$1,138,400
$853k Commercial / $285k Philanthropic
16,500 sq. ft.
2 Full Courts / 6 Morning Pickleball
$0.00 Free
100% Subsidized / Zero Dues
$600,000
$345k CapEx / $255k Operating Reserve
100% W-2
CA AB 5 & AB 506 Live Scan
Chew On This Basketball
The Maximum-Utilization, 100% Free Youth Basketball & Academic Academy
A battle-tested operational, legal, and financial blueprint for San Mateo County, California. Engineered to eliminate pay-to-play barriers for student-athletes through a commercial adult-league engine that achieves self-sustaining profitability.
"The specific purpose of this corporation is to provide young youth basketball skills. Also teach exercise programs morals and manners. This corporation is organized and operated exclusively for the purposes set forth within the meaning of Internal Revenue Code section 501(c)(3)."
— Filed at Sacramento, CA • Registered Headquarters: 1401 Antigua Ln, Foster City, CA 94404
Elite youth basketball in the Bay Area has devolved into an exclusionary $3,000–$6,000/year pay-to-play circuit. Low- and middle-income youth are locked out of elite coaching, college recruitment visibility, and academic support simply due to household economics.
School districts and civic recreation centers across San Mateo County suffer from extreme gym scarcity. Youth clubs face rolling cancellations and midnight practice slots, destabilizing family schedules and school homework routines.
The "Robin Hood" Social Enterprise Architecture
Commercial Hours Cross-Subsidize 100% Free Elite Youth Development
$853,400 / yr
High-Margin Commercial Utilization
- • Morning Pickleball Hub: 6 courts, $15 drop-in ($180k)
- • Silicon Valley Tech Leagues: 32 corporate teams ($307k)
- • Weekend Tournaments: 18 regional shootouts ($259k)
- • Private Rentals & Streams: Clinics & passes ($107k)
100% Free Subsidized
Zero Cost to Enrolled Families
- • Elite Basketball Academy: Uniforms, gear & court time free
- • "No Study, No Run": Mandatory 90m daily academic tutoring
- • Travel Scholarships: Flights, vans & hotels 100% funded
- • Values & Manners: Weekly character leadership workshops
IRS Form 1023 Narrative & Legal Compliance
Formal Part IV Programmatic Narrative, Private Inurement Rebuttable Presumption, UBIT Shield, and California AB 5 / AB 506 Standards.
📜 Form 1023 Part IV: Three Programmatic Pillars
Pillar 1: Free Elite Amateur Athletic Development (50% Time & Budget)
IRC § 501(c)(3)Provides year-round intensive basketball training, athletic conditioning, injury prevention, and competitive tournament play to youth residing in San Mateo County, prioritizing underrepresented student-athletes. The program operates with zero player fees, supported by philanthropic donations and dedicated at-cost programmatic court blocks.
Pillar 2: Mandatory Academic Tutoring & "No Study, No Run" (30% Time & Budget)
Educational MandateDirectly fulfilling the educational purpose: athletes must complete a 90-minute structured academic study hall led by credentialed W-2 tutors prior to entering the court. Includes daily homework completion checks, STEM tutoring, and NCAA initial-eligibility tracking to ensure high school athletes meet Division I/II core GPA requirements.
Pillar 3: "Morals, Manners & Character Leadership" (20% Time & Budget)
Civic & CharacterOperationalizing the filed charter clause ("teach exercise programs morals and manners"). Features structured weekly workshops in verbal communication, respectful engagement with authorities and referees, emotional regulation, and 20 hours of mandatory team community service per season.
UBIT & Commerciality Doctrine Shield
To prevent IRS scrutiny or corporate tax liability on commercial adult leagues, facility management is insulated within a separate Operating Entity (OpCo LLC). The 501(c)(3) maintains an uncompromised exempt status. If operated integrally, commercial profits are formally reported on Form 990-T with full operational expense deductions.
