Q. What does it take to be a “well-governed” club in the eyes of the IRS? A: Tax-exempt clubs that file Form 990 (Federal Return of Organization Exempt from Income Tax) annually with the Internal Revenue Service (IRS) Part VI, Section B questions 12, 13 and 14
I heard that the club’s tax-exemption is at risk because it permits nonmember events (such as a wedding or golf outing) to be held at the club. Why didn’t your firm tell us? The club’s tax-exemption is not at risk provided that the club acted
This winter, happy couples planning their perfect wedding are reading articles and visiting websites looking for the best wedding venue. Many of these magazines and wedding websites will point toward private clubs. For private clubs, this presents a prime opportunity to make additional revenue, something
As we know, truly private clubs can be exempt from federal income tax on their proceeds. Indeed, most clubs take advantage of this benefit offered by the federal government. Under Section 501(c)(7) of the Internal Revenue Code, a club organized for pleasure, recreation or other
Mere mention of the IRS tends to trigger certain symptoms among club board members: sweaty palms, worried looks, and the overwhelming feeling that, though you’ve tried to do everything right, you still may have done something wrong. That’s O.K. It’s a natural reaction. But, contrary
The Internal Revenue Service (IRS) has been conducting a compliance project with respect to the reporting of investment income by the social clubs exempt from income tax under Section 501(c)(7) of the Internal Revenue Code (IRC). In its Fiscal Year 2011 Work Plan, the IRS’s
This is the fourth article in a special six-part series commemorating the 50th anniversary of the National Club Association. This article from the Dec/Jan 1993 issue of Club Director offers a comprehensive history on one of the most pervasive impositions on private clubs—the issue of dues deductibility and
This article is the third in a special six-part series commemorating the 50th anniversary of the National Club Association. The article appeared in the August 1996 issue of Club Director and it tells the story of one club’s efforts—and an industry’s support—to fight a lawsuit initiated by the Equal
The following is an excerpt from a chapter, authored by William I. Edlund and Brad D. Steele, of NCA’s publication, The Legal Reference Guide for Private Clubs. This handbook is designed to assist clubs with a wide array of legal challenges, ranging from operational matters and
Dear NCA Member, As a benefit of your club’s membership in the National Club Association, we are pleased to provide you with a newly updated monograph for your Club Director Reference Series. The Federal Tax Treatment of Private Clubs is completely updated and contains the most current