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This document outlines our application for 501(c)(7) tax-exempt status as a private social club. The application process is complex and requires careful preparation.
Application Overview
$600
Application Fee
6-12
Months Processing
501(c)(7)
Target Status
Organizational Documents
- Articles of Incorporation
- Bylaws
- Mission Statement
- Board member information
Financial Information
- 3-year budget projections
- Current financial statements
- Revenue sources breakdown
- Expense categories
Operational Details
- Member benefits and activities
- Facility information
- Event calendar and programming
- 65% member income rule analysis
Supporting Documentation
- Sample activities documentation
- Member testimonials
- Community impact examples
- Legal compliance verification
Application Timeline
1
Preparation
2-3 months- • Gather all required documents
- • Complete financial projections
- • Prepare supporting materials
- • Legal review of application
2
Submission
1 month- • Submit Form 1024 to IRS
- • Pay application fee ($600)
- • Receive confirmation letter
- • Begin waiting period
3
Review Process
6-12 months- • IRS initial review
- • Possible requests for additional information
- • Respond to IRS inquiries
- • Maintain compliance during review
4
Approval
1 month- • Receive determination letter
- • Begin tax-exempt operations
- • File required annual reports
- • Maintain compliance records
Key Requirements
- • 65% of income must come from members
- • Organized for pleasure, recreation, and social purposes
- • No private inurement to members
- • Limited public access and activities
- • Proper governance structure
- • Compliance with state nonprofit laws
Benefits of 501(c)(7) Status
- • Exemption from federal income tax
- • Potential state tax exemptions
- • Enhanced credibility with members
- • Simplified financial reporting
- • Protection of member privacy
- • Eligibility for certain grants
This application requires careful attention to detail and compliance with IRS regulations. We recommend consulting with legal and tax professionals throughout the process.