Slammers joining Slammers FC (Newport):

• Shared vision for the future of youth soccer
  
• Commitment to player development at all levels
• Collaboration to enhance and further develop the existing club curriculum
• Strengthening of our continual professional coaching through education
• Higher level of exposure and support for collegiate bound athletes
• Direct Path to ECNL and Academy
• Cutting edge resources, professional coaching, structured curriculum, state of the art facilities

This are all great benefit but bottom line is not all coaches/teams will be able to deliver on them regardless of affiliation.

 

[Soccer Mom]

South Slammers FC is an unethical club. If they lose a coach mid-season, they refuse to refund money and will not provide the players with the contractual obligations such as a new coach and the tournaments in the contract. Find a more ethical club.