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'Benevolence' |
Because of all the cutbacks in today's economy, many clubs and organizations are requesting sponsors to offset the pay-to-play sport programs.
People will be approached by clubs and boosters to donate money to help programs that have been cut or are in trouble financially.
If you are using your donation as a deduction at the end of your fiscal year, make sure your donation goes to an official 501-C nonprofit-approved group.
The government has made approximately 28 criteria to be a legal nonprofit group, at the cost of over $15,000. These obstacles make it so a lot of groups cannot afford this type of an expense to survive or even exist.
Also be aware of groups using someone else's nonprofit federal ID number. There
When your business is solicited for a donation, ask that organization for a 501-C certificate or their articles of incorporation. Without the official 501-C approval, some clubs will try to make a profit for their own pockets with your donation.
When there are no regulations, there can be misuse of funds. The 501-C nonprofit regulations require management to report activity to stay in business and remain legal.
The 501-C nonprofit also keeps the funds allocated for the purpose of the organization's expenses.
Walt Miller
Spotsylvania
The writer is president, All Sports Corp.
