From:  Tim
Date:  Sun, 23 Feb 2003

Mr Gray,

My softball team is trying to get sponsorship from businesses in our area. We will be starting an account at the local band and we are a non-profit. Will we need a tax I.D. number, etc.? Also, is there anything else that I should be aware of in taking on this task?

Thanks for your time,
Tim

Answer

Date:  28 Feb 2003

Hello Tim,

This isn't really a short answer question. Since you are trying to get sponsorships, it may be you should set up a formal organization for your team, including filing for non-profit status - possibly even as a charity. As such, you will need an employer identification number. (The bank will ask for one to open the account.) I really think you should consult with an attorney who is familiar with these issues to discuss your alternatives.

Good luck!
Mike Gray

For answers to new questions, subscribe to our newsletter, Michael Gray, CPA's Tax & Business Insight by filling out the form below.

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained on this website was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.