Went to a club meeting the other night for a monthly meeting. This club is a well known club throughout the nation with local clubs all over. I would like to refrain from mentioning the actual name due to sensitivity issues. Anyways, we find out that the local club had lost its 501 c 3 status approximately five years ago due to not filing tax documents for the last 11 yrs. This club runs all sporting activites for the city's youth. One of the board members had their cpa do some checking and best she can figure we would have fines in the millions of dollars. I have only been a member of this organization for 2 years so this news comes as a great surprise. My instinct is to run for the hills but that is not so easy for me.
I am an officer of our town's baseball association BOD. We use property owned by the Club mentioned above to run our league. They own the fields. We have our own unique name and seperate banking accounts but we have been operating under the umbrella of the "club's" 501 c until we secured our own 501 c 3. I joined the club to protect the interests of our baseball program because the "club" governs over our board to some degree. Our baseball program is having a meeting this week to consider disbanding our baseball board and turning full control back to the club. Too many people have too much to lose.
My legal questions are; Can we (Baseball association and/or "Club") be held personally liable for these fines. If these fines and penalties do exsist is there a legal way to fix this within the means of a volunteer organization?? What would you do? My instincts are to resign from both but I, and others, do not want to further fail the youth of our town. The IRS has yet to contact anyone, to my knowledge, about this issue.
I am an officer of our town's baseball association BOD. We use property owned by the Club mentioned above to run our league. They own the fields. We have our own unique name and seperate banking accounts but we have been operating under the umbrella of the "club's" 501 c until we secured our own 501 c 3. I joined the club to protect the interests of our baseball program because the "club" governs over our board to some degree. Our baseball program is having a meeting this week to consider disbanding our baseball board and turning full control back to the club. Too many people have too much to lose.
My legal questions are; Can we (Baseball association and/or "Club") be held personally liable for these fines. If these fines and penalties do exsist is there a legal way to fix this within the means of a volunteer organization?? What would you do? My instincts are to resign from both but I, and others, do not want to further fail the youth of our town. The IRS has yet to contact anyone, to my knowledge, about this issue.
