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The Chip Board Archive 09

A Few Club Tax Questions Clarified

Just to clarify a few points involving our organization:

1) Technically our organization could have been incorporated in any State in the Union. New York was chosen because Eric,our club attorney happened to be located in New York. Our first President Archie Black, as well as other board members, were located on the east coast so I assume this made it easier to conduct club business for everyone concerned.

2) A Corporation once established within a State petitions the Internal Revenue Service for tax exempt status. Inorder to receive tax exempt status certain conditions must be met by the Corporation and approved by the IRS.

3) When "this" Corporation does business in a State other than the State it is incorporated in it is considered a "foreign" corporation within the State it is conducting the business. It is required to obtain certain licenses and meet certain requirements so approval can be granted for business activities.

4) Our club IS NOT an International Organization. We do have members from other countries who we treat with respect and dignity as we should every club member. However, to refer to our club as an International Organization is both assnine and dangerous to our tax exempt status. I know members have meant no harm by refering to us as "International" but "We" should stop doing so. Our membership is international our club is not.

5) All discussion should cease concerning changing our club name. If we were to do that it MIGHT create a situation where we would have to apply again for tax exempt status. At best it would force a review of our status that is REALLY not necessary or in our best interests.

6) It is my opinion if we were to apply for Internal Revenue Code Section 501(c)(3) status now it would probably be turned down. If not, it certainly could be a "battle" royal for Eric probably much worse than the initial "fight".

7) Finally, treat our tax exempt status with the respect it deserves. All chapters should apply for tax exempt status and will probably receive like the Southern Nevada Chapter IRC Section 501(c)(7) status. It is not a big deal and will serve the chapter for what it needs to do in conducting its business.

There is much more that I could discuss but I believe everyone is starting to appreciate the work Eric did for us as well as the importance in retaining our status.

Best, Mr."P"

Messages In This Thread

A Few Club Tax Questions Clarified
HELPFUL POST, JIMBO. grin
Question on item #4...
Re: Question on item #4...
what is our tax exempt status?
Robert, the Club is 501(c)(3) ! vbg
Re: what is our tax exempt status?
Thanks for the information ...
Re: Thanks for your comment ...
>> plezzzzzzzzzzzz let's not turn this ...
Oops ... not in Connecticut anymore ...

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