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pinto

(106,886 posts)
Sun Jun 15, 2014, 02:05 PM Jun 2014

What do the NFL, NHL and PGA all have in common?

They are all tax exempt non-profits.

http://www.deseretnews.com/article/865564748/The-NFL-NHL-PGA-are-all-nonprofit-tax-exempt-organizations.html?pg=all

The NFL, NHL, PGA are all nonprofit, tax-exempt organizations

The United Way, The Red Cross and Amnesty International all come to mind when thinking of nonprofits.

But one organization isn’t typically associated with these groups: The National Football League.

That’s right, the NFL. It’s apparently classified as a nonprofit organization free of federal taxes, according to The Atlanta Journal-Constitution.

A 1966 law specifically allowed football leagues a 501(c)(6) status as tax-exempt trade organizations.

Because of this, the NFL is able to enjoy $184 million in revenue from its member teams and $1 billion in assets, all of which is tax-exempt.

Other sports organizations, like the Professional Golf Association and the National Hockey League, share the same status as the NFL.

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What do the NFL, NHL and PGA all have in common? (Original Post) pinto Jun 2014 OP
'Non-profit' doesn't mean 'charity'. X_Digger Jun 2014 #1
Don't most trade organizations fit into this category? Jenoch Jun 2014 #2
I don't have a problem with this. Gman Jun 2014 #3

X_Digger

(18,585 posts)
1. 'Non-profit' doesn't mean 'charity'.
Sun Jun 15, 2014, 02:13 PM
Jun 2014

Most charities are non-profits, but nowhere near all non-profits are charities.

Non-profit just means that there's no stock holders. A better term would be 'non-stock corporation'.

Here's some other things that folks seem to think about 'non-profits' that actually aren't true:

1. 'Non-profit' companies can actually make profit. Gobs and gobs of it. Even charities.

2. 'Non-profit' companies can pay their staff whatever they like (in accordance with their bylaws / incorporation documents.)



Other examples of 'non-profit' companies? Your local cemetery, rotary club, orchid grower's association, the state credit union, elks fraternal order, maybe even your pension fund.

 

Jenoch

(7,720 posts)
2. Don't most trade organizations fit into this category?
Sun Jun 15, 2014, 04:03 PM
Jun 2014

As I understand it, trade organizations are paid dues from their members. The dues have already been taxed and the taxes were paid by the member that earned the money. What I am saying is the money was already taxed and paid by each team.

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