New management at Solar. Who's in who's out?

soccer4fun wrote:I don't know specifics but there was no merger; Solar absorbed Andro and unless I am wrong it will not be anyone from Andro cleaning anything, it would be the other way around. Now Solar being absorbed by Texans or FCD, I can see it...

TulsaFootballDad wrote:So Andromeda merged with Solar, right? but wasn't it Solar that got a bid to GDA? So why is Andromeda cleaning house in the merger, are they the larger club? I though Solar was. This manuevering by clubs gets confusing.

Sho'Nuff wrote:Tax-exempt Organizations don't technically have owners.

08keepermom wrote:My understanding (could be wrong) was they would keep the Solar coaching and development methods and use the Andro management model.  Essentially taking the best from both clubs.  

soccer4fun wrote:I don't know specifics but there was no merger; Solar absorbed Andro and unless I am wrong it will not be anyone from Andro cleaning anything, it would be the other way around. Now Solar being absorbed by Texans or FCD, I can see it...

08keepermom wrote:My understanding (could be wrong) was they would keep the Solar coaching and development methods   

KeeperCommander wrote:

Sho'Nuff wrote:Tax-exempt Organizations don't technically have owners.

Not really true.  Tax exempt does not mean you can not be owned.  Equity clubs are owned by a membership, however many there are.

Who Really Owns a Nonprofit?

   September 1, 2015
   Greg McRay, EA
   Education, Featured, Managing a Nonprofit, Starting a nonprofit

The concept of who owns a nonprofit organization can be hard for some to grasp, especially given that the answer is, “No one…and everyone!”  We encounter this confusion with new clients on a fairly regular basis.  And, given people’s understanding of how basic business operates, it is understandable.  In order to fully appreciate the concept of “non-ownership”, it is helpful to first talk about the various types of business entities.  Then, we’ll look at organizational purpose.  By the end of the article, it should make a lot more sense.

There are several different types of business entities.  For-profit companies make up most of them.  Here are a few (there are others)…all of these have an owner or owners:

Sole Proprietorship: ...
General Partnership: ...
Corporation (for-profit):...
S-Corporation: ...
Limited Liability Company: An LLC is a formal association which combines the advantage of a corporation’s limited liability and the flexibility and single taxation of a general partnership.  An LLC has members rather than shareholders.

With the exception of the LLC, the business entities listed above cannot be used for nonprofit organizations.  Even the use of an LLC is extremely rare; all nonprofit LLC members must be recognized 501(c)(3) organizations, not people or other entity types.  The most popular business entity for nonprofits is the nonprofit corporation.  This type of corporation is different from a typical for-profit corporation or S-Corporation.  Those have shareholders (owners).  A nonprofit corporation has no owners whatsoever, only stakeholders.  A stakeholder is not an owner, but rather someone who has a stake in the successful operation of the organization.  Stakeholders could be members of the nonprofit, or even beneficiaries of the nonprofit’s activities.  One thing stakeholders have in common:  they have no legal ability to profit personally…hence, nonprofit.  A nonprofit corporation is formed to carry out a public purpose, whether that be religious, educational, charitable, scientific or whatever.  It is prohibited from acting in a manner that results in private inurement (profit) to individuals (for more information about inurement, please refer to our post about “Avoiding Conflicts of Interest).

How can that be?  Someone has to own it, right?  No, not really.  The nonprofit organization is not “owned” by the person or persons that started it.  It is a public organization that belongs to the public at-large.  The parties responsible to operate the organization for the stakeholders are the members of the board of directors.

Also, a nonprofit corporation cannot be sold.  It is simply not possible.  If a nonprofit corporation were to “close down”, or dissolve, the board of directors of the nonprofit must distribute all of the nonprofit’s assets to another nonprofit corporation after all debts have been settled.

“No one…and everyone!”  Hopefully now, it is much clearer what we mean.

Soapboxmom wrote:

KeeperCommander wrote:

Sho'Nuff wrote:Tax-exempt Organizations don't technically have owners.

Not really true.  Tax exempt does not mean you can not be owned.  Equity clubs are owned by a membership, however many there are.

https://www.501c3.org/who-really-owns-a-nonprofit/

Who Really Owns a Nonprofit?

