Where is our government when it comes to designating non-profits?
The NFL, NHL, PGA and NBA all come under what categorizes the definition of a non-profit! I really can’t bite into that sandwich. It’s too sour, and it raises the question of why and how come?
Since the Ray Rice story of domestic violence was when the “you know what” hit the fan for the NFL, what came to the forefront was the fact that one of the most profitable professional athletic associations has the questionable label of being non-profit.
Last year, NFL commissioner Roger Goodell raked in a $44 million dollar salary. Not bad, for a program labelled as a non-profit. Wait, what? It seems there must be some profit. If this guy can make more money in one year, with the average American family household income of just over $50,000, Goodell’s salary equals 880 American household family incomes.
Major League Baseball has changed its status as a non-profit, solely because Non-Profit Organizations (NPOs) must report the salaries of their top executives, so let’s be real—says baseball.
The Red Cross and Amnesty International are titled as non-profit organizations. That means they are free of paying federal taxes, according to “The Atlanta Journal-Constitution.” The publication also stated that the PGA is the worst contributor to charitable causes.
There is a complicated formula that puts the NFL into a NPO status. I certainly don’t have enough room, in this article, to explain what the particulars mean. But in the short of it all, the NFL is considered a 501(c)(6) NPO, and to be brief, that means it is categorized as a charitable organization.
So, further in my research, a 501(c)(6) engages in limited political activities that inform, educate, and promote their given interest. They cannot endorse or contribute to a political candidate or cause (like a political party). This 501 status is specifically set up for Chamber of Commerce organizations, economic development corps, real estate boards, trade boards and—professional football leagues?
The majority of these corporations that come under as 501s are exempt from federal taxes because they do charitable work, but not so true with a 501(c)(6). This gets really complicated, but the short of it is that the NFL’s status is based on membership dues, and they don’t really get a deduction for charitable contributions.
Typically,501(c)(6) organizations work to improve the business conditions of their members. Organizations that are formed to promote a particular industry (pro football) and advertise to encourage use of the product or industry qualify for exemption as a 501(c)(6). They do not benefit a private shareholder or individual.
In other words, a 501(c)(6) can lobby the government for legislation that supports the groups’ common interest. The sole purpose is to improve business conditions of their members. They are non-profit, and not necessarily charitable. All of these 501s are part of the Internal Revenue Code, the IRC. There are 29 “501 somethings,” which are part of the IRC.
In many cases, there is a fine line that defines what these organizations represent and how they are considered federally tax exempt. The NFL falls within those fine lines. Trying to make sense of this is obviously not easy, but the reality of it is simple. It’s all in the fine print! Oh, those documents and their fine print!
Goodell’s $44 million salary can’t slip under that fine print, only because it’s $44 million, and now the public is having a difficult time swallowing the NFL as an NPO, not to mention other professional sports organizations.
Now the time for change has come, and to be up front with the public and the fans. The NFL and other professional sports organizations need to fess up and get real about their status as NPOs. They are far from being non-profits and these politicians who support this idea, who also agree with the oil companies getting subsidies from the government, need to realize we can see through the veil. Is it time for change? Oh yeah.
If we, as Americans, have to do our part with paying taxes, why can’t these multibillion dollar corporations, who pay their CEOs millions of dollars, do their part?
The time for tax equity has come out from the closet of fine print. We need to make noise. As hard-working Americans, it’s our Republic and we can make it work with our votes. The weight and burden of paying the majority of taxes, by the middle class, is like a “gun” in the ribs of the average American family.
I know Goodell pays taxes, but, the NFL? Roger, $44 million? Come on, the party’s over, face the truth by telling the truth!
We have to stop turning our backs on this stuff. It’s like when the military was being charged hundreds of dollars for a nut and bolt. Someone has to regulate this stuff.
The proof is simple. These corporations are out of control and taking advantage of an antiquated Internal Revenue Code, but more than not, they have been allowed to hide in the swamp of bureaucracy! Enough!
