We receive inquiries from nearly every kind of amateur sports club. People often ask us why an amateur sports club should obtain federal §501(c)(3) status.

One answer has to do with tax benefits. As a charity (a §501(c)(3) organization is a charity in the legal sense) an amateur sports club is (a) exempt from income tax on membership dues, related business activities and investment income, and (b) exempt from paying sales taxes on purchases in many states. These tax benefits are often a compelling reason why an amateur sports club should make application for §501(c)(3) status.

But there is another reason, namely, that charitable sports organizations are qualified to receive foundation grant and corporate sponsorship money, and to receive public donations which are tax deductible.

Today, as never before, amateur sports clubs are springing up in increasing numbers in every state. Young people and their parents are turned on to sports for competition, recreation, and training for possible collegiate scholarships and/or professional status. But, uniforms, equipment, facilities, arenas, playing fields, courts and coaches cost money, and the costs are rising every season.

Where can amateur sports clubs get the money to provide first class uniforms, equipment, facilities, etc., to offer young athletes an opportunity to be the best they can be in their chosen sport? Attracting funds from people other than club members is no longer a luxury, but often a necessity.

The answer is to provide incentives for people to give. Individuals, professionals, foundations, and corporations are the logical donors - so give them an incentive to donate to or sponsor your club. Give them a charitable deduction - a powerful incentive to any prospective donor, which means your amateur sports club must be qualified as a charitable Internal Revenue Code §501(c)(3) organization. And foundations, although they do not usually need a tax deduction, often must restrict their grant recipients to 501(c)(3) organizations.

We have helped many nonprofit organizations become recognized as tax-exempt organizations, and are recognized as experts in qualifying amateur sports clubs as §501(c)(3) organizations. Our clients range from small volunteer organizations to large nationally prominent amateur sports clubs. Contact us by telephone, mail, facsimile, or email.