501(c)7 vs. 501(c)3

After hearing some initial comments about the proposed not-for-profit status change for Star City Golf Course, I felt it necessary to help clarify the advantages of becoming a 501(c)7 organization and also, why we chose this status over other categories.

There are many advantages to becoming a 501(c)3 not-for-profit organization. Mainly, that donations to said organization may be deducted for tax purposes by the donor. After much research and consultation, it was determined that, in Star City Golf Course's current form - and without a drastic overhaul of our mission and day-to-day operation and activities - obtaining a 501(c)3 status would be impossible. (See IRS (c)3 requirements HERE)

En lieu of 501(c)3, it has been the decision of the board to propose organizing as a 501(c)7, a common structure for non-profit golf courses. This too has financial advantages. Although donations to Star City Golf Course would remain ineligible for tax exemption, responsibility to pay income taxes by the course would drop.

I hope this helps.

To read more about 501(c)7 - please follow this LINK to the IRS publication.

Proposed Bylaws

Below you will find the newly drafted bylaws which will be voted on at our annual members meeting in March.

These bylaw changes are a necessary step in obtaining our 501 (c) 7 status.

Because of their length, please review them here digitally, prior to the meeting. This will save time and paper at our meeting.

http://www.scribd.com/doc/26906321