Did You Know The NFL Is Classified As A 501(c) Non-Profit Organization?

[houstonwhodat]

Crazy eh?

"You may not know it, but the National Football League is a nonprofit organization. It may seem absurd that a collection of teams that generated at least $9 billion in revenue last season would be given tax-exempt status, but the NFL is technically classified as a 501(c)6 organization."

"Here’s the meat of the IRS’ explanation of how these tax-exempt leagues are supposed to work:

A business league is an association of persons having some common business interest, the purpose of which is to promote such common interest and not to engage in a regular business of a kind ordinarily carried on for profit. Trade associations and professional associations are business leagues. To be exempt, a business league’s activities must be devoted to improving business conditions of one or more lines of business as distinguished from performing particular services for individual persons. No part of a business league’s net earnings may inure to the benefit of any private shareholder or individual and it may not be organized for profit to engage in an activity ordinarily carried on for profit (even if the business is operated on a cooperative basis or produces only enough income to be self-sustaining). The term line of business generally refers either to an entire industry or to all components of an industry within a geographic area. It does not include a group composed of businesses that market a particular brand within an industry."


http://articles.businessinsider.com/...rust-exemption

[Valiant]

Originally Posted by houstonwhodat

I thought only churches and shit were non-profit.

Most churches should not be either.

[Hydrae]

Until their IPO in 2007, Visa was a non-profit. Made for some sweet year-end bonuses when they had to dump the last of what would otherwise have been profits.

[DaFace]

I'll repost my response from the last time someone brought this up.

http://www.chiefsplanet.com/BB/showthread.php?t=268065

Originally Posted by DaFace

People always have trouble distinguishing between "not for profit" and "don't make any money." Nonprofit organizations can make millions of dollars, but they just can't pay whatever they make out to shareholders or owners in any way. They can only pay expenses and salaries.

In this case, the NFL doesn't have shareholders, and all they do is pay the salaries of their staff (which are obviously quite high for high-ranking guys like Goodell). Also, keep in mind that the NFL doesn't make nearly as much money as the teams themselves do.

[Rausch]

Originally Posted by Demonpenz

Football is way better than church

...

[BlackHelicopters]

Holy crap.

[Cephalic Trauma]

Originally Posted by Rausch

...

[Cephalic Trauma]

Btw, obligatory we landed on the moon.

[HMc]

What a dumb article. The individual teams pay taxes on the 9 billion (well, on profits). The NFL is essentially a-not-for-profit entity set up to handle shared administrative and management tasks anyway. X dollars come in, and X dollars go out. They wouldn't be paying tax even without the exemption.

The main complaint in the article is that the ~6 million each team pays to the NFL in membership is tax deductable. Again, as a legitimate business cost it would be friggen tax deductable anyway (you would need a different structure though I guess).

[WhiteWhale]

Originally Posted by houstonwhodat

And Goodell made 29.5 million in 2011.

I didn't know you could make that much money being a non-profit.

Hospitals do it all the time... well... probably not that much.

They do pay their heads obscene amounts of money and call themselves non profit though.

[DaFace]

Originally Posted by WhiteWhale

Hospitals do it all the time... well... probably not that much.

They do pay their heads obscene amounts of money and call themselves non profit though.

As my post above mentioned, "non-profit" doesn't mean "makes no money." Employees of nonprofit organizations have to be paid competitively or the only people they'd ever be able to hire would be shitty at their jobs. Employees of NPO's pay taxes like anyone else.

[Bump]

that's great for America

/donger

[-King-]

Originally Posted by Bump

that's great for America

/donger

Is it bad for America?

[Bump]

It's pretty clear in this country that if you can generate x amount of money, then you don't have to pay any taxes.

[Cephalic Trauma]

Originally Posted by Bump

It's pretty clear in this country that if you can generate x amount of money, then you don't have to pay any taxes.

You are such a disgruntled little tweeker.

You contribute nothing to society, yet you bitch nonstop.

[Bump]

Originally Posted by -King-

Is it bad for America?

that every corporation, every mega rich person doesn't have to pay any taxes at all? Ya, it's bad for America regardless of what your favorite (R) politician told you after he gave you an amen and mentioned jesus.