Can someone explain to me how a non profit organization works/runs? Can an organization/club still be in existance if they are not no profit? If they advertise that they are no profit but arent, is that illegal? My kids play on a club that I am startng to question their conduct............
I just find it odd that a club is claiming to be non profit, yet they arent, how is it posible to lose your non profit status? Where does all the "extra money" go? Is this information public? Alot of unanswered questions....
You should just ask your club to see where the money is going, any decent club would have no issue sharing it. These unanswered questions should easily be answered by your board. Again though, a non profit can still make plenty of profit, but if the club was ever dissolved, it would be dispersed back to its members
A non profit org needs to file IRS form 990. It is publicly available through the IRS search or through www.guidestar.com. If they aren't filing it is becasue they are hiding something. After 3 years of non-filing ... their tax exempt status is revoked, which means that they cannot give receipts for donations. Also they are responsible to pay taxes on net profits. Also on the IRS 990 form, it lists the board and if they are getting paid. It also lists what money goes out in general terms. I would not support a sports club that claims to be 501 c3 and does not file its tax forms.
Well the Sabatini Senators haven't filed a return since 2003 anad the Brason Blazers haven't filed since 2008. How can these organizations not file, continue to collect money and possibly scam the members? This is a shame, people work hard for their money and the fees keep going up every year. Every organization should file their returns and offer the IRS 990 Form along with a detailed spending report for the year. That way there are no questions.
Ask your organization for the forms and ledger reports .....it will keep everyone honest.
I went to the Grundy Senators website and they have a statement up there saying there was a lapse in filings with their previous treasurer and their accountant is working to get reinstated. Really? It goes on to say they have always operated with a zero budget? HOW? You can have one team with 12 players and another with 17. Do the ice slots they buy differ in price depending on the amount of players on each team? They have been claiming to be a non-profit club yet havent been doing the right since 2003? 9 YEARS of scamming its members! Ive heard that if anyone asked or mentioned finacial records to Mrs. Sabatini, you got 'blackballed", shunned, or whatever else you can think of. The attitude of "how dare you ask!" is very common there. Doesnt the Senators have elections every year? Dont they vote for board members each year like a normal non-profit organization does? Their treasurer should have been let go the first year they "forgot" to file with the IRS. What an embarasement they are to the DVHL and to youth hockey.
From the Senators website :
Monday, June 4
Due to a lapse in filings by our previous treasurer theSenator’s 501(3)c status was recently revoked. All of our tax filings arecurrently up to date and we are in the process of working with our accountantto file the proper paperwork with the IRS to have our status reinstated. We donot anticipate any issues with this process. This revocation does not changehow the Senators operate financially. The loss in the status only keeps us fromaccepting any donations to help operate the organization. All of our operatingfunds are used for hockey operations. We have always operated with a zeroprofit budget. If there are any questions regarding our finances pleaseemail your question to firstname.lastname@example.org
A couple of things come to mind. Elections are never announced. Must be closed only to the board members and they vote themselves back in. As far as the "previous treasurer", I call BS. It is the job of the board to make sure that the organization is in compliance, not just the treasurer. The treasurer has to get the forms done with the help of a qualified CPA and/or attorney. The board should and needs to review the documents. It is a system of checks and balances. Everyone on the board failed the organization in many ways. If they have nothing to hide, they should announce elections, hold general membership meetings and distribute the completed IRS forms and ledgers to back up their "claim" of a zero-profit budget. I have attached the Grundy Senators IRS Form 990 from 2003 - the ONLY year that is was filed with the IRS. This form was downloaded from the IRS website directly. In their Form 990 for 2003 ..... they had around $80,000.00 of net profit. I rounded for ease of math.
I believe that this will be one of those situations that get aired out on the local news when the numbers don't match up.
I was just emailed by a member here ... I am not going to name the member but post his/her email :
"Is it fair to point out one person, for what may have been overlooked by many of this club. Have you ever given your time to a club, set aside all the time needed to help with the kids program. Do you realy know what is involved in running a club, do you know the bills that have to be paid......"
My answer - ..... yes I have given time to a club. Years actually ..... to 6 clubs. I have held many different positions - Pres, VP, Tres and Sec. These 6 clubs have been spread around 4 states. Because of my work, my family had to relocate alot. Now that I have retired I get to watch my grandkids play hockey. It is the culture of youth hockey clubs that has put a burr in my butt.
I know the costs of running a non-prof youth sports organization. I know the time commitment as well. The problem is people do it to control things. People hold closed door meetings and keep the books closed because they want to control the money and organization. Open everything up - meetings, books, etc .... keep the membership informed. When this happens all the questions about fraud and corruption go out the window. If you want your organization to flourish, then get new blood .... give up your tight grip of control and truely do it for the kids.
So again I state .... everyone on the board is just as responsible as the "previous Treasurer" ... they let it happen and they continue to hide what ever misdoings were done.
Why all the hate? There is no hate. Alot of people question how a "non-profit" club can run with only 3 board members; no elections since they became a hockey club. Then claim they always have a zero budget at the end of each season? Thats a good one! To mention that their treassurer had a "lapse' in filings with the IRS is laughable. Everyone that knows the Senators knows enough that the Sabatinis run the show. For them to blame the treassurer alone is comical. Everybody knows Mrs. Sabatini is a control freak. I hear they are changing their jerseys from the Senators to the Sabatinis.
All that talk about getting everything done and fixed. This organization is still 10 years behind on their tax filings ..... but they keep bringing in money and sandbagging every division they can. What a classless club