Executive Compensation Rebuttable Presumption
Under Treasury Regulation § 53.4958-6, all executive salaries (ED: $150k, DO: $120k, AD: $115k) are voted on by an independent Board of Directors utilizing Bay Area regional nonprofit comparability data and recorded in contemporary board minutes to eliminate private inurement liability.
California Statutory Labor & Safety Mandates
Live Scan DOJ/FBI fingerprint registry for all coaches and travel chaperones; formal appointment of Athletic Director as Child Safety Officer; mandatory "Rule of Two" adults present at all times.
Zero 1099 independent contractor risk. 100% of coaches, trainers, tutors, and event staff are on direct W-2 payroll covered under California workers' compensation (Sports Class 9040/9102).
Facility & Real Estate Master Plan
16,500 Gross Sq. Ft. Dual-Court Facility, San Mateo County Municipal Entitlements, and $345,000 CapEx Buildout.
Dual-Court Facility Blueprint
16,500 Sq. Ft. Total Clear-Span Industrial Flex
Robbins Maple Hardwood
Converts to 3 Pickleball Courts (Mornings)
Robbins Maple Hardwood
Converts to 3 Pickleball Courts (Mornings)
Itemized Pre-Launch Buildout CapEx ($345,000)
| Component | Specification & Vendor | Cost |
|---|---|---|
| Dual Hardwood Court System | Robbins Bio-Channel floating sprung maple (12,800 sq ft installed with lines) | $150,000 |
| Ceiling-Suspended Hoops | 4 electric winch glass backboards with safety breakaway rims | $48,000 |
| Electronic Scoreboards & Stats | 2 Fair-Play multi-sport LED scoreboards with wireless shot-clocks | $16,000 |
| Academic Center Technology | Acoustic glass walls, 20 high-speed Mac/PC stations, smartboard, desks | $32,000 |
| Strength Lab & Med Clinic | Rubber plyometric turf, banded rigs, taping tables, AED defibrillator | $26,000 |
| Security & Video Streaming | Keyless RFID entry turnstile, security cameras, AI game cameras (Pixellot/Hudl) | $18,500 |
| Commercial Floor Auto-Scrubber | Tennant T300 Walk-Behind auto-scrubber machine & court cleaning rigs | $9,500 |
| City Permits, CUP & Architecture | Conditional Use Permit fees, acoustic testing, parking study, ADA review | $45,000 |
| TOTAL PHYSICAL BUILDOUT CAPEX | $345,000 | |
Master Utilization & Commercial Engine
Empirical Revenue Yields, 7-Day Court Matrix, and Floor Hygiene Solution.
$180,000 / yr
Peninsula Pickleball Club
• 6 courts $\times$ 4 players = 24 on court
• 2 daily shift rotations = 48 players/day
• 48 players @ $15/day = $720/day
• 250 operating days = $180,000/yr
$307,200 / yr
Silicon Valley Tech Leagues
• 2 courts run 6 games/night = 24 games/wk
• 32 corporate teams per 10-week season
• $3,200/team $\times$ 32 teams = $102,400
• 3 seasons per year = $307,200/yr
$259,200 / yr
In-House Tournaments
• 18 weekend tournaments / year
• 16 teams @ $450 entry fee = $7,200
• 600 gate entries @ $12 = $7,200
• $14,400/event $\times$ 18 = $259,200/yr
Complete 7-Day Court Matrix
| Time Window | Monday – Thursday | Friday | Saturday – Sunday |
|---|---|---|---|
| 06:30 – 11:30 AM | Morning Pickleball Hub (6 Courts) | Morning Pickleball Hub (6 Courts) |
In-House Tournament Circuit 2 Full Courts running 16–20 games/day. $450 team fee + $12 gate admission. |
| 11:30 – 03:30 PM | Private Trainer Sub-Leases & Shoot-arounds | High School Drop-in Runs & Floor Maintenance | |
| 03:30 – 05:00 PM | 📚 MANDATORY ACADEMIC STUDY HALL ("No Study, No Run" Tutoring Block) | ||
| 05:00 – 07:30 PM | 🏀 100% FREE YOUTH BASKETBALL ACADEMY (Skills, Drills & Values Curriculum) | Tournament Championship Games | |
| 07:30 – 10:30 PM | Silicon Valley Tech Leagues | Adult Open Gym Pickup Runs | Private Facility Rentals ($225/hr) |
The Realistic $42k Cleaning Solution (Solving the $312,000 Error)
The previous AI plan accepted an astronomical $\$1,000/\text{day}$ ($\$312\text{k}/\text{yr}$) cleaning cost. In commercial reality, an athletic facility maintains pristine competition hardwood through:
Professional service 6 nights/week for restrooms, trash, and locker areas.
