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    PIman's Avatar
    PIman Posts: 1, Reputation: 1
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    #1

    Jun 4, 2008, 08:32 PM
    Social Club activities
    I am a member of a 501(c)7 organization (social club). We are hosting an event for a charitable organization in which we are providing everything; food, place, etc. Is this proper since it does not truly provide for the benefit of the members?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Jun 5, 2008, 07:07 AM
    It shouldn't be a problem. Presumably the members benefit because they want to support this charity. There is a downside, however - it appears this event is being funded out of your club dues, but since the club members can not deduct the portion of their dues that is funding this event they are losing out on a potential tax break. Would be better for the members to make contributions directly to the charity for the food costs (which I assume is a501(c)(3)) so that they could deduct their contributions.
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