Legalities

[Bob Collins]

I need to pick some of your brains about whether or not it is worth while to try to jump through all the hoops to apply for "not-for-profit" status for our new club. We have talked a great deal about it and I am probably the only one who has ever had any experience being involved with such an endevour and I am trying to discourage it "for now".

What are your experiences? I know this only applies to folks on here from the USA and I apologize to my friends from other parts of the world.

Bob

 

[Sir_Prize]

Bob;
I've heard that some State and National Rules/Laws of changed recently. Check with a VFW, Marine Corp. League (the BEST , imo), etc. Any group that is non-profit, they can at least direct you to the place to get the answers. At least that seems the quickest route.

Than again somebody here abouts may have them answers, but remember it may change per state.

Good Luck;
Ken

 

[Bob Collins]

That is part of the problem with this group. They don't quite understand that there are differences, except at the federal level. What they really want is to be made "tax exempt" from paying state sales tax. To go through the federal not for profit drill we are talking exemption from federal income tax, a completely different bag of worms.

I just thought if I could discover here whether or not any train clubs had addressed this situation it might help me sell my folks on the idea to learn the differences I have mentioned here and then try to make a more informed decision.

Thanks very much

Bob

 

[brakie]

Yes, Both clubs where I am a member are non profit groups. If you don't you will pay taxes on your clubs treasury fund,building fund(if any) rainy day funds (if any) or even your pop sales if you do that! By all means get tax exempt!!

 

[Bob Collins]

brakie;

Thanks very much.

I am curious as to whether or not you would give me some sort of idea about how much money you are talking about with your clubs. I would like to be able to relay to my folks that when we reach a certain level of funding we need to take the action to achieve tax exempt status.

Bob

 

[brakie]

Ok, club A has $ 1,433 general fund,$663.00 rainy day funds.Club B has 2,182.00 general fund and $ 988.00 rainy day fund.(Both clubs rounded off to the nearest dollar). Both clubs got the tax exempt at the very begining of organization to save paying any taxes.This is at both the state and federal level.This is not hard to do.Just the routine goverment red tape.I did belong to a club that did not. We had to pay the taxes,the club folded due to running out of funds due to the interest needed paid on back taxes.We foolishly thought we was already tax exempt,as we did not have a for profit club. If there is a attorney in your club perhaps he will help you with the paper work. But,a attorney is really not needed for the paper work.I urge you and your club to do this as soon as possible.

 

[Bob Collins]

Thanks brakie. I appreciate the information and guidance very much. I will get with the club officers and pass this info along to them.

Bob