There are concerns that the local flavor of the tournaments would be diminished as part of the effort. The tournament has made money every year under the leadership of Mr. Flory. It has given about 4.25 percent of its net revenue annually to charity, according to Form 990s filed by the group with the IRS for 1995 to 1998. The move from public charity to supporting organization is more than a bland IRS tax distinction. It highlights the thorny role of corporate sponsorship at sporting events that are the lifeblood of many charities.
Most businesses consider sponsorships of big sporting events an advertising cost.
Yet the same activity, from a nonprofit perspective, is exempt from taxes. Information returns, or Form 990s, filed with the IRS show that as tournament revenue increased each year from 1995 to 1998, expenses rose by similar percentages. Other costs include food, facility maintenance, construction, insurance, printing and administration. The Cincinnati Enquirer , a Gannett Co. Inc. newspaper.