Board of Directors
What is Davis Legacy SOccer Club?
Davis Youth Soccer League (DBA: Davis Legacy Soccer Club) is a 501 (c) 3 Nonprofit (see our IRS Determination Letter).
What Is a 501 (c) (3) Nonprofit? Covered by Section 501 (c)of the United States Internal Revenue Code, nonprofits, in general, are called 501(c) organizations. Under that code, 27 types of nonprofits receive some exemption from federal income taxes. The most common type of nonprofit organization, the 501 (c) (3) covers a lot of ground. This
kind of nonprofit is the one we are most likely to think of when we imagine a “nonprofit.” They are the charities to which we turn for help and support with our charitable donations. We often call them “charitable organizations.” Besides federal tax exemption, a 501 (c) (3) nonprofit enjoys several benefits when it serves these purposes:
- Testing for public safety
- Fostering amateur sports competition
- Preventing cruelty to children or animals
501 (c) Nonprofits Fall into Two Categories
1. Public charity. The IRS defines a public charity as “not a private foundation.” Public charities receive most of their income from the general public or the government. Public support must be broad rather than limited to a few people or families.
2. Private foundation. It receives its income from investments and endowments rather than the general public.
Private foundations are subdivided into operating and nonoperating. Nonoperating foundations use their income for grants to other nonprofits. Those organizations carry out the charitable aims of the foundation. An operating foundation runs its own programs that address various charitable goals.
Davis Legacy Soccer Club falls into the Public Charity category.
Requirements for 501 (c) (3) Tax-exempt Status
To receive the benefits of tax-exemption, a 501 (c) (3) organization must meet several requirements beyond serving the charitable purposes listed above. These requirements are:
1. It must be organized and operated only for exempt purposes.
2. It must not be organized or operated for the benefit of any private interest. Its net earnings may not benefit any private shareholder or individual. Nonprofits can make
a profit, but that profit must support charitable purposes only.
3. It is restricted in its political and lobbying activities.
What Benefits Do 501 (c) (3) Nonprofits Enjoy?
It is helpful for a nonprofit organization to seek tax exemption. The benefits include:
- It can receive grants from private foundations and the government.
- It is exempt from many federal, state, and local taxes.
- It can provide a tax deduction to individual donors.
- It may receive special postage rates, nonprofit advertising rates, and other
- Protection from lawsuits. Since a charitable organization usually incorporates before
seeking tax exemption, lawsuits only apply to its corporate assets. Thus, staff and
board members enjoy legal protection. But, that protection may not cover all
situations, and as such, nonprofits should also buy certain types of insurance as
What’s the role of the board of directors of a nonprofit corporation?
Just as for any corporation, the board of directors has three primary legal duties known as the “duty of care,” “duty of loyalty,” and “duty of obedience.”
Duty of Care: Take care of the nonprofit by ensuring prudent use of all assets, including facility, people, and good will;
Duty of Loyalty: Ensure that the nonprofit’s activities and transactions are, first and foremost, advancing its mission; Recognize and disclose conflicts of interest; Make decisions that are in the best interest of the nonprofit corporation; not in the best interest of the individual board member, a team, or group of teams (or any other individual or for-profit entity).
Duty of Obedience: Ensure that the nonprofit obeys applicable laws and regulations; follows its own bylaws; and that the nonprofit adheres to its stated corporate purposes/mission.
Davis Legacy Soccer Club Structure
Davis Legacy Soccer Club is run by 15-person Board of Directors. The composition of the Board of Directors is as follows: President, 1st Vice President, 2nd Vice President, 3rd Vice President, 4th Vice President, Treasurer, Secretary, 3 Boys Affiliated Team Representatives, 3 Girls Affiliated Team Representatives, Executive Director of Coaching (non-voting), and the Director of Administration and Finance (non-voting).
The election of an affiliated team representative is subject to the following conditions:
1. No person shall be elected to an Affiliated Team Representative position if they are an interested person. For purposes of this section, interested person means the following:
A. Any person currently being compensated by the corporation for services rendered to it within the previous twelve (12) months, whether as a full or part-time officer, other employee, or independent contractor and where such compensation exceeded $250.
B. Any brother, brother in-law, sister, sister in-law, mother, mother in-law, father, father in-law, grandmother, grandmother in-law, grandfather, grandfather in-law, son, son in-law, daughter, daughter in-law, or spouse, of any such interested person.
2. No person may be elected to represent more than one group of teams.
3. No person may be elected to represent a group of teams if they are currently serving on a Board of Directors for another soccer entity.
4. No person may be elected to represent a group of teams if they are currently serving as an officer within the Corporation.
5. No person may be elected to represent a group of teams if, within the last three years, the individual previously served on a Board of Directors for another soccer entity that resides within a 250-mile radius of Davis, California.
Affiliated Team Representatives, in addition to fulfilling their duties of care, loyalty, and obedience, is responsible for the following actions:
1. Act as a conduit for information sharing. The representative is required to solicit feedback from members within their group of teams, as well as disseminate information received at the Board of Directors meetings to those same groups.
2. Act independently from your group. The representative is required to take actions that are in the best interest of the organization as a whole.
3. Act as a supporter of the organization. The representative is required to be a positive role model and promote Davis Legacy Soccer Club and the game of soccer.