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Doing Business Under Existing 501(c)(3), Soccer Club And Academy

Business Law discussions

Doing Business Under Existing 501(c)(3), Soccer Club And Academy

Postby Nevins » Tue Jun 07, 2016 3:06 pm

We have a 501(c)(3) NPO for our club soccer team of 5 years but currently we have been offered to affiliate to a professional soccer team and become a soccer academy for them. We would still be a NPO. Obviously we would have to change our name because of our affiliation to this professional soccer team. The question is it possible to go under the current NPO we have and use a different name?  I am thinking we would have to file a Doing Business As?

ANSWER: To change your name you would need to amend your Articles of Incorporation with your State and then advise the IRS of the name change.

Your exemption application may not have included such purposes as you are anticipating in the near future and

projected income and expenditures.  Exempt organizations' determination

letters state that if its mode of operation changes it must notify

the IRS of the change so that the IRS can determine the effect on

its exempt status. Your organization certainly can inform the IRS

that it wants to engage in those new activities and see what reply

comes. You can see that in the sample determination letter at:

www.mcsb.us/Documents/IRS%20501c3%20Approval%200001.pdf

on page three under the heading "Notify Us On These Matters" Harvey Mechanic Attorney At Law [email protected]

---------- FOLLOW-UP ----------

Thank you for the response.  But what do we have to do if we want to keep both NPO?  Couldn't we go under the "umbrella" of the first NPO?  Incorporate?  Thanks
Nevins
 
Posts: 42
Joined: Wed Apr 16, 2014 6:24 am

Doing Business Under Existing 501(c)(3), Soccer Club And Academy

Postby oscar38 » Tue Jun 07, 2016 6:26 pm

We have a 501(c)(3) NPO for our club soccer team of 5 years but currently we have been offered to affiliate to a professional soccer team and become a soccer academy for them. We would still be a NPO. Obviously we would have to change our name because of our affiliation to this professional soccer team. The question is it possible to go under the current NPO we have and use a different name?  I am thinking we would have to file a Doing Business As?

ANSWER: To change your name you would need to amend your Articles of Incorporation with your State and then advise the IRS of the name change.

Your exemption application may not have included such purposes as you are anticipating in the near future and

projected income and expenditures.  Exempt organizations' determination

letters state that if its mode of operation changes it must notify

the IRS of the change so that the IRS can determine the effect on

its exempt status. Your organization certainly can inform the IRS

that it wants to engage in those new activities and see what reply

comes. You can see that in the sample determination letter at:

www.mcsb.us/Documents/IRS%20501c3%20Approval%200001.pdf

on page three under the heading "Notify Us On These Matters" Harvey Mechanic Attorney At Law [email protected]

---------- FOLLOW-UP ----------

Thank you for the response.  But what do we have to do if we want to keep both NPO?  Couldn't we go under the "umbrella" of the first NPO?  Incorporate?  Thanks
oscar38
 
Posts: 47
Joined: Wed May 22, 2013 11:22 am

Doing Business Under Existing 501(c)(3), Soccer Club And Academy

Postby Mynogan » Wed Jun 08, 2016 2:17 pm

When you refer to umbrella the only concept in 501(c)(3) organization law is "group exemption" which depends upon the facts of the case. Group Exemption is discussed starting on the right column of page

6 of IRS Publication 557

www.irs.gov/pub/irs-pdf/p557.pdf

and in length at:

www.irs.gov/pub/irs-tege/p4573.pdf

Otherwise, one organization could distribute its assets to the other 501(c)(3) organization and dissolve.  All of this, of course, depends upon whether the activities will still be that of an exempt 501(c)(3) organization. I don't know what you mean by "Incorporate?" in your question as it appeared that you were referring to two existing entities that are already incorporated.  If that is the case, my answer, as above would still apply.

In order to deal with the specific facts of your case I would need to spend a substantial amount of time reviewing specific documents and financial projections and records to really answer your questions and that would be beyond the scope of this free forum. If you want to work with me on a fee basis, please contact me directly to my email address below. Harvey Mechanic Attorney At Law [email protected]
Mynogan
 
Posts: 54
Joined: Thu Jan 02, 2014 12:01 pm


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