what does it mean to be non-profit as far as a softball organization??

Many baseball showcase teams are 501 C3 non profit..and yes they pay their coaches (a good thing if you want to get away from daddy ball.) My summer college team is set up that way and we do pay our coaches (college coaches.)

How much one pays their coach depends on the money that is brought in each year, but there is always a budget.

However, one should not be fooled by the non profit tag. The more money the organization brings in, the more that will be plowed back into the organization. It is how it's plowed that can be different. For instance, we are subsidized by MLB. Because of that, our players MUST pay to play or it crosses the lines of professional baseball. However, the more successful we are the less money they will have to pay. Also, the more money we can pay a coach, the better talent the coach will be that we can hire.

Non profit does not mean no profit. It just means that profits are applied back to the organization. There are many profitable non profit organizations---cheeze mentioned one of the largest

 

curious to what is the price range a college kid would pay to play in the SCBL?

 

It depends...if its Brett, well, that will be big bucks!!!!!

Seriously, although most teams are the same, a few, like the Owls, are less.

 

revenue not equal profit

Think we are using profit too loosely in the thread. By definition, profit = revenue - expenses.

as Braves indicates, the organization can have a positive balance sheet at the end of the year but that excess revenue must be "plowed" back into the organization's expenses either for the current year or the next year.
No one can pocket that excess money. The would constitute profit taking and violate the non-profit rules.

Everyone the organization deals with has an opportunity to make a profit off the relationship. When you buy equipment from an equipment supplier, that equipment supplier is most likely to make a profit. If they sell it at cost, then they don't make a profit.

If you pay someone for services rendered (umpires, coaches, etc...), the money you give them is revenue to them, not profit. Whether they make a profit is a question of whether their expenses related to providing the service are less then the revenue they received.

All softball orgs I've been a part of have been 501c3 orgs and every org has been very clear and upfront with their budget. We've always had a budget review with defined expenses outlined at the beginning of the year and a final budget review at the end of the year.

 

I Remember!

I remember when Rodney doubled my salary at Nationals several years ago. It is like peeing in a dark suit, gives you a nice warm feeling but nobody notices. Let's see $0.00 X 2 = $0.00 yea I'll take the job.
Dad

 

LOL...kinda like the Mods here. They all doubled their salary, too..and was matched with a bonus

 

You got twice the pay because you picked up Travis and C at the airport....

 

The steps to become tax exempt:

1. Incorporate as a "non profit corporation". Specific requirements set by the state must be met. A board of directors must be established and bylaws that address some specific issues must be adopted. "Articles of Incorporation" must be filed with the state.

2. After incorporation is approved by the state, the organization can apply to the IRS for "tax exempt status", usually "501(c)3" designation. Once tax exempt status is obtained, it applies to both state and federal taxes.

Although not required, legal and accounting advice can expedite the process by insuring that all paperwork submitted is worded properly and satisfies all requirements of both the state and IRS. Sometimes law or accounting firms will agree to do pro bono work for small 501(c) organizations.

Once status is obtained, annual paperwork requirements is actually simple for small organizations. But there are some specific things that must be submitted annually to avoid loosing status.

Only donations to a tax exempt organization are tax deductible. Giving money or goods and receiving something of value in return does not constitute a tax deductible donation.

"Non-profit" organizations that have not obtained tax exempt status are liable for income taxes.