Daily on-site staff operation using Court Clean neutral surfactant solution.
Annual professional floor screening and high-traction finish application.
Organizational Chart & Job Descriptions
Full-Time Executive Management, Jack Chew (Athletic Director / Head Coach), Assistant Coaches & Tutors.
Full-Time Executive Management (W-2 Exempt)
Executive Director
Capital Strategy & Corporate Grants
- • Directs $600k founding capital campaign
- • Secures Silicon Valley tech corporate grants
- • Reports directly to Board of Directors
- • Enforces 501(c)(3) legal compliance
Director of Operations
Facility Logistics & Commercial GM
- • Manages 16,500 sq ft physical facility
- • Operates CourtReserve / LeagueApps grid
- • Sells and manages corporate leagues
- • Supervises vendor and cleaning contracts
Head Coach & AD
Jack Chew / Athletic Lead
- • Directs basketball skills curriculum
- • Supervises 4 assistant coaches
- • Primary Child Safety Officer (AB 506)
- • College scout & tournament travel liaison
Part-Time Programmatic & Hourly Staff (W-2 Non-Exempt)
$32.00 / hour
13 hrs/wk $\times$ 4 coaches $\times$ 40 wks = $66,560/yr
Run weekday technical drills, court practices, and travel with tournament teams.
$35.00 / hour
15 hrs/wk $\times$ 40 academic wks = $21,000/yr
Manages the mandatory afternoon study hall, STEM tutoring, and NCAA eligibility tracking.
$28.00 / hour
25 hrs/wk $\times$ 52 weeks = $36,400/yr
Handles reception, drop-in check-ins, customer service, and compliance ledgers.
$24.00 / hour
2 staff $\times$ 24 hrs/wknd $\times$ 20 events = $23,040/yr
Runs tournament gate admissions, scoreboards, and emergency floor maintenance.
3-Year Financial Model & Itemized P&L
Empirical Revenue Modeling, True Peninsula Lease Economics, 18% Employer Payroll Drag, and $600k Reserve Strategy.
