Parents Team Sponsorship

[Josette]

Hi Parents,

Has anyone taken initiative to seek local sponsorship for their gymnast's team?

Is it a good idea to approach team coach about me talking to business on their behalf with a goal the team leos, warm ups or other team supplies can be purchased, hopefully lightening the load for parents?

Is this a good idea? Has anyone had experiences or thoughts to share?

 

[Dahlialover]

Unless your gym is a nonprofit (e.g. YMCA) , you would have to have a registered 501c3 booster club in order to legally accept donations or sponsorships. Business cannot “donate” to individuals or other businesses.

 

[Josette]

I was

Unless your gym is a nonprofit (e.g. YMCA) , you would have to have a registered 501c3 booster club in order to legally accept donations or sponsorships. Business cannot “donate” to individuals or other businesses.

Thinking along thr lines of team sports. How youth football often get sponsored. Some teams I know are independent from the Y and participate in xyz league.

Thanks for the line of thought. I'll definitely look into that more.

 

[Dahlialover]

I was

Thinking along thr lines of team sports. How youth football often get sponsored. Some teams I know are independent from the Y and participate in xyz league.

Thanks for the line of thought. I'll definitely look into that more.

Most youth sports leagues are nonprofit organizations. Private gyms are for-profit businesses. It’s a very different situation legally.

 

[raenndrops]

Most youth sports leagues are nonprofit organizations. Private gyms are for-profit businesses. It’s a very different situation legally.

Couldn't they still offer to advertise the businesses (like in their programs and with logos around the gym) in exchange for $$$?

 

[GymnastMomX2]

Yes, our booster club(a 501c3 non profit) handles this. We usually get a couple sponsors each season that give cash, and lots donations for either fun treats for the girls or things we can raffle off. We are a completely separate entity from the gym itself and all funds raised are shared equally among all team members.

 

[Dahlialover]

Couldn't they still offer to advertise the businesses (like in their programs and with logos around the gym) in exchange for $$$?

Yes, your gym could go into the ad business and the revenue generated would be taxable income for gym. There would be no reason for them to pass on their earnings to their customers, especially since running an ad business takes time and resources.

 

[raenndrops]

Yes, your gym could go into the ad business and the revenue generated would be taxable income for gym. There would be no reason for them to pass on their earnings to their customers, especially since running an ad business takes time and resources.

I wasn't thinking an "ad business" ... more of putting a business card in home meet programs and having a logo on the wall in the gym or be listed as a Platinum, Gold, Silver, or Bronze Level Sponsor.
It's stuff I have seen at open gyms I used to take the girls to (and have seen in programs).

 

[Dahlialover]

If a business entity provides a service in exchange for compensation, then that exchange is a business transaction. The money they receive for the service is income and they must pay taxes on that income.

You cannot legally raise money for your team and funnel it through your gym without the gym having to pay taxes on it. That’s why teams form 501c3 booster clubs.

 

[GymnastMomX2]

I wasn't thinking an "ad business" ... more of putting a business card in home meet programs and having a logo on the wall in the gym or be listed as a Platinum, Gold, Silver, or Bronze Level Sponsor.
It's stuff I have seen at open gyms I used to take the girls to (and have seen in programs).

This is similar to what we offer, but it’s all done through the booster club. Likely what you’ve seen is all done through a non profit.