Nonprofit as sandman says isn't really the issue here. I've posted before about the subtle differences and meanings of a nonprofit corporation, tax exempt, and public charity. Any of above can make money but it is just the organizations responsibility to spend it wisely and be held accountable. Public trust issues. We just filed our 2009 papers and I can say we made very little and just donated $500 of what we did back to Cainhoy School and their 'Tiger Buck Store'. We are a public charity by choice, nonprofit and tax exempy under 501c(3). Not saying that to gain any recognition as it is in our mission and values: IT IS EXPECTED, but to point out that you should consider a clubs charter, mission, or values when registering your child (if that is important to you).
I will say I find it odd that some clubs put noncompete clauses on coach contracts if it is 'all about the kids'? That is a question I would ask of your DOC. Can your great coach go over there and help a second set of kids on their day off ? If not, ask why. Protect competitive advantage?, establish differentiator?, worry it will lose you kids? I am very pleased to say we tell our trainers they are welcome to work with whatever club or kids they like as long as they honor our agreement.
I can think of many other telling questions that would tell me a lot about an organization without needing to look at their tax status or incorporation papers (if they are available). Seems to me actions speak louder than words so just check out teh good work your club does whether building fields, donating 20K to the town, or providing scholarships for needy before rushing to judgement on their motive.