What do we need to do before accepting donations?
March 5, 2003
Date: Sun, 23 Feb 2003
My softball team is trying to get sponsorship from businesses in our area. We will be starting an account at the local band and we are a non-profit. Will we need a tax I.D. number, etc.? Also, is there anything else that I should be aware of in taking on this task?
Thanks for your time,
Date: 28 Feb 2003
This isn't really a short answer question. Since you are trying to get sponsorships, it may be you should set up a formal organization for your team, including filing for non-profit status - possibly even as a charity. As such, you will need an employer identification number. (The bank will ask for one to open the account.) I really think you should consult with an attorney who is familiar with these issues to discuss your alternatives.
For answers to new questions, subscribe to our newsletter, Michael Gray, CPA's Tax & Business Insight by filling out the form below.
Home Newsletter Archive Introducing Michael Gray, CPA Articles Tax FAQ Need Help? Other Links