QUESTION
Do we need to register as a non-profit or corporation? Are we liable if someone gets hurt at our event? What tax laws will apply to us?
Asked on Sep 20th, 2011 on Business Law - Tennessee
More details to this question:
We are organizing a fundraiser event in Tn. We are simply two individuals organizing an event for a local clinic. We have an EIN number because we needed to open a bank account. The event will be held at a location where weddings and other events are held and we have rented the space for our event. Rent was paid to an events and culsulting group who manages the empty space and who has liablilty insurance. The clinic is aware that proceeds from the event will be donated to them. Local businesses have given us money so that there are no overhead costs and all ticket sales and merchandise sales will go to the clinic. This is a one time event. We do not anticipate an annual recurrence.
1 ANSWER
Business Law Attorney serving Memphis, TN
at
Law Office of Alan Alsobrook
Update Your Profile
With regards to the tax implications for the donations received, it depends on the tax status of the "local clinic." If the local clinic is tax-exempt then the donations to support it should be deemed tax-deductible. Next, with regards to liability should an accident occur, both the local clinic, and the property owner may be liable. If you would like to incorporate and seek 501(c)(3) status you could shield the local clinic from liability. However, the local clinic's insurance policy may cover any such liabilities, or you could enquire if there is an insurance policy available for single-use events.
For more information on this topic visit my website at www.alsobrooklaw.com
This is not intended to be legal advice, and is general in its nature. No attorney-client relationship exists or is formed by this information. Furthermore, this does not represent the views or opinions of LexisNexis or its affiliated companies.
Answered on Sep 21st, 2011 at 2:28 PM