There’s more to the big giveaway by the PGA Tour than meets the eye, and it can be found in the Tour’s IRS filings: money, and lots of it, all tax-free
Alex Miceli likes to throw around superlatives without peeling the onion or comparing apples to apples (“Golf pulls together for coronavirus relief,” April 15).
First, he writes, “No other sport has given more to charity than has golf.” That's true. But why? It’s because no other sport is a not-for-profit entity. The only way the PGA Tour keeps that tax status is because of the charitable structure it maintains within the IRS tax code.
Next, he writes, "professional tournaments, often organized as charitable events, are held around the world, with one of the primary objectives to support local charities." No, Alex, there are two primary objectives. One is to provide wealth for its members and executive staff, and two is to keep that all-important tax-exempt status.
The Tour's most recently filed IRS Form 990 shows that in 2018, the Tour generated $1.416 billion in total revenue and generated $70 million excess of revenue over expenses. The same Form 990 shows more than $2.3 billion in cash and investments. That's a lot of not-for-profit.
The current condition of the economy and the political climate could make for some anxious times come November for the PGA Tour and other “nonprofits.”
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