# Chew On This Basketball non profit Corporation ## Coach Jack Chew's Immediate Action Guide & Filing Roadmap **Entity Name:** Chew On This Basketball non profit Corporation **California Entity Number:** B20260111648 **Date of Incorporation:** March 5, 2026 **Registered Office:** 1401 Antigua Ln, Foster City / San Mateo, CA 94404 **Sole Founder & Principal:** Jack Chew (Founder, CEO & Athletic Director) **Legal Counsel / Filing Partner:** LegalZoom Non-Profit Division (Gina Bautista, Senior Non-Profit Strategist) --- ### Executive Overview: Where You Stand Right Now Your corporate entity is officially formed and registered with the State of California. The Articles of Incorporation are file-stamped by the Secretary of State under **Entity #B20260111648**. To advance from an incorporated state nonprofit to a fully operational, tax-exempt **501(c)(3) Public Charity** with active banking and programmatic facilities, follow this prioritized execution blueprint. --- ### Priority 1: California Form SI-100 (Statement of Information) > [!IMPORTANT] > **Action Required Immediately**: California law requires every newly formed nonprofit public benefit corporation to submit an initial **Statement of Information (Form SI-100)** within 90 days of incorporation. > > * **Deadline:** Within 90 days of March 5, 2026. > * **Filing Fee:** $20.00. > * **Where to File:** Online via California Secretary of State [bizfileonline.sos.ca.gov](https://bizfileonline.sos.ca.gov). > * **What Jack Needs to Enter:** > * **Corporation Name:** Chew On This Basketball non profit Corporation > * **Entity Number:** B20260111648 > * **Principal Office & Mailing Address:** 1401 Antigua Ln, Foster City, CA 94404 > * **Chief Executive Officer (CEO):** Jack Chew (1401 Antigua Ln, Foster City, CA 94404) > * **Secretary:** Jack Chew *(or initial trusted officer)* > * **Chief Financial Officer (CFO / Treasurer):** Jack Chew *(or initial trusted officer)* > * **Agent for Service of Process:** Jack Chew *(or LegalZoom registered agent if enrolled in LegalZoom's Registered Agent service)* > * **Status Check:** Check your LegalZoom portal or ask Gina Bautista (in the email below) if LegalZoom is submitting the initial SI-100 on your behalf. If not, Jack can complete it directly online in under 10 minutes on `bizfileonline.sos.ca.gov`. --- ### Priority 2: Ready-to-Send Email to Gina Bautista at LegalZoom Copy, customize, and send the following email to **Gina Bautista** (or reply to her active onboarding thread in your LegalZoom account). This gives LegalZoom everything they need to draft and assemble your **IRS Form 1023 Application for Recognition of Exemption**. ```text To: Gina Bautista Subject: Chew On This Basketball non profit Corporation (Entity #B20260111648) - Form 1023 Narrative & Filing Data Dear Gina, I am writing to provide the complete operational, programmatic, and financial documentation for our IRS Form 1023 filing for Chew On This Basketball non profit Corporation (California Entity #B20260111648, filed March 5, 2026). Please review the following inputs for the application: 1. Core Programmatic Activities Breakdown (IRS Form 1023, Part IV): Our mission is to provide 100% free youth basketball skill development, academic tutoring, and character mentorship for San Mateo County youth: - Pillar 1 (50% of time/resources): Youth Athletic Training & Competitive Tournament Play. Providing elite basketball instruction, year-round competitive league play, and funding travel scholarships for under-resourced student-athletes. - Pillar 2 (30% of time/resources): "No Study, No Run" Mandatory Academic Lab. Daily after-school study halls, STEM/humanities tutoring, and homework checks. Youth must complete study requirements prior to taking the hardwood. - Pillar 3 (20% of time/resources): Court Manners, Morals & Civic Leadership. Curriculum instilling accountability, emotional regulation, sportsmanship, and community service. 2. Three-Year Pro-Forma Operational Budget: - Year 1 Projected Revenue: $1,142,000 | Total Expenses: $1,059,200 | Net Operating Reserve: $82,800 - Year 2 Projected Revenue: $1,291,000 | Total Expenses: $1,123,080 | Net Operating Reserve: $167,920 - Year 3 Projected Revenue: $1,410,000 | Total Expenses: $1,178,210 | Net Operating Reserve: $231,790 Note: Our revenue engine utilizes daytime and late-night commercial gym sub-leasing (corporate leagues, morning adult pickleball, regional weekend tournament hosting) to generate programmatic cross-subsidies that guarantee zero out-of-pocket costs for youth participants. 3. Officers & Board Governance: - Jack Chew serves as Founder, Chief Executive Officer, and Athletic Director / Head Coach. - I am currently the sole incorporator. To align with IRS Form 1023 best practices regarding board independence, I am appointing two (2) independent community/parent advisors to serve as uncompensated Directors on our initial Board. 