Greetings Handball Family:
Last year, the Board of Directors determined that the Colorado Handball Association would like to become an official tax exempt entity completely independent from the United States Handball Association (USHA).
To that end, we drafted and approved Articles of Association, Bylaws, a Conflict of Interest Policy, and arranged for a filing with the State of Colorado with the goal of making the CHA a not-for-profit entity in Colorado.
We filed with the IRS requesting designation as a 501(c) 3 charity as defined in the Internal Revenue Code. Becoming a 501(c) 3 charity means that the CHA can receive donations and the donor can deduct those donations from their personal taxes. In the past, the USHA was used when large donations were received. They retained 5% of each donation for processing and 1% for managing the money and a small annual fee. Despite these fees, the USHA recently made it clear that they would like us to discontinue using their services.
I am pleased to announce that we have received our designation from the IRS and can now operate independently of the USHA.
As we transition to a 501(c) 3, we have formalized the accounting into a P&L and Balance Sheet format allowing for more transparency in what money is spent for which programs. Annually, we will complete a tax filing with the IRS and the State to maintain our status. We also plan to purchase 3rd party software to maintain the accounting and have established more strict guidelines for documentation of reimbursable expenses by the CHA and volunteers.
I believe this is a win-win for everyone. As a supporter of handball, you will have a tax deduction, even if your donation is less than the minimum sent to the USHA. Our intention is that CHA members feel more comfortable with the checks and balances of a third-party accounting software, creating additional attention to and transparency of the financials.
I am happy to answer any questions you might have about this change. I am very excited to move forward under the CHA Articles, Bylaws and Conflict of Interest Policy.