Here is OYSA's take on non-profit/for-profits. Separately, there are requirements for any new youth club (non-profits included) that they have serve a new market.
None of these are really new requirements, but one benefit of a "unified" state is that with all of the major clubs in OYSA, the "new market" requirements have more meaning.
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Oregon Youth Soccer Association Clubs;
I want to bring to your attention a concern of a for-profit business operating under you, our nonprofit 501(C)(3) clubs.
https://www.irs.gov/charities-non-pr...-organizations
“To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual.”
A nonprofit club can may pay reasonable fees for a service to a company or individual that provides a service to a club. Clubs can pay wages, but not any other form of monies - that means quarterly estimated withholding, FICA etc - and that the member club 100% takes over the teams, coaches etc. The teams coming in have to accept that the board of the club can change their mind about what happens to a team, including formation etc- they are now part of "our" club and not a separate entity. This is also the case that there cannot be a contract between the two entities for anything other than services etc. Governance in all it's forms must stay within the hosting club.
You, our clubs, could put your nonprofit status in jeopardy. You should consult with your accountant and tax lawyer about third party for-profit business operating under you. To protect our nonprofit status, Oregon Youth Soccer Association will suspend any club that has a profit entity operating under them until a review with OYSA is completed, to confirm that your and our nonprofit status is not in jeopardy.
If you have any question please feel free to contact Steve Baker, OYSA President at stevebaker@oregonyouthsoccer.org or myself.
None of these are really new requirements, but one benefit of a "unified" state is that with all of the major clubs in OYSA, the "new market" requirements have more meaning.
________________________________
Oregon Youth Soccer Association Clubs;
I want to bring to your attention a concern of a for-profit business operating under you, our nonprofit 501(C)(3) clubs.
https://www.irs.gov/charities-non-pr...-organizations
“To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual.”
A nonprofit club can may pay reasonable fees for a service to a company or individual that provides a service to a club. Clubs can pay wages, but not any other form of monies - that means quarterly estimated withholding, FICA etc - and that the member club 100% takes over the teams, coaches etc. The teams coming in have to accept that the board of the club can change their mind about what happens to a team, including formation etc- they are now part of "our" club and not a separate entity. This is also the case that there cannot be a contract between the two entities for anything other than services etc. Governance in all it's forms must stay within the hosting club.
You, our clubs, could put your nonprofit status in jeopardy. You should consult with your accountant and tax lawyer about third party for-profit business operating under you. To protect our nonprofit status, Oregon Youth Soccer Association will suspend any club that has a profit entity operating under them until a review with OYSA is completed, to confirm that your and our nonprofit status is not in jeopardy.
If you have any question please feel free to contact Steve Baker, OYSA President at stevebaker@oregonyouthsoccer.org or myself.
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