4. Clarification on State Filings: - Has LegalZoom filed the initial California Statement of Information (Form SI-100), or should I submit it directly via the California bizfile portal? - Once Form 1023 is approved by the IRS, does LegalZoom handle California FTB Form 3500A (California state income tax exemption), or will I submit that directly? Please advise on any additional details needed to finalize our Form 1023 package for electronic submission via Pay.gov. Warm regards, Jack Chew Founder & CEO | Chew On This Basketball non profit Corporation 1401 Antigua Ln, Foster City, CA 94404 ``` --- ### Priority 3: The Board of Directors Question (How Jack Handles It) > [!NOTE] > **Why the Board Structure Matters to the IRS:** > Under California Corporations Code § 5151, a California nonprofit can legally be formed with a single director. However, **IRS Form 1023 Part V specifically audits board independence**. If an organization has only 1 director who is also the compensated executive (Jack Chew), the IRS frequently issues inquiries or delays approval due to perceived risk of "private inurement" or lack of oversight. **The Recommended Solution for Coach Jack:** 1. **Board Composition (3 Members):** * **Jack Chew:** President, CEO, and Head Coach (Voting Director, compensated for operational/coaching duties). * **Director 2 (Independent):** Trusted community leader, local educator, or school administrator ($0 compensation). * **Director 3 (Independent):** Respected youth sports parent, athletic director, or civic volunteer ($0 compensation). 2. **Conflict of Interest & Salary Insulating Resolution:** * Adopt the standard IRS Conflict of Interest Policy (included in LegalZoom's bylaws packet and in our `07_Organizational_and_Programmatic_Charter.md`). * Jack recuses himself from board votes establishing executive compensation, satisfying **Treas. Reg. § 53.4958-6 (Rebuttable Presumption of Reasonableness)**. --- ### Priority 4: Federal & California Compliance Roadmap | Stage | Filing / Action | Agency | Fee | Target Date / Trigger | | :--- | :--- | :--- | :--- | :--- | | **Step 1** | **Form SI-100** (Initial Statement of Information) | California Secretary of State | $20 | **Immediate** (within 90 days of March 5, 2026) | | **Step 2** | **IRS Form 1023** (Application for Exemption) | Internal Revenue Service (Pay.gov) | $600 | Completed via LegalZoom | | **Step 3** | **Bank Account Opening** | Commercial Bank (Chase / Wells Fargo) | $0 | Immediately upon having Articles, EIN & Bylaws | | **Step 4** | **Form FTB 3500A** (CA State Tax Exemption) | California Franchise Tax Board | $0 | Immediately after receiving IRS 501(c)(3) Letter | | **Step 5** | **Form CT-1 / RRF-1** (Charitable Trusts Registry) | California Attorney General (DOJ) | $25 | Within 30 days of receiving donations or holding assets | | **Step 6** | **CA AB 506 Youth Safeguards Registration** | CA DOJ Live Scan / Trustline | Variable | Prior to first youth practice with staff | --- ### Priority 5: San Mateo County Non-Profit Bank Account Dossier When Jack goes to a local bank branch (e.g., JPMorgan Chase, Wells Fargo, or Bank of America in Foster City, San Mateo, or Redwood City) to open the organization's business checking account, take a binder with the following exact items: 1. **Stamped Articles of Incorporation:** The official copy stamped March 5, 2026 with California Entity #B20260111648. 2. **Federal EIN Letter (IRS Form CP 575):** Provided by LegalZoom or generated online. 3. **Filed Form SI-100 (Statement of Information):** Demonstrating active officer registration in California. 4. **Corporate Bylaws & Board Resolution:** Documenting that the Board of Directors authorized opening the bank account and designated Jack Chew as the sole authorized signatory. 5. **Government Photo ID:** Jack Chew's Driver's License or Passport. 6. **Opening Deposit:** Check or cash ($100–$500) to activate the account. --- ### Priority 6: Executive FAQ for Coach Jack **Q: Can Jack Chew receive a salary from the non-profit?** **A:** Yes. Founders and coaches can be paid reasonable W-2 compensation for their services. In our 3-year budget, Jack Chew is budgeted as Athletic Director / Head Coach at $115,000/year. The key IRS rule is that an independent board (the 2 unpaid directors) must vote on and approve Jack's compensation based on fair market value, with Jack recusing himself from that vote. **Q: Can we begin collecting sponsor checks or donations before the IRS 501(c)(3) determination letter arrives?** **A:** Yes. Once Form 1023 is submitted, your 501(c)(3) status is retroactive to the March 5, 2026 date of incorporation. Donors can give contributions, but it is best practice to inform large donors that the 501(c)(3) determination application is pending with the IRS. For major grants requiring an immediate determination letter, a local 501(c)(3) fiscal sponsor can be used temporarily if needed. **Q: How does the commercial rental income work with non-profit rules?** **A:** Sub-leasing basketball court space to adult tech leagues and pickleball players is 100% legal for a 501(c)(3). In `01_IRS_Form_1023_Narrative_and_Compliance.md`, we explain that all revenues directly fund our charitable youth mission ("Robin Hood" model). Any potential Unrelated Business Income Tax (UBIT) is sheltered by dual-use facility expense deductions and programmatic debt structures.