Legal Question in Tax Law in Pennsylvania

I have recently become aware of a situation that I do not know the answers to. For 3 yrs my kids have been part of a youth football team in PA where we live. There has always been questions among parents about where fundraising money for the team is going. The team always seems to be in the red.But last year, my husband and I organized a sportsman's bash fundraiser to help earn money for the team. We basically organized the fundraiser from start to finish but the head coach of the team opened the bank account for the event. There are no officers of board members on the team. The head coach, his father, and brother are the only ones on the account, no expense info or any other financial information is ever given to the team parents or other coaches. This year my husband and I are again planning this fundraiser. but I have recently come to find out that we are not tax exempt or even registered as a non profit organization. I questioned on how the team does not have to pay taxes and he says that "they" just know the team is non profit. This all concerns me greatly as I do not know all the laws and regulations surrounding this sitiuation and my husband and my name is tied to this sportsman's bash. and now there may be a question on whether the coach has taken money out of the event account. I have made deposits into the account but only the coach's name is on the account so I do not have access to how much money is there. the main connection my husband and i have is that our name is on the donation request letters that have been given to local businesses. I know this sounds a bit confusing but my main question is what are the laws surrounding a youth team that is not registered as non profit and seems to not pay taxes either, and i feel safe about any money that may or may not be there because we do not have access to the account but what about the fact that my husband and i are running the event and now i am finding that it may not be legite?


Asked on 10/06/12, 6:17 pm

1 Answer from Attorneys
Scott Polsky

This is too much to answer in an email. I recommend that you speak with an attorney as soon as possible to protect yourselves. If your organization is not registered as a nonprofit, there will most likely be back taxes to pay. It also sounds like there may be some criminal activity that may need police involvement. If you would like to contact me directly, please feel free to call me at 215-367-5110.

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Answered on 10/11/12, 8:31 am


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