Tax Exempt Clubs (USA)

Frank Whiteley wrote:
Greg Arnold wrote:
Fox Two wrote:
Our club is hoping to join the list of clubs in the USA who are
501(c)(3) tax exempt. My question is: why isn't the SSA a 501(c)(3)
organization, and why aren't all SSA clubs tax exempt? It would seem
to be an obvious way to grow revenues!

All club dues would be a tax write-off, and all donations could be
deducted as well! Am I missing something?

F2

There is a difference between an organization that is tax exempt (no tax
on its income), and one to which people can make deductible donations.
Any 501 organization falls into the first class, but to fall into the
second class you must be a 501c3.

The SSA is a 501c3 (charitable) organization, and so donations (such as
to the Eagle Fund) can be deducted. It is hard to make a club fit under
501c3 -- more likely it would fall under 501c7 (club for pleasure or
recreation). In any event, whether c3 or c7, you don't get to deduct
dues, because you are getting something in return for your money. If a
c7, you don't get a deduction for donations, but there is no tax on
income (i.e., no tax on dues).

So there is only one reason for a club to file the necessary paperwork
with the IRS -- to escape tax on its income from dues. In other words,
there is no free lunch!

Actually, this is quite inaccurate.

Actually, it is perfectly accurate!


Some of the well known 501c(3) SSA Chapters include Texas Soaring
Association, Greater Houston Soaring Association (president David
Coggins will be talking during the club track Friday afternoon at the
convention), Soaring Club of Houston, Blue Ridge Soaring Society, St
Louis Soaring Association, Willamette Valley Soaring Club, Tucson
Soaring Club, Harris Hill Soaring Corporation, Shreveport Soaring Club,
and most recently Central Indiana Soaring Society. Other chapters have
501c(3) foundations that operate gliderports, AirSailing Inc, and
Tidewater Soaring Foundation (used by Tidewater Soaring Society).

Any of these get their c3 status in the last couple of decades?


Snow's getting deep here in Colorado.

Frank Whiteley
SSA Clubs & Chapters Committee
SSA Governor Colorado