Why do some Incorporate???

[Titchou]

That's what I said. The threshold for non member income is $1000. That includes any donations from non members, rental income from non members, investment income, etc. However, if the board votes to "set aside" that income for qualifying items such as mortgage principal payments, building repairs (future roof, boiler, etc)etc, then that income can be exempt from federal taxes. Since each state has varying requirements for such organizations, I am not addressing that...only federal, which really is the more testy mine field. And I am addressing only NPC organizations, not BGLOs, NIC, or others....as I do realize that some of them are organized differently. And getting into HCs, some are 501 C 2's which opens another can of worms since the IRS has some interesting limitations on year end surplus (not profit as they are "non" profits) and some are 501 C 3's, which are the few who have historical houses and open part of them to the public, which is also a very interesting way to go. I spent a great deal of time one cogitating on how to do that with our most historical house and never could get past the idea of having random people going thru a sorority house. Too many bad vibes there so we just dismissed that idea! That particular house really didn't need the money anyway.