If you spend a lot of time hanging out in the nonprofit world, like the ioby team, you’re likely familiar with the term “501(c)(3).” This is the Internal Revenue Service’s code for tax-exempt, nonprofit organizations like charities and foundations.
While you might not be as familiar with the classification 501(c)(7), chances are good that you’re a member of one. 501(c)(7) organizations are also tax-exempt (generally speaking), but instead of existing to serve charitable goals, they are “organized for pleasure, recreation, and other nonprofitable purposes.” (Hence why they’re often called “social clubs.”) So, while the Red Cross, for example, is a 501(c)(3), the national women’s social group Theta Phi Alpha Fraternity is a 501(c)(7). Crucially, the 501(c)(7) organizations that you’re likely a part of are run for the benefit of members, and do not pursue a profit.
Other types of 501(c)(7) social clubs include:
– Amateur sports clubs
– Supper clubs
– Homeowners or community associations
– Country clubs
– Clubs for hobbyists, like model railroaders and gardeners