Hi Carol,

We have been involved in this basketball organization for 6 years and it has been organized for 11 years.  I would say we are a medium sized group with a cash flow of $5,000 give or take depending on the year.  We currently have less than $2,000 in the bank as we ended this season and prepare for the next.  It has been operated without any tax reporting and a little less than desired accounting practices.  I am not an accountant, but have business accounting experience, and I see where we need to improve. We do not have an EIN of our own, but we do have a bank account; at the moment, 2 bank accounts actually. 

 

My question:  I understand we need our own EIN and begin issuing 1099s to our referees.  Do we need 501c status ONLY if we are seeking that type of fund raising with companies that require it?  Or can we continue to operate without 501c, but just need to implement better tax reporting practices? 

 

If we do decide to pursue the 501c, are you familiar with Indiana laws that we could secure your services if needed?

 

Thank you for your assistance.

 

Blessings,
Shawna

Do we need 501c status ONLY if we are seeking that type of fund raising with companies that require it?

can we continue to operate without 501c, but just need to implement better tax reporting practices? 

Carol L. Topp, CPA