Many junior golf programs operate under a non-profit organization or have formed one in order to more effectively serve the youth in their program...why do they do this and what are the benefits or drawbacks? 

BENEFITS

• If your nonprofit is granted tax-exempt status under 501(c)(3) of the Tax Code, your corporation will be exempt from payment of federal corporate income taxes. With federal income tax rates at between 15% to 34% this can amount to quite a tax savings.

• A corporation's life is not dependent upon its members. A corporation possesses the feature of unlimited life. If an owner dies or wishes to sell their interest the corporation will continue to exist and do business.

• Non-profits may be eligible to receive lower postal rates on some bulk mailings.

• Nonprofits also receive the same limited liability protection as for profit companies. This means that directors or trustees, officers and members are typically not personally responsible for the debts and liabilities of the corporation.

• A 501(c)(3) nonprofit is eligible to receive both public and private grants. Individual donors can claim a federal income tax deduction of up to 50% of income for donations made to 501(c)(3) groups.

DRAWBACKS
The main disadvantage of forming a nonprofit company is the increased paperwork that is required. Articles of incorporation must be filed with the state, bylaws prepared and meeting minutes must be kept with your corporation’s records. Also, applications for tax-exempt status must be filed at both the federal and state levels.

It is important to remember that nonprofit can not be used to generate profits for the owners and the purpose must confirm to IRS regulations.

For more information on forming a non-profit visit Yahoo's Non-Profit Frequently Asked Questions