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General Category => Homebrew Clubs => Topic started by: mikeypedersen on February 11, 2010, 06:28:11 PM

Title: Club Incorporation As A Non-Profit
Post by: mikeypedersen on February 11, 2010, 06:28:11 PM
Our club is trying to incorporate as a non-profit....Are there any large warnings or pitfalls anyone can warn us about who has been through this process before?
Title: Re: Club Incorporation As A Non-Profit
Post by: beerocd on February 11, 2010, 06:43:24 PM
Our club is trying to incorporate as a non-profit....Are there any large warnings or pitfalls anyone can warn us about who has been through this process before?
.
I'm not saying don't - but why? The paperwork and the cost associated with it is gonna suck. Unless you have a CPA as a member/volunteer. What's the big picture though?
Title: Re: Club Incorporation As A Non-Profit
Post by: mikeypedersen on February 11, 2010, 06:51:01 PM
It's a $50 fee and the cost is $25 a year going forward.  It's a Liability issue. If someone were to so something foolish like overindulge without a safe way home, and then cause some damage whether to themselves or someone else, the organizers or directors of the club could be held liable.  Hopefully nothing like that ever happens, but better to be prepared than caught with your pants down.
Title: Re: Club Incorporation As A Non-Profit
Post by: dbeechum on February 11, 2010, 07:20:30 PM
Fortunately, we have a CPA in our group who volunteered to walk us through everything. Made the whole process a relative breeze.

The thing to make sure is that you're going for the non-charitable np status.. 501 c 7 I believe is what we are. And make sure your appointed treasurer stays up on his work to annual file the paper work that says "Nope, we didn't bring in too much revenue this year"

As to why: for us it was liability shielding, tax shielding and oddly enough.. a number of groups out there seem to be more willing to work with you if they see that you're enough a part of the system to have jumped through their hoops and aren't just a bunch of quasi legal 'shiners looking for an excuse to party in the woods.
Title: Re: Club Incorporation As A Non-Profit
Post by: dontblake on February 11, 2010, 08:08:15 PM
Thanks Drew!   That is the exact sort of guidance that we were looking for.
Do you think that the AHA would be willing to assemble a pamphlet or whatnot that would guide a club through all the necessary steps for clubs who want to provide some sort of legal shielding, etc.   Obviously things would vary from state to state, but since it seems that your club has already broken trail, it might be a relatively straightforward thing to do to get a handy-dandy guide thrown together for the rest of us.

Thanks again
Title: Re: Club Incorporation As A Non-Profit
Post by: dbeechum on February 12, 2010, 12:02:54 AM
Do you think that the AHA would be willing to assemble a pamphlet or whatnot that would guide a club through all the necessary steps for clubs who want to provide some sort of legal shielding, etc.   

I think we actually started on something. Let me check and then pick it up if it's not there.
Title: Re: Club Incorporation As A Non-Profit
Post by: mikeypedersen on February 12, 2010, 01:59:13 AM
That would be really cool! Thanks!
Title: Re: Club Incorporation As A Non-Profit
Post by: Kaiser on February 12, 2010, 02:58:43 AM
So  if my club is a non profit as well, are my dues tax deductible?

Kai
Title: Re: Club Incorporation As A Non-Profit
Post by: tygo on February 12, 2010, 03:15:09 AM
So  if my club is a non profit as well, are my dues tax deductible?

Kai

Short answer is no.  Not-for-profit is not the same as a charitable organization (501(c)(3)).  Drew posted above that the status of his club was 501(c)(7).

Here's the IRS pub if you're really interested:

http://www.irs.gov/pub/irs-pdf/p526.pdf

Table 1 on Page 2 pretty much spells it out.

You give to the Red Cross and it's deductible.

You give to the fully legal 'shiners looking for an excuse to party in the woods it's not.

Title: Re: Club Incorporation As A Non-Profit
Post by: Kaiser on February 12, 2010, 05:09:58 AM
Short answer is no.

Just