USA Not-for-profit?

[A Morse]

Hey everyone, I organize and coordinate an annual sporting event (lawn mower drag races) and raise money for it through gofundme, local sponsorships, etc. The event has been happening for 21 years now (Father's Day), this was my first year running it. I really need to establish an account specifically for the event that is not in my name. Is this a candidate for a not-for-profit? There is really no entity, business or anything really associated with it, it's just the event itself, but needs its own account for insurance, promo materials and such. Just don't know exactly how to handle it. Thanks in advance for your time!!

Andy

 

[BIG E]

You need to form a tax exempt entity for this activity.
It should be done through an attorney to set up the entity with the state's Department of State.
But that's not all.
Once set up, the entity needs to apply for an Employer Identification number with IRS and can
be done online through www.irs.gov - look for online version of Form SS-4.
But that's still not all.
In order to obtain a tax-exempt status from IRS, you will need to complete Form 1023
to set up a 501(c)(3) entity if applying as a charity - an organization that benefits the community for educational, religious,
scientific, and other designated purposes.
For all other tax exempt entity purposes (a different section than 501(c)(3) - you need to complete Form 1024.

Each of these forms can be obtained online from www.irs.gov

Annually the organization will need to file a version of Form 990 - whether it's 990, 990-EZ or 990-N.
That's dependent upon how much gross proceeds the organization receives in a year.
In addition to that, you need to check with the Department of Charities in your state (usually part of
the Attorney General's office) - to determine what the filing requirements are for your state.

 

[A Morse]

You need to form a tax exempt entity for this activity.
It should be done through an attorney to set up the entity with the state's Department of State.
But that's not all.
Once set up, the entity needs to apply for an Employer Identification number with IRS and can
be done online through www.irs.gov - look for online version of Form SS-4.
But that's still not all.
In order to obtain a tax-exempt status from IRS, you will need to complete Form 1023
to set up a 501(c)(3) entity if applying as a charity - an organization that benefits the community for educational, religious,
scientific, and other designated purposes.
For all other tax exempt entity purposes (a different section than 501(c)(3) - you need to complete Form 1024.

Each of these forms can be obtained online from www.irs.gov

Annually the organization will need to file a version of Form 990 - whether it's 990, 990-EZ or 990-N.
That's dependent upon how much gross proceeds the organization receives in a year.
In addition to that, you need to check with the Department of Charities in your state (usually part of
the Attorney General's office) - to determine what the filing requirements are for your state.

Great advice, thanks a ton!

 

[DTA93433]

Make sure you Form 1023 includes proper "tax-exempt" language that is necessary for IRS approval. The last thing you want is for your application to be held up because it lacks this requirement.