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General Category => Homebrew Clubs => Club Leadership & Organization => Topic started by: sch21c on February 07, 2016, 08:40:44 pm

Title: 501(c)7 Exemption Form - Activities and Operational Information Section Question
Post by: sch21c on February 07, 2016, 08:40:44 pm
We're in the process of incorporating our club and applying for non-profit status with the IRS under Section 501(c)7.  I'm wondering what clubs that have done this in the past have put down in the "Activities and Operational Information" section of IRS form 1024.  How detailed did you actually get?  Are there any examples you can share?

Thanks,
--Sam
Title: Re: 501(c)7 Exemption Form - Activities and Operational Information Section Question
Post by: mabrungard on February 07, 2016, 09:28:03 pm
Unless your club has a significant income from some sort of charitable event, I haven't found that going to the expense of 501c7 is worth it. Just incorporate in your state to gain the benefits of incorporation. The tax ramifications are probably insignificant.
Title: Re: 501(c)7 Exemption Form - Activities and Operational Information Section Question
Post by: kramerog on February 07, 2016, 10:00:53 pm
What Martin said.

I am in homebrew clubs that are non-profit corporations.  Neither of them have applied with the IRS for recognition of 501(c)(7) status. Both are self-certified as 501(c)(7).
Title: Re: 501(c)7 Exemption Form - Activities and Operational Information Section Question
Post by: sch21c on February 08, 2016, 03:13:50 pm
Thanks for the replies.  Do you file federal returns for your clubs or just file the 990-N even though you haven't filed for tax-exempt status with the IRS?
Title: Re: 501(c)7 Exemption Form - Activities and Operational Information Section Question
Post by: dbeechum on February 09, 2016, 04:59:36 pm
We are 501 c 7 and we file every year, but as long as you're under whatever the mark is (I think currently 50k) you're fine.

I think when we filed, we put together a basic packet of actvities culled straight from our bylaws.
Title: Re: 501(c)7 Exemption Form - Activities and Operational Information Section Question
Post by: sch21c on February 09, 2016, 05:03:23 pm
We are 501 c 7 and we file every year, but as long as you're under whatever the mark is (I think currently 50k) you're fine.

I think when we filed, we put together a basic packet of actvities culled straight from our bylaws.

Thanks Drew.  I think we're going to file for the exemption.  If we don't, I'm confused as to what our responsibility to file federal taxes is and what mechanism we would use.
Title: Re: 501(c)7 Exemption Form - Activities and Operational Information Section Question
Post by: dbeechum on February 09, 2016, 05:04:54 pm
Yeah,  I odn't think it's a bad thing to do and it has the added benefit here at least of showing other governmental groups we deal with (like the park folks) that we're on the up and up and not just a bunch of n'er do wells.
Title: Re: 501(c)7 Exemption Form - Activities and Operational Information Section Question
Post by: kramerog on February 24, 2016, 11:40:48 pm
Thanks for the replies.  Do you file federal returns for your clubs or just file the 990-N even though you haven't filed for tax-exempt status with the IRS?
Just file the form 990N annually unless for a strange reason it doesn't apply because threshold has been exceeded or conducting business activities. "Biz" activities may be taxable.

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Title: Re: 501(c)7 Exemption Form - Activities and Operational Information Section Question
Post by: mabrungard on February 25, 2016, 01:36:58 pm
We are 501 c 7 and we file every year, but as long as you're under whatever the mark is (I think currently 50k) you're fine.

Recognize that the Maltose Falcons are a case in point for clubs that really need 501(c)7 designation since they have a huge fundraiser and the tax ramifications would be dramatic if they didn't have it. But if your club doesn't have a huge income like the Falcons, don't worry about getting 501(c)7.
Title: Re: 501(c)7 Exemption Form - Activities and Operational Information Section Question
Post by: dbeechum on February 25, 2016, 04:14:20 pm
We're not that big - just ~300ish!

I've been on the board since 1999 and one of my proudest achievements is growing the club membership but more importantly, the club treasury to a very stable/safe level.