The women's club is organized in a golf and country club development. Our gross income ranges from $10,000 - 20,000 per year, raised by dues, housetours, cookbook sale etc. Almost all the money coming in is donated to charities by F/Y end. Are we required to file for nonprofit status - if so Form 1023 or 1024? Would we then be considered a separatre entity and be expected to pay rent when using the facilities at our clubhouse (may be a legal question)?
I'd need more information, but it looks like a social club more than a charitable organization, so you'd go for Form
1024. As far as paying for using the clubhouse the question is, separate from what? Normally if you don't have to pay rent for it now, setting up a nonprofit organiztion shouldn't change that. Stu
But, is it REQUIRED?
Could they be a member of the General Federation of Women's Clubs? See:
-- Drew Edmundson, CPA Cary, NC
"Gil Faver" > more than a charitable organization, so you'd go for Form
All I can tell you is that the regulations, in 26 C.F.R. §
1.501(a)-1, say, "An organization, other than an employees' trust described in section 401(a), is not exempt from tax merely because it is not organized and operated for profit. In order to establish its exemption, it is necessary that every such organization claiming exemption file an application form as set forth below with the district director for the internal revenue district in which is located the principal place of business or principal office of the organization." I have a recollection of seeing guidelines that have some dollar limitations - e.g. the filing is only necessary if gross receipts are more than $15,000 in any one year or more than $5,000 on average. But I haven't seen that recently and didn't find it when I went looking. Stu
I suppose it could. If the primary purpose of the club is to support (c)(3) charities, that could qualify as an exempt purpose. On the other hand if the primary purpose is to play golf and socialize, and charities are an incidental beneficiary, they may not. Stu
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