do your clubs save
- Thread starter ezra
- Start date
D
Deleted member 10829
Guest
We are a non-profit so have to be careful. We have a $20,000 cd in the bank and close to the same in our operating account, and they seem to stay pretty steady. We operate 2 groomers and trade the tractors every 3 years for $12,000 to boot, can't beat it! We trade the tractors in different years, never at the same time.
jim_golding
New member
Given the price of a new or used Tucker, our club saves what we can for a newer Tucker down the road. Being non-profit has nothing to do with how much you save, it has to due whether you distritbute any of the profits to the Officers or other members. In addition there is a max limit of how much you can have as income without paying Federal Tax. It has been bumped up to $50,000 recently.
I don't want to hijack this thread but can you explain this """""Being non-profit has nothing to do with how much you save, it has to due whether you distritbute any of the profits to the Officers or other members""""""
I know nothing about this but the topic has came up before
lookin4snow
New member
I'm no expert either, but this came up at the AWSC Workshop last year. AWSC explained that you can save money through your fundraisers, etc. for purchasing a groomer, a building, maintenance equipment and the like. The issue is that if you are paying officers and others for their time, you are operating much like a business and your tax status changes.
We always keep some amount in savings for when the Tucker breaks (they always do). When we build up enough reserves, we then evaluate what equipment needs we have and discuss purchases. As far as giving back to the community, we certainly do. We give two $250 scholarships each year to a graduating Senior from our High School. Last year we donated $2,500 to our EMS department for the purchase of an Ambulski for snowmobile trail rescues. We also support Blue Ribbon Coalition and ACSC.
We always keep some amount in savings for when the Tucker breaks (they always do). