What started as a typical high school reunion has snowballed into a fundraiser for our school. We are estimating a revenue of about $20k, with $15k for the party and $5k as a donation to the school. At this time, we have $600 in a PayPal account and no legal entity. We're still scrambling to get together $1200 for a deposit on our venue, so using that money for incorporation fees would be painful.
We are thinking this will be a one-time event, so there is no real desire to create an Alumni Association, but it's something we would grudgingly do. I just checked with a bank to find out about getting a separate checking account for the "club" and was told I needed an EIN, which makes me think the estimated $20k revenue would be be flagged by the IRS and that we might need to incorporate as a non-profit. Our revenue will come from ticket sales and donations from local businesses.
Can anyone tell me if we need to create a legal entity and what the quickest and gentlest way might be?
We are thinking this will be a one-time event, so there is no real desire to create an Alumni Association, but it's something we would grudgingly do. I just checked with a bank to find out about getting a separate checking account for the "club" and was told I needed an EIN, which makes me think the estimated $20k revenue would be be flagged by the IRS and that we might need to incorporate as a non-profit. Our revenue will come from ticket sales and donations from local businesses.
Can anyone tell me if we need to create a legal entity and what the quickest and gentlest way might be?