California District 24: ROLE OF THE SECRETARY and TREASURER

ROLE OF THE SECRETARY AND THE TREASURER

The Secretary maintains a register of members and directors, records the minutes of meetings, is responsible for sending out  timely notices of meetings, issues membership cards and maintains a record of the league's activities.

PLEASE CLICK ON 'HANDOUTS' BELOW FOR 'League Election Procedures'

The Treasurer signs checks co-signed by another officer or director (or as directed by the local league's constitution), dispenses league funds as approved by the board of direcotrs, reports on the status of league funds, keeps local league books and financial records, prepares budgets, and assumes the responsibility for all local league finances.
The  most imoportant thing your league can do is incorporate.  Until you are incorporated, your Board of Directors can be sued for any league liability as individuals.  Once the league is incorporated,  it is the treasurer who is responsible to pay the State fee to maintain the league's corporate status.  For your assisitance, the website for California's Secreatry of State's Office is: 
http://www.ss.ca.gov/

 

LITTLE LEAGUE FEDERAL GROUP EXEMPTION:   Little league Baseball, Inc. is exempt from federal income tax as an Internal Revenue code Section 501 (c)3 organization.  This is important since as such, contributions made to Little League are deductible by the contributor.  Little League has obtained tax-exempt status for approximately 4,000 local leagues through a group exemption letter received from the Internal Revenue Service since 1981.  Local leagues have the option to seek their own tax exempt status by filing a separate application (Form 1023), or, they ay be automatically exempted from federal income tax if they normally do not have annual gross receipts of more than $5,000.   For a Little League to be included in the group exemption, it will be necessary to comply with the following procedural requirements as specified by the Internal Revenue Service.  These procedures are outlined in the following paragraphs:
  • A local league must be affiliated by charter with Little League Baseball, Inc. and subject to its general supervision.
  • A league adopts the same fiscal year as Little League Baseball, Inc. which is October 1 through September 30.
  • The league submits an annual financial statement showing income and expenses to Little League Baseball, Inc.
  • The league provides Little League International in Williamsport, PA the league’s employer identification number (EIN) as assigned by the Internal Revenue Service.  If the league does not have an employer’s identification number, it may complete an SS-4 form, available from the Internal Revenue Service, to obtain one.
  • Little League federal group tax exemption for a chartered league is not automatic.  It must be applied for through its league President requesting a Letter of Intent.  Following receipt of this letter by Little League International, a confirmation along with a Letter of Determination from the Internal Revenue Service will be provided to the local league.  These two documents must be kept together and presented when requested, i.e. by charitable contributors.
 Leagues in operation for one, two or three years:  For the purposes of the gross receipts test, a newly-chartered organization normally does not have more than $5,000.00 annually in gross receipts if:
  • During its first tax year the organization received gross receipts of $7,500.00 or less.
  • During its first two years the organization has a total of $12,000.00 or less in gross receipts, or
  • In the case of an organization that has been in existence for the three years, the total gross receipts received by the organization during the immediately preceding two years plus the current year at $15,000.00 or less.
 Once an organization has gross receipts in excess of the amounts stated above, it must seek tax exempt status through application with the Internal Revenue Service within 90 days after the end of the period in which the amounts are exceeded. Beyond the third year the threshold for tax return reporting to the Internal Revenue Service is gross receipts in excess of $25,000.00 annually. Gross receipts include contributions, gifts, and grants fro the public directly, sponsor fees, registration fees, membership dues and assessments, fundraising, etc. After tax status is determined, each tax exempt organization is required to file a return annually (Form 990 EZ with Schedule A) if gross receipts are in excess of $25,000.00 to $100,000.00.  If gross receipts are in excess of $100,000.00, a Form 990A with Schedule A must be filed with the Internal Revenue Service unless it normally receives gross receipts of less than $25,000.00 RESPONSE FROM BECKY BASSETT AT LITTLE LEAGUE HEADQUARTERS REGARDING GROUP EXEMPTION PROCEDURES  (Aug/2007)League specific confirmation letters are issued, along with the 3-page Letter of Determination from the IRS with a written request.  Please have the league submit the request along with their league ID #, league's federal Employer Identification Number (EIN) issued by the IRS, league officer contact information (name, position, mailing address and fax #) and I'll get them out to them.  Contact information is listed below: Becky Bassett, Operations Coordinator @ Little League International539 U.S. Route 15 HighwayP.O. Box 3485Williamsport PA  17701-0485570-326-1921 Ext. 228 ~ Fax: 570-322-2376 ~ E-Mail:  bbassett@littleleague.org

 


Handout: SECRETARY / TREASURER

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