RunSignup makes it convenient for sponsoring entities or their authorized representatives (including timers and event management companies) to receive the registration proceeds for races. Either the sponsoring entity or the authorized representative can set up a payment account with RunSignup and receive registration proceeds for a race. However, there are some things you may want to consider before deciding who should receive registrations proceeds for your race as follows:
- The party that receives the registration and other proceeds from your race is the party that will receive the 1099K for the race. There is really no way around this. If you set yourself up to receive payments you will be the party that receives the 1099K
- Any payments that are processed with your payment account must be paid to you. When RunSignup sets up a payment account for you, you are assigned a Merchant Identifier (MID) by our back end processing company. That MID is unique to you or your company. If you insert your payment account as a placeholder to open race registrations the transactions processed while your payment account is in place are under your MID, they will be paid to you and will be added to your 1099K.
- Periodically there are disputes about who “owns” a race. RunSignup does not want to have to pass judgement on these kinds of disputes, but sometimes we have to make a judgement call about continuing to list a race on our site or who owns the list of race participants. When these disputes come up we generally favor the party that has been receiving the proceeds from the race as our race agreement states that they are the owner of the event.
- We are getting ready to implement sales tax collection and remittance on our site. Non-profit entities have exemptions available in some states that reduce or exempt sales tax on proceeds from their events. If a non-profit wants to take advantage of these exemptions where they exist we will look to see whose payment account is set up on the race. If the payment account does not belong to a qualifying non-profit entity any exemptions that may exist for non-profits will not be available to that race.
You should carefully consider these points when deciding whose payment account to add to a race taking into consideration the financial, legal and tax considerations of including your payment account on a race if you are not the legal owner of the race.