"Nonprofit Local Associations
Those that Use the Term “NonProfit”

(The term does not apply to some local associations)

There are only two (2) local sports officials association that I know of, without any reservation authorized to use the term “nonprofit”. When they say they are "nonprofit", its TRUE. Both of these associations comply with federal and state laws. They report their gross receipts on Form 990 and issue Form 1099 to members. Its not known if they submit Form W-9 to their contracting clients, but I am sure they do. Thats they have each member complete and sign a Form W-9. Bottom line is, those local associations exhibit the highest degree of integrity, honesty and trust, the public entrusted them with. Recommend both use the term "Board of Trustees" versus the hammer and sickle board of directors. My plate cap off to those "2" for being a true legal “nonprofit” business entity.

“We are not that type of nonprofit”. You don't say. Well, if you are not a “nonprofit”, in accordance with the IRS publications, you are a “for-profit” local association, a private organization generating taxable income via an unreportable means. And the IRS does not take kindly to a local association not fullfilling its tax reporting obligation on gross receipts amounting to 5 times, 10 times or 20 times more than $5000 per year.

There are local associations who meet the IRS Gross Receipt Test threshold by collection registration fees and dues along. Then some take 2 or 3 1099 contracting services invoices to go over the $5000 mark. Collectively, local associations gross receipt from schools ranges from $3000 to $150,000+. Georgia high schools spends "8 million dollars" plus per school year on athletics and activities.

So for the years 2007, 2008, 2009, and 2010, a local association or associations can accumulated a tax liability at 28 percent per year, plus penalties and fines.

So what are local associations tax liabilities for years 2007 through 2010? How much does each member owe?    Click >>>>> Association Tax Liability Test .  This a spreadsheet for download and/or open in your Open Office Suite. You are free to work the numbers.

Note: We begin with the year 2007, its the year the Pension Protection Act of 2006 took effect. The law increased the responsibilities and powers of the Internal Revenue Service. Obligated state issued incorporated and unincorporated "nonprofits" to report gross receipts.

I urge all local association, involved in high school and recreational sports...Get on track and do the right thing. The year 2012 will be upon us before we know it.


Whereby one day and on that day, the governing body can truthful say, "We are a "nonprofit" local association.