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Mark D
Mark D, Enrolled Agent
Category: Tax
Satisfied Customers: 1304
Experience:  MBA, EA, Specializing in Business and Individual Tax Returns and Issues
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We formed a youth boys basketball team. My

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We formed a youth boys'' basketball team. My husband pays for everything (tournament fees, gym time, uniforms, etc). Kids don't have to purchase anything except their shoes. I would like to raise funds to offset our expenses. Do I have to file for tax exempt (501(c)(3)) status to raise money for the team?
Customer

You do not have to file for 501(c)3 status to raise money, however donors may not be able to deduct their contributions to the organization without this status. Also, the are other chapters under which the organization may be classified as an exempt organization, but still owe taxes. Your best option to raise more money and avoid taxes for this great cause would be to apply for 501(c)3 status.

Regards,

Mark D

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