Consolidated 3-Year Income Statement
| Category & Line Item | Year 1 (Launch) | Year 2 (Growth) | Year 3 (Maturity) |
|---|---|---|---|
| I. EARNED COMMERCIAL REVENUES (OpCo LLC) | |||
| Silicon Valley Corporate Tech Leagues | $307,200 | $330,000 | $355,000 |
| Morning Pickleball Hub (Mon–Fri) | $180,000 | $198,000 | $210,000 |
| In-House Weekend Regional Tournaments | $259,200 | $285,000 | $310,000 |
| Private Rentals & Shooting Clinics | $65,000 | $75,000 | $85,000 |
| Concessions, Apparel & Live-Streams | $42,000 | $48,000 | $54,000 |
| II. PHILANTHROPIC REVENUES (501c3 Foundation) | |||
| Tech Corporate Grants & Matching (Gilead/SVCF) | $125,000 | $175,000 | $225,000 |
| Major Individual Donors & Founding Patrons | $100,000 | $130,000 | $150,000 |
| Gym Wall Signage & Court Naming Banners | $60,000 | $75,000 | $85,000 |
| TOTAL GROSS REVENUES | $1,138,400 | $1,316,000 | $1,474,000 |
| III. OPERATING EXPENSES | |||
| Base Rent (16,500 sq ft @ $2.20/sq ft/mo) | $435,600 | $448,668 | $462,128 |
| Triple Net (NNN) Property Taxes & CAM | $89,100 | $91,773 | $94,526 |
| Utilities (HVAC, Power, Water) | $38,000 | $40,000 | $42,000 |
| Janitorial Contract & Machine Supplies | $42,000 | $44,000 | $46,000 |
| Full-Time Executive Salaries (ED, DO, AD) | $385,000 | $396,550 | $408,447 |
| Hourly Coaching & Tutoring Staff | $147,000 | $152,000 | $158,000 |
| Employer Taxes & Workers' Comp (18% Drag) | $95,760 | $98,740 | $101,960 |
| Youth Travel & Tournament Scholarships | $73,000 | $85,000 | $97,000 |
| Insurance, Legal, Audit & Software | $51,000 | $53,100 | $55,500 |
| TOTAL EXPENSES | $1,329,440 | $1,389,031 | $1,444,421 |
| NET OPERATING CASH FLOW | -$191,040 | -$73,031 | +$29,579 |
Pre-Launch $600k Capital Campaign & Cash Flow Bridge
To ensure solvency during the Year 1 ramp-up, the organization raises $\$600,000$ in founding capital prior to signing the lease:
$345,000
Floors, hoops, academic center
$255,000
Absorbs Year 1 deficit ($191k)
+$29,579
Permanent self-sufficiency
Corporate Pitch Deck & Grant Prospectus
Sponsorship Tiers, Naming Opportunities, and Institutional Foundation Requests.
Arena Naming Rights
$100,000 / yr
- • Exterior building marquee branding
- • Center-court hardwood floor logo
- • 4 corporate league teams per year
Academic Lab Sponsor
$50,000 / yr
- • Exclusive classroom naming rights
- • Branding on 20 Mac workstations
- • Tech employee volunteer nights
National Showcase
$25,000 / yr
- • Logo on travel jerseys & team bags
- • Live-stream tournament badge
- • Fully funds 1 travel roster
Gym Wall Banners
$5,000 / yr
- • 8' x 4' custom high-gloss banner
- • Digital listing on booking app
- • Seen by 15,000+ monthly visits
Institutional Foundation Grant Pipeline
$75,000 Request
Education equity & youth tutoring support.
$25,000 Request
Organized amateur sports travel for youth.
$25,000 Request
Youth character leadership & sportsmanship.
$50,000 Request
Corporate community impact & employee matching.
Organizational & Programmatic Charter
The Binding Legal Compact Protecting Investor Capital, Student-Athletes, and Charitable Integrity.
Corporate Governance & Fiduciary Compact
- • Board Majority Independence: The Board of Directors shall maintain an independent majority with zero personal financial interest in vendor contracts or leases.
- • Treasury Reg § 53.4958-6 Compensation Review: All executive compensation is formally authorized by the independent board using localized San Mateo County comparability surveys.
- • Commercial Surplus Lock: 100% of net profits generated by commercial facility operations are legally locked to fund the Youth Academy and Travel Fund. Zero private equity or dividend extraction.
Student-Athlete & Scholarship Covenant ("No Study, No Run")
- • 100% Free Guarantee: No athlete shall ever be charged registration dues, court fees, uniform costs, or travel expenses.
- • Mandatory 90-Minute Study Hall: Student-athletes must attend structured homework sessions with paid W-2 tutors prior to entering court practices.
- • Academic Accountability: Athletes must maintain a minimum 2.75 cumulative GPA to remain on travel rosters. Remediation tutoring is provided for those needing support.
"Morals, Manners & Character" Code of Conduct
- • Manners on the Hardwood: Zero tolerance for referee technical fouls, trash-talking, or unsportsmanlike conduct. Mandatory clean bench policy after every game.