   September 1, 2015
   Greg McRay, EA
   Education, Featured, Managing a Nonprofit, Starting a nonprofit

The concept of who owns a nonprofit organization can be hard for some to grasp, especially given that the answer is, “No one…and everyone!”  We encounter this confusion with new clients on a fairly regular basis.  And, given people’s understanding of how basic business operates, it is understandable.  In order to fully appreciate the concept of “non-ownership”, it is helpful to first talk about the various types of business entities.  Then, we’ll look at organizational purpose.  By the end of the article, it should make a lot more sense.

There are several different types of business entities.  For-profit companies make up most of them.  Here are a few (there are others)…all of these have an owner or owners:

Sole Proprietorship: ...
General Partnership: ...
Corporation (for-profit):...
S-Corporation: ...
Limited Liability Company: An LLC is a formal association which combines the advantage of a corporation’s limited liability and the flexibility and single taxation of a general partnership.  An LLC has members rather than shareholders.

With the exception of the LLC, the business entities listed above cannot be used for nonprofit organizations.  Even the use of an LLC is extremely rare; all nonprofit LLC members must be recognized 501(c)(3) organizations, not people or other entity types.  The most popular business entity for nonprofits is the nonprofit corporation.  This type of corporation is different from a typical for-profit corporation or S-Corporation.  Those have shareholders (owners).  A nonprofit corporation has no owners whatsoever, only stakeholders.  A stakeholder is not an owner, but rather someone who has a stake in the successful operation of the organization.  Stakeholders could be members of the nonprofit, or even beneficiaries of the nonprofit’s activities.  One thing stakeholders have in common:  they have no legal ability to profit personally…hence, nonprofit.  A nonprofit corporation is formed to carry out a public purpose, whether that be religious, educational, charitable, scientific or whatever.  It is prohibited from acting in a manner that results in private inurement (profit) to individuals (for more information about inurement, please refer to our post about “Avoiding Conflicts of Interest).

How can that be?  Someone has to own it, right?  No, not really.  The nonprofit organization is not “owned” by the person or persons that started it.  It is a public organization that belongs to the public at-large.  The parties responsible to operate the organization for the stakeholders are the members of the board of directors.

Also, a nonprofit corporation cannot be sold.  It is simply not possible.  If a nonprofit corporation were to “close down”, or dissolve, the board of directors of the nonprofit must distribute all of the nonprofit’s assets to another nonprofit corporation after all debts have been settled.

“No one…and everyone!”  Hopefully now, it is much clearer what we mean.

Solar Soccer Club is a properly registered public charity (501 c 3) with the IRS.  

Now if we could just get Larry Hall and David Arciniega clear on this!

Soapboxmom wrote:

KeeperCommander wrote:

Sho'Nuff wrote:Tax-exempt Organizations don't technically have owners.

Not really true.  Tax exempt does not mean you can not be owned.  Equity clubs are owned by a membership, however many there are.

https://www.501c3.org/who-really-owns-a-nonprofit/

Who Really Owns a Nonprofit?

   September 1, 2015
   Greg McRay, EA
   Education, Featured, Managing a Nonprofit, Starting a nonprofit
Non Profits and those that are labeled 501 C are 2 separate and completely different labels. You can one or the other and even both, but you apply for each separately
The concept of who owns a nonprofit organization can be hard for some to grasp, especially given that the answer is, “No one…and everyone!”  Everyone might own it if they were actually an owner of Corp or had an ownership stake of some sort in the Corp that had a 501 C status. So you CAN own something that has this status, however that status is not what you ownWe encounter this confusion with new clients on a fairly regular basis.  And, given people’s understanding of how basic business operates, it is understandable.  In order to fully appreciate the concept of “non-ownership”, it is helpful to first talk about the various types of business entities.  Then, we’ll look at organizational purpose.  By the end of the article, it should make a lot more sense.

There are several different types of business entities.  For-profit companies make up most of them.  Here are a few (there are others)…all of these have an owner or owners:

Sole Proprietorship: ...
General Partnership: ...
Corporation (for-profit):...
S-Corporation: ...
Limited Liability Company: An LLC is a formal association which combines the advantage of a corporation’s limited liability and the flexibility and single taxation of a general partnership.  An LLC has members rather than shareholders.

With the exception of the LLC, the business entities listed above cannot be used for nonprofit organizations.  Even the use of an LLC is extremely rare; all nonprofit LLC members must be recognized 501(c)(3) organizations, not people or other entity types.  The most popular business entity for nonprofits is the nonprofit corporation.  This type of corporation is different from a typical for-profit corporation or S-Corporation.  Those have shareholders (owners).  A nonprofit corporation has no owners whatsoever, only stakeholders.  A stakeholder is not an owner, but rather someone who has a stake in the successful operation of the organization.  Stakeholders could be members of the nonprofit, or even beneficiaries of the nonprofit’s activities.  One thing stakeholders have in common:  they have no legal ability to profit personally…hence, nonprofit.  In this segment we will talk about equity golf clubs. Most equity golf clubs have a membership or segment of membership that acts as stakeholders, (as you call them), equity owners, owners, or shareholders. All depends on the decade in which it was established as the terms have changed over the years. If and it is rare that it happens but if an equity club that is a non profit and 501 C is sold each equity owner has a right to a share of those proceeds. As in a personal profit if you will. Now I am sure that there is a legal term for this that I am sure you will research but trust me it happens everywhere and legally so. I just do not remember what that term is but I have been involved with several throughout my career. A nonprofit corporation is formed to carry out a public purpose, whether that be religious, educational, charitable, scientific or whatever.  There are many other classifications that it can be and no it does not have to serve the public. It is prohibited from acting in a manner that results in private inurement (profit) to individuals (for more information about inurement, please refer to our post about “Avoiding Conflicts of Interest).Correct you are not truly able to turn a profit as an owner on a yearly basis, as non profit does have its merits. You can carry a capital balance for future improvements or expansions. No you do not pay taxes on those funds but yo better be able to account for those funds if audited. Yes they will strip your status and your Corp will be hit with a tax bill.

How can that be?  Someone has to own it, right?  No, not really.  The nonprofit organization is not “owned” by the person or persons that started it.  It is a public organization that belongs to the public at-large.  Not true in the least little bit, the way that it is stated. The parties responsible to operate the organization for the stakeholders are the members of the board of directors.Yes

Also, a nonprofit corporation cannot be sold. Why would you try and sell a status It is simply not possible.  If a nonprofit corporation were to “close down”, or dissolve, the board of directors of the nonprofit must distribute all of the nonprofit’s assets to another nonprofit corporation after all debts have been settled.
Again you do not sell the status, you sell off the assets to settle debt and the rest either goes to anther Corp, Equity owners, or to charity of choice.
Another way would be to have a buyer assume the debt and pay the equity shareholders a fair sum for their share. You see the Corp can not profit and you can not sell a status however you can profit by having this status individually.

“No one…and everyone!”  Hopefully now, it is much clearer what we mean.
Hopefully now it is clearer, however I doubt it will be for Soap. Take into account there are literally 1000's of rules and laws that have to be taken into account for these status to be upheld and correctly followed on a yearly basis.

Solar Soccer Club is a properly registered public charity (501 c 3) with the IRS. I am sure they are. Funny how they are called a charity so people can pay good money to receive charitable services huh. 

Now if we could just get Larry Hall and David Arciniega clear on this!

Zizou wrote:I don't know for sure but I have a sneaky feeling that their are major moves between major players being made as we speak.

FCSoccerMom11 wrote:

Zizou wrote:I don't know for sure but I have a sneaky feeling that their are major moves between major players being made as we speak.

You started this post and you keep it going with these vague comments.  Clearly you know something more than you're sharing.  Why stir the pot?  Why not just say what you know?

NoSpinZone wrote:

FCSoccerMom11 wrote:

Zizou wrote:I don't know for sure but I have a sneaky feeling that their are major moves between major players being made as we speak.

You started this post and you keep it going with these vague comments.  Clearly you know something more than you're sharing.  Why stir the pot?  Why not just say what you know?

Z is wanting to say something he knows...but prob cant at this time for fear of giving up a 'resource', and is just hoping someone else comes on and spills the beans.  

Most likely, unless you are Solar parent, you'll give a rat's rear about it.

TulsaFootballDad wrote:I've always heard they were Solar Chelsea but then someone mentioned that their partnership with Chelsea was no longer in effect.