A non-profit is a company that has filed corporate documents in its home state. A 501(c)(3) is a form of non-profit that is recognized by the federal government and can offer tax deductions and distribute money to fulfill its tax-exempt purpose. Most states require non-profits be 501(c)(3)s, but not all.
If you fundraise (individually or as a group, whether in-kind donations, cash donations, or work like a car wash), you must pay taxes on your income unless you are a non-profit or a 501(c)(3).
If you receive a cash donation to your child (dry cleaners buys an ad in the meet program) and keep the money, then you have violated NCAA amateurism rules. If you work as a gymnast and keep the money, you may not have violated amateurism rules if you follow the very, very recent case law about video games and the NCAA's treatment of Mo'ne Davis.
The benefit of a 501(c)(3) is that 1) donors get tax deductions and 2) cash donations may be allocated to individuals or groups without violating NCAA amateurism rules.
The benefit of a non-profit is that 1) taxes are low or non-existent and 2) there is a corporate shield for the officers of the entity working on the fundraising (for instance, the organizers are not personally liable if a child is injured at the car wash).
The NCAA has amateurism regulations which are available online. Drilling down into specific situations would require a review of case law interpreting such rules. The research department of the NCAA should be able to provide their amateurism rules. It is a different phone number than the regular 800 line.
If you fundraise (individually or as a group, whether in-kind donations, cash donations, or work like a car wash), you must pay taxes on your income unless you are a non-profit or a 501(c)(3).
If you receive a cash donation to your child (dry cleaners buys an ad in the meet program) and keep the money, then you have violated NCAA amateurism rules. If you work as a gymnast and keep the money, you may not have violated amateurism rules if you follow the very, very recent case law about video games and the NCAA's treatment of Mo'ne Davis.
The benefit of a 501(c)(3) is that 1) donors get tax deductions and 2) cash donations may be allocated to individuals or groups without violating NCAA amateurism rules.
The benefit of a non-profit is that 1) taxes are low or non-existent and 2) there is a corporate shield for the officers of the entity working on the fundraising (for instance, the organizers are not personally liable if a child is injured at the car wash).
The NCAA has amateurism regulations which are available online. Drilling down into specific situations would require a review of case law interpreting such rules. The research department of the NCAA should be able to provide their amateurism rules. It is a different phone number than the regular 800 line.
