How do I establish an account for a small, informal organization?
August 20, 2013 8:37 AM Subscribe
I'm taking over the reins of a small, amateur sports team. Our budget is under $5,000/year, mostly donations solicited from sponsors. How do I manage this money?
posted by entropone to work & money (11 answers total)
The outgoing manager of the team had a federal EIN so that he could establish a bank account as "[his name] doing business as [our team name]" which let him receive checks made out to the team name. He paid the taxes on the money that was coming in, which was pretty marginal and didn't really matter since apparently he got a pretty big refund because of something about interest on his house. His attitude about this whole approach is, "I have no idea if this was the right way or best way to do this or not." A couple of sponsors issued him 1099s for the payments to the team.
I could just set up a separated, personal account in my name to manage these expenses, but I wouldn't want any of the other members to feel like I've got unilateral control over the finances or have the opportunity or temptation to embezzle - even with the small amounts at stake. And I'm not sure if asking sponsors to write out a check to me would dissuade them.
So - any ideas? What other things do I need to consider or keep in mind?