- • Ambassadors of San Mateo: Enforced travel dress codes and respectful engagement with hotel and tournament staff on national trips.
- • 20 Hours Civic Service: Every team must execute at least 20 hours of local community service per season (coastal cleanups, food bank sorting, peer reading).
California AB 506 Child Safety & Travel Mandates
- • Live Scan Verification: Mandatory DOJ/FBI fingerprint registry clearance before any adult steps onto the court or enters a team vehicle.
- • The "Rule of Two": Zero isolated 1-on-1 contact with minors. Two background-checked adults must be present at all times.
- • Direct Vendor Payment: No raw cash travel stipends; all travel (airfare, vans, hotel blocks) is paid directly through corporate accounts with itemized receipts.
Board Ratification & Executive Signatures
Jack Chew
Founder & Athletic Director
Independent Director
Community Advisory Director
Board Secretary
Chew On This Basketball non profit Corp
Coach Jack Chew's Action Roadmap
Clear, prioritized checklist for Coach Jack Chew: California Form SI-100, the complete IRS Form 1023 filing package for Gina Bautista at LegalZoom, board governance solutions, and opening the corporate bank account.
CA Entity Number
B20260111648
Filed March 5, 2026File California Statement of Information (Form SI-100)
California law mandates that every newly registered nonprofit file Form SI-100 within 90 days of incorporation to register its executive officers.
Ask Gina Bautista if LegalZoom files this, or submit it directly online in 10 minutes.
IRS Board Independence Solution
While California allows 1 director initially, IRS Form 1023 scrutinizes single-member boards to prevent private inurement. The recommended solution for Jack:
Jack Chew
Founder, CEO & Athletic Director
Independent Director 1
Local Educator / School Administrator
Independent Director 2
Youth Sports Parent / Community Leader
With 2 independent votes, the board can legally approve Jack's coaching salary under Treas. Reg. § 53.4958-6 without IRS challenge.
Ready-to-Send Email to Gina Bautista
Senior Non-Profit Strategist at LegalZoom • Pre-filled with all Form 1023 inputs
San Mateo County Non-Profit Bank Account Dossier
Exact physical paperwork folder Jack needs to take into Chase, Wells Fargo, or Bank of America
Stamped Articles of Incorporation
Official Secretary of State file-stamped copy (Entity #B20260111648, March 5, 2026).
IRS EIN Letter (CP 575)
Official 9-digit Employer Identification Number notice issued by the IRS.
Filed Form SI-100
Proof of filing Statement of Information showing Jack Chew as registered CEO.
Bylaws & Banking Resolution
Signed Corporate Bylaws and resolution designating Jack Chew as authorized signatory.
Government Photo ID
Jack Chew's valid California Driver's License or US Passport.
Initial Opening Deposit
Check or cash ($100–$500) to activate the corporate checking and savings accounts.
Complete State & Federal Compliance Roadmap
| Stage | Agency | Filing / Document | Fee | Timing / Trigger |
|---|---|---|---|---|
| Step 1 | CA Secretary of State | Form SI-100 (Statement of Information) | $20 | Within 90 days of March 5, 2026 |
| Step 2 | Internal Revenue Service | IRS Form 1023 (via Pay.gov) | $600 | In progress with LegalZoom |
| Step 3 | Local Commercial Bank | Non-Profit Checking Account | $0 | Immediately upon gathering dossier |
| Step 4 | CA Franchise Tax Board | Form FTB 3500A (State Tax Exemption) | $0 | Upon receipt of IRS 501(c)(3) Letter |
| Step 5 | CA Department of Justice | Form CT-1 (Registry of Charitable Trusts) | $25 | Within 30 days of receiving funds |
| Step 6 | CA DOJ Live Scan | AB 506 Youth Fingerprint Clearances | ~$45/ea | Prior to coaches leading minor sessions |
