Executive Summary
This guide outlines how youth soccer clubs organized as 501(c)(3) nonprofits can legally partner with TheKickWall to provide training resources to their members while receiving revenue sharing that supports club operations and potentially funds a physical KickWall installation.
Bottom Line: This partnership model is legally sound when structured as a program expense/sponsorship rather than a commission or kickback, with all funds flowing to the club's general account and transparent disclosure to members.
Is This Legal?
Yes, when structured correctly.
This partnership model is similar to common sponsorship and vendor arrangements in youth sports. The key is ensuring the arrangement:
- Benefits the club as a whole (not specific insiders)
- Flows through the club's general account (not individual credits)
- Is transparently disclosed to members
- Aligns with the club's educational/athletic mission
What makes this different from a prohibited kickback:
- Written agreement is between TheKickWall LLC and the club (entity-to-entity), not individuals
- Revenue is labeled as "program support" or "sponsorship," not "commission" or "referral fee"
- All funds are controlled and budgeted by the club for club-wide purposes
- Parents are clearly informed of the relationship
501(c)(3) Compliance Framework
Core Requirement: Avoid "Private Inurement"
The IRS prohibits 501(c)(3) organizations from allowing net earnings to benefit private individuals or insiders. This partnership avoids private inurement by:
- Organizational Benefit: Funds support the club's educational mission (curriculum, coaching tools, facility development)
- No Individual Rebates: No money goes to individual family accounts or player-specific credits
- Board Control: Club board decides how to allocate funds within the mission
- Arm's Length: No club board members have ownership interest in TheKickWall
Framing as "Program Expense"
The subscription should be characterized as:
- "Annual curriculum and player-development platform license for the club"
- "Coach-development tool" - standardized drills that raise coaching quality across age groups
- "Accessibility investment" - on-demand training resource included in club dues
NOT as:
- Commission or kickback
- Individual family purchases with tracked credits
- Mandatory commercial partnership
Acceptable Uses of Revenue
When a 501(c)(3) youth sports club generates surplus revenue, acceptable uses include:
- ✅ Reasonable compensation for staff and coaches (market rates)
- ✅ Facility improvements, equipment, and program expansion
- ✅ Technology platforms, coaching education, and digital curricula
- ✅ Scholarships and financial aid for players
- ✅ Building reserves for future capital projects (like a KickWall installation)
Revenue Sharing Structure
TheKickWall offers two partnership tiers designed to comply with nonprofit regulations:
Tier 1: Standard Partnership (33% Revenue Share)
Structure: Club receives 33% of all subscription fees paid by club members ($30/year per member)
Example: 100 members = $990/year to club general fund
Recommended Accounting: Record as "Program Support Revenue - TheKickWall Partnership" and report on Form 990 as "Program Service Revenue"
Tier 2: KickWall Installation Fund (50% Revenue Share)
Structure: Club receives 50% of all subscription fees, dedicated to KickWall installation fund until $150k goal is reached
Example: 2,000 members = $30,000/year to installation fund (5 years to goal)
Recommended Accounting: Record as "Restricted Program Support - Capital Project Fund" and report separately on Form 990
State-Specific Considerations
We understand that each state has different regulations for 501(c)(3) organizations. Our partnership model is designed to be compliant across all states, but we recommend:
- Reviewing your state's nonprofit corporation laws
- Consulting with your club's legal counsel
- Ensuring proper disclosure in your annual filings
We handle all compliance requirements and can work with your legal counsel to ensure the partnership meets your state's specific regulations.
Implementation Checklist
- Board Approval: Present partnership proposal to board for approval as a program expense
- Legal Review: Have club legal counsel review partnership agreement
- Member Disclosure: Inform members of partnership in registration materials or club communications
- Accounting Setup: Establish proper accounting codes for subscription expense and revenue share
- Form 990 Reporting: Include partnership revenue in annual Form 990 filing with appropriate descriptions
- Ongoing Compliance: Maintain documentation of how revenue is used within club's mission
Contact & Support
We're here to help ensure your partnership is fully compliant. For questions or to discuss your club's specific situation:
Email: thekickwall@gmail.com
We can provide:
- Partnership agreement templates
- Accounting guidance
- Form 990 reporting examples
- State-specific compliance support