Do I have to attach receipts to a requisition; does this mean the team has to pay for the trophies and the pizza party before-hand, prior to getting reimbursed?
The response is: Yes. This is an IRS regulation. If you are given a check for $100 the IRS considers that taxable income to you unless you provide a receipt (i.e., you are using league fund raisers to avoid income tax). Teams use the Non-Profit tax status of UCYSL, Inc. to avoid paying state and federal income taxes on their fund raisers by holding it in an account maintained and disbursed by UCYSL, Inc. Union City Youth Soccer League, Inc. is a Non-Profit Corporation under the IRS code section 501C(3).
You can meet this obligation in several ways.
- 1. Pay for items send me the receipts along with a requisition signed by the coach (we have had problems with unauthorized purchases in the past). I will write a check to you directly.
- 2. Get an order or estimate from your vendor, send it to me along with a requisition and I will issue a check to the company. This is NOT A DIRECT BILL TO UCYSL! The order is still in your name. All we are doing is writing a check from your account directly to the vendor.
Checks should be turned around in 1 week or less.