Author Topic: Club Status (informal or formal non-profit) and Banking  (Read 754 times)

Offline piratefan

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Club Status (informal or formal non-profit) and Banking
« on: September 24, 2015, 08:40:04 PM »
My club is about to start our first year in October. We are trying to figure out whether to formally organize as a non-profit, and how to handle finances. I work in insurance, and I feel like we need insurance to protect the members, which requires money. I also feel like we need money to do fun stuff - club shirts, brewery tours, an eventual barrel?!?!?!?! In order to handle the money we need a bank account, but I am not sure if we need to be a registered non-profit organization in NC to have one.

What have your clubs done regarding this?

Online Stevie

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Re: Club Status (informal or formal non-profit) and Banking
« Reply #1 on: September 24, 2015, 09:01:45 PM »
I don't think you need to be a non-profit, but you will need to incorporate to have an account under the club and not a specific member.

Offline bengelbrau

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Re: Club Status (informal or formal non-profit) and Banking
« Reply #2 on: September 24, 2015, 09:33:04 PM »
Somewhere on the AHA website you can find some information on the insurance available to clubs.

Offline wv_brewer

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Re: Club Status (informal or formal non-profit) and Banking
« Reply #3 on: September 25, 2015, 04:20:34 AM »
Call the bank.  You do not need to form a Corp or LLC but you will need to get an FEIN which can be done online.  Our bank required an FEIN, and a letter on our letterhead stating who from our club would have signature authority.  Much less complicated than I expected.

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Online mabrungard

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Re: Club Status (informal or formal non-profit) and Banking
« Reply #4 on: September 25, 2015, 05:44:49 AM »
Unless your club is generating significant income, there is no need to go through the time and expense of getting registered as a non-profit entity.

With respect to incorporating, yes you need to. Otherwise all of your club members are equally liable for any loss the club is cited for. Incorporation protects the majority of members, but places a bit more responsibility on club officers. Having insurance is an important need and AHA now has an option for clubs.
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Offline piratefan

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Re: Club Status (informal or formal non-profit) and Banking
« Reply #5 on: September 25, 2015, 04:20:47 PM »
Unless your club is generating significant income, there is no need to go through the time and expense of getting registered as a non-profit entity.

With respect to incorporating, yes you need to. Otherwise all of your club members are equally liable for any loss the club is cited for. Incorporation protects the majority of members, but places a bit more responsibility on club officers. Having insurance is an important need and AHA now has an option for clubs.

Thank you for this. I have been in touch with the folks selling the AHA-backed insurance. I have also convinced my board that forming and LLC may be a good option.

Thank you all for the feedback!