It’s the 12 Days of Ballotpedia! Your gift powers the trusted, unbiased information voters need heading into 2026. Donate now!
501(c)(7)
501(c)(7) is an Internal Revenue Service (IRS) tax exemption status that applies to social clubs "organized for pleasure, recreation and other similar nonprofitable purposes."[1] Social clubs are generally composed of members that pay dues or fees. Since individuals can participate in recreational opportunities outside of social clubs, the 501(c)(7) status allows members to engage in club activities without incurring an additional cost. These organizations may not discriminate on the basis of race or religion, but they may restrict membership to individuals of a particular religion in the interest of furthering religious education or practice.[2]
501(c)(7) organizations include country clubs, yacht clubs, fraternities and sororities, hunting and sporting clubs, hobby/interest clubs and cultural clubs.[1]
Unlike other 501(c) organizations, 501(c)(7) groups are taxed on passive income such as dividends and investment interest.[2]
Examples
- New York Athletic Club (New York, N.Y.)
- Desert Mountain Club Inc. (Scottsdale, Ariz.)
- Delta Delta Delta (Arlington, Texas)
- Zeta Tau Alpha Fraternity (Indianapolis, Ind.)
- Boca West Country Club (Boca Raton, Fla.)[3]
See also
External links
Footnotes
- ↑ 1.0 1.1 Internal Revenue Manual, "Chapter 76. Exempt organizations examination guidelines, Section 16. Social and recreational clubs - IRC §501(c)(7)," accessed September 18, 2015
- ↑ 2.0 2.1 IRS.gov, "C. Social clubs - IRC 501(c)(7)," accessed September 18, 2015
- ↑ National Center for Charitable Statistics, "Organizations by IRS subsection 501(c)(7), accessed September 24, 2015
| |||||||
