Our club’s exec board is trying to figure out which non-profit legal status to pursue. 501(c)3 is educational (donations are tax deductable, but need to be earmarked for certain activities) or 501(c)7 (a club).
How does everyone else do it? Both have pros/cons, curious about the administrative responsibilities with both. Is there an option #3 which we aren’t considering?
Thanks!
I have been through this with a couple of clubs. Our local tri club was set up by an attorney/accountant member and we are 501(c) 7, a club. It is virtually impossible to have a sports club qualify for 501(c)3. Teaching people about sports is not considered “educational”, but recreational. Of course it is a lot more complicated than that, but I have never heard of a “Club” qualifying as a Charity.
Ditto. I guess it can chage a bit state to state - but the costs will far out weigh any savings. But, I have not heard of any club ever having to pay any tax on anythign at the end of the year to the Fed or the States.
Our collegiate team is 501(c)3 for obvious educational reasons.
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