501c3 Approval

Treats from Oz

Happy holidays, all --

I'm very pleased to announce that the USAFL has obtained a favorable ruling form the IRS concerning 501c3 status...that is, we got it!

As an aside to everyone, while I'm thoroughly pleased that the IRS found in our favor (and not so surprised, either), I am shocked it came so quickly to a favorable ending. My experience in Boston attempting to obtain a favorable ruling was both far longer and less positive.

As many of you already know, the opportunity for member clubs in good standing to plug in to this through the group exemption is now a reality.

Stay tuned for more details on this -- I am working with attorney Ron Christian to set up the appropriate mechanism for clubs interested in taking advantage of this. The short version, is that clubs will need to make an application, so to speak, to the USAFL to gain the exemption. This application is a foregone conclusion -- your club will get it, but we'll need some information before we make it official, and Ron is putting together the questionnaire for this process. There is a cost involved, $1,000 for the initial exemption, and $500 a year for maintenance. Please know this is not money for the league, this is the fee to be paid to our law firm. As well, please know that Ryan Richardson and I are looking at ways to assist clubs in meeting the start up costs. The goal is for any club desiring the exemption will be able to make use of it.

Please know, this won't be for all clubs: everyone will get to make up their own mind as to whether this status makes sense for them. There will be obvious advantages (for fundraising and exemption from all taxes), but there are responsibilities, as well (VERY accurate and ongoing financial record keeping, the application and maintenance fees, for example).

For some clubs this will be a real advantage. Others may not be so interested. Others may wish to pursue their own 501c3 status, as Nashville has, or an alternate 501c status, as Baltimore-Washington has. There is no right answer so far as I'm concerned, just what makes sense to you and your club.

For now, let me know over the next several weeks if you have an interest in filing for group exemption with the league. That won't commit you to an unalterable course of action, just will give me an idea of who is interested.

Of course, if you have any questions, please contact me.

Enjoy the holidays!

Jon Lenicheck

President

USAFL




- Jon Lenicheck
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