Author Topic: 501(c)7 Exemption Form - Activities and Operational Information Section Question  (Read 657 times)

Offline sch21c

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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

Offline mabrungard

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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.
Martin B
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Offline kramerog

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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).
« Last Edit: February 07, 2016, 03:03:27 PM by kramerog »
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Offline sch21c

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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?

Offline dbeechum

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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.
Drew Beechum - Maltosefalcons.com
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Offline sch21c

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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.

Offline dbeechum

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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.
Drew Beechum - Maltosefalcons.com
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Offline kramerog

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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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Brewers of South Suburbia
Brixie's Brewers
Oak Park Homebrewers

Roger Masson

Improved batch sparge and parti-gyle calculator (v.1.6)

Offline mabrungard

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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.
Martin B
Carmel, IN

BJCP National
Foam Blowers of Indiana (FBI)

Brewing Water Information at:
https://sites.google.com/site/brunwater/

Like Bru'n Water on Facebook for occasional discussions on brewing water and Bru'n Water
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Offline dbeechum

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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.
Drew Beechum - Maltosefalcons.com
- Vote in the AHA GC Election! - http://bit.ly/1aV9GVd  -
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Tap:
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