Quote:
Originally Posted by Titchou
They are not tax ecempt. They have to pay sales taxes and income taxes. There are ways to "set aside" funds over $1000 in non member income in order to avoid taxes on that money. And contributions to them are not tax deductible. Trust me on this. I was the chairman of the board of an NPC 501 C 7.
|
501(c)(7) non-profits are tax-exempt. 501(c)(7) refers to a section of the Internal Revenue Code, and whether an organization is tax-exempt under the IRC refers to whether the organization has to pay federal income taxes. (It has nothing to do with deductability of contributions; that's a separate thing.) If an organization qualifies as a 501(c)(7) organization, it generally speaking does not have to pay federal income taxes unless other factors kick in, such as receiving income from non-member sources above a threshhold amount.
Sales taxes are state and local taxes, so the degree to which a 501(c)(7) org will be exempt from them (or exempt from state income tax) depends completely on the degree to which state law or local ordinance provides that.
Threaded Mode
