What do we need to do before accepting donations?

March 5, 2003

From:  Tim
Date:  Sun, 23 Feb 2003

Mr Gray,

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,
Tim

Answer

Date:  28 Feb 2003

Hello Tim,

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.

Good luck!
Mike Gray

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