Why are private country clubs allowed "non profit" status....!

This was the first example article I found after I discovered this non-profit factoid.

I'm sure there are other examples.


But WTH? (I'm hoping this can be a good bipartisan discussion here for a change).

This isn't right, is it? again, WTH?
____________
-Dave #2


3.2.0-33

This is a very complex issue in the UK. It's all down to something called "Mutual Trading", and is usually used to gain various tax exemptions. Political parties are allowed to be non profit organisations by HMRC as the funds generated are used for campaigning. In my view, and that of many others, private Golf Clubs should not be allowed to avoid taxes in this way.

Golf Clubs

General

Tax relief

This was the first example article I found after I discovered this non-profit factoid.

I'm sure there are other examples.


But WTH? (I'm hoping this can be a good bipartisan discussion here for a change).

This isn't right, is it? again, WTH?

Non profit organisations used to be only those that benefited or gave a service to the general public. Amnesty International, Oxfam, Rotary International, the Red Cross and Red Crescent organizations, UNESCO, World Wide Fund for Nature etc.
One can hardly call an upmarket private golf club one for the general public. Perhaps by legal definition they are NPO's but that is not within the spirit of the intention.

Could it be because the members of Country clubs are also in large part the same people that write the laws?

According to the IRS Publication 557, in the Organization Reference Chart section, the following is an exact list of 501(c) organization types and their corresponding descriptions.

501(c)(1) — Corporations Organized Under Act of Congress (including Federal Credit Unions)
501(c)(2) — Title Holding Corporation for Exempt Organization
501(c)(3) — Religious, Educational, Charitable, Scientific, Literary, Testing for Public Safety, to Foster National or International Amateur Sports Competition, or Prevention of Cruelty to Children or Animals Organizations
501(c)(4) — Civic Leagues, Social Welfare Organizations, and Local Associations of Employees
501(c)(5) — Labor, Agricultural, and Horticultural Organizations
501(c)(6) — Business Leagues, Chambers of Commerce, Real Estate Boards, etc.
501(c)(7) — Social and Recreational Clubs
501(c)(8) — Fraternal Beneficiary Societies and Associations
501(c)(9) — Voluntary Employee Beneficiary Associations
501(c)(10) — Domestic Fraternal Societies and Associations
501(c)(11) — Teachers' Retirement Fund Associations
501(c)(12) — Benevolent Life Insurance Associations, Mutual Ditch or Irrigation Companies, Mutual or Cooperative Telephone Companies, etc.
501(c)(13) — Cemetery Companies
501(c)(14) — State-Chartered Credit Unions, Mutual Reserve Funds
501(c)(15) — Mutual Insurance Companies or Associations
501(c)(16) — Cooperative Organizations to Finance Crop Operations
501(c)(17) — Supplemental Unemployment Benefit Trusts
501(c)(18) — Employee Funded Pension Trust (created before June 25, 1959)
501(c)(19) — Post or Organization of Past or Present Members of the Armed Forces
501(c)(21) — Black lung Benefit Trusts
501(c)(22) — Withdrawal Liability Payment Fund
501(c)(23) — Veterans Organization (created before 1880)
501(c)(25) — Title Holding Corporations or Trusts with Multiple Parents
501(c)(26) — State-Sponsored Organization Providing Health Coverage for High-Risk Individuals
501(c)(27) — State-Sponsored Workers' Compensation Reinsurance Organization
501(c)(28) — National Railroad Retirement Investment Trust
501(c)(29) — Qualified Nonprofit Health Insurance Issuers (Created in section 1322(h)(1) of the Affordable Care Act)

So your local bridge club or your local model railroad club or your local computer users group or horror upon horror the local country club is a 501(c)(7)!

So your local bridge club or your local model railroad club or your local computer users group or horror upon horror the local country club is a 501(c)(7)!

Quite correct. But obviously as can be seen, this also applies to multi million dollar private golf clubs. They are not breaking the law, but they are simply using it to their advantage because they can. There is of course a very simple answer isn't there?

Amend the rules so that Tax reliefs are only allowed under category 501(c)(7) to those with a turnover of less than $1000 a year. But of course as been already alluded to, those that make the tax laws have no interest in doing that as most are probably members of these upmarket clubs.

It is right that this should be highlighted, but don't expect any changes soon!

Im willing to bet that there are some on here who would say that our own GPU user group shouldnt be tax exempt.
____________

Yes they should, and quite rightly too.

Anyone want to argue?????

Yes they should, and quite rightly too.

Anyone want to argue?????

I think most folks think of not for profits as liberal "help the poor" shoestring budget organizations that operate out of rented space in a dingy part of town.

Clearly this isn't always the case