Post by cg on Apr 16, 2012 16:23:52 GMT -6
As requested by one of the member teams, here is a post outlining the terms as discussed at the 2012 National Tournament.
PROPOSAL FOR ESTABLISHING THE NCDA AS A LEGALLY RECOGNIZED ENTITY
Purpose: Establish the National College Dodgeball Association as a non-profit organization in such a manner as to allow for the contracting of sponsorships, broadcasting, or other thing of interest, and to allow for the greater recognition of students’ efforts to further dodgeball by those outside the dodgeball community.
As proposed at the annual meeting held at the 2012 National Tournament, the plan of action would consist of two stages:
1. Organize the NCDA as a non-profit corporation.
Working with the teams’ representatives, counsel would draft articles of organization and bylaws that memorialize in a formal document the manner in which the NCDA has operated to this point, ie the goal of organization is not to change the NCDA but to reflect how the NCDA works. Special attention would be paid to the sport club and university policies submitted by the various teams to ensure that the project would not result in the exclusion of any team from their continued participation in the NCDA. Upon filing the articles of organization, the NCDA would come into legal existence and be able to enter into agreements with various entities without having to explain how the NCDA is just a name and that there is no party on the other side of the bargaining table.
2. Apply for 501(c) status with the internal revenue service.
Upon becoming a non-profit corporation, the NCDA would be exempt from most state taxes; however, in order to be exempt from federal taxes (and be able to offer the all-important tax write-off for donations), the NCDA must apply for a federal exemption. Working with the teams’ representatives, counsel would compile all necessary application materials and complete all related procedures (eg, filing for a federal tax ID number). The two designations that appear to apply are 501(c)(3), Religious, Educational, Charitable, Scientific, Literary, Testing for Public Safety, to Foster National or International Amateur Sports Competition, or Prevention of Cruelty to Children or Animals Organizations, and 501(c)(7), Social and Recreational Clubs. Upon receiving such an exemption, the NCDA would be eligible to apply for and possibly receive federal grant money.
Additional Benefit: If accomplished in the general manner envisioned by counsel, the NCDA would consist of a Board of Directors, with the Directors being the representatives of the various teams as has been traditionally done by the teams’ captains and the Captains’ Meeting. While “dodgeball treasurer” may require significant explanation at a job interview, “Board member, 501(c)(3) non-profit” does not, despite there being no real-world difference between one or the other. This name recognition will be an added benefit to those members graduating and entering the job market, as such a distinction would stand out on a job application.
Cost: Flat fee of $1,500.00. This includes the cost of all necessary filings at the state and federal levels. Counsel would begin preparation of the articles of organization upon receipt of 1/3 or $500.00, and begin the application for tax exempt status upon receipt of the remaining $1,000.00 and upon having organized the NCDA as a non-profit corporation.
Suggestion regarding payment: It was brought up at the 2012 National Tournament that some teams have access to funds for a limited amount of time that they must either expend or forfeit back to the university. Provided it does not impact these teams’ funding allocations going forward, it is the suggestion of counsel that these teams with “use it or lose it” funds expend the full amount of those funds, thereby lowering the cost to the remaining member teams.
Note: Counsel is not guaranteeing the NCDA would actually receive federal tax-exempt status, as that is a decision left to the Internal Revenue Service, nor is counsel making guarantees as to the future receipt of sponsorships or grants. As stated at the 2012 National Tournament, the application process, if successful, would “open the floodgates as to the possibilities of sponsorships and grants as opposed to just getting the occasional group discount.”
PROPOSAL FOR ESTABLISHING THE NCDA AS A LEGALLY RECOGNIZED ENTITY
Purpose: Establish the National College Dodgeball Association as a non-profit organization in such a manner as to allow for the contracting of sponsorships, broadcasting, or other thing of interest, and to allow for the greater recognition of students’ efforts to further dodgeball by those outside the dodgeball community.
As proposed at the annual meeting held at the 2012 National Tournament, the plan of action would consist of two stages:
1. Organize the NCDA as a non-profit corporation.
Working with the teams’ representatives, counsel would draft articles of organization and bylaws that memorialize in a formal document the manner in which the NCDA has operated to this point, ie the goal of organization is not to change the NCDA but to reflect how the NCDA works. Special attention would be paid to the sport club and university policies submitted by the various teams to ensure that the project would not result in the exclusion of any team from their continued participation in the NCDA. Upon filing the articles of organization, the NCDA would come into legal existence and be able to enter into agreements with various entities without having to explain how the NCDA is just a name and that there is no party on the other side of the bargaining table.
2. Apply for 501(c) status with the internal revenue service.
Upon becoming a non-profit corporation, the NCDA would be exempt from most state taxes; however, in order to be exempt from federal taxes (and be able to offer the all-important tax write-off for donations), the NCDA must apply for a federal exemption. Working with the teams’ representatives, counsel would compile all necessary application materials and complete all related procedures (eg, filing for a federal tax ID number). The two designations that appear to apply are 501(c)(3), Religious, Educational, Charitable, Scientific, Literary, Testing for Public Safety, to Foster National or International Amateur Sports Competition, or Prevention of Cruelty to Children or Animals Organizations, and 501(c)(7), Social and Recreational Clubs. Upon receiving such an exemption, the NCDA would be eligible to apply for and possibly receive federal grant money.
Additional Benefit: If accomplished in the general manner envisioned by counsel, the NCDA would consist of a Board of Directors, with the Directors being the representatives of the various teams as has been traditionally done by the teams’ captains and the Captains’ Meeting. While “dodgeball treasurer” may require significant explanation at a job interview, “Board member, 501(c)(3) non-profit” does not, despite there being no real-world difference between one or the other. This name recognition will be an added benefit to those members graduating and entering the job market, as such a distinction would stand out on a job application.
Cost: Flat fee of $1,500.00. This includes the cost of all necessary filings at the state and federal levels. Counsel would begin preparation of the articles of organization upon receipt of 1/3 or $500.00, and begin the application for tax exempt status upon receipt of the remaining $1,000.00 and upon having organized the NCDA as a non-profit corporation.
Suggestion regarding payment: It was brought up at the 2012 National Tournament that some teams have access to funds for a limited amount of time that they must either expend or forfeit back to the university. Provided it does not impact these teams’ funding allocations going forward, it is the suggestion of counsel that these teams with “use it or lose it” funds expend the full amount of those funds, thereby lowering the cost to the remaining member teams.
Note: Counsel is not guaranteeing the NCDA would actually receive federal tax-exempt status, as that is a decision left to the Internal Revenue Service, nor is counsel making guarantees as to the future receipt of sponsorships or grants. As stated at the 2012 National Tournament, the application process, if successful, would “open the floodgates as to the possibilities of sponsorships and grants as opposed to just getting the occasional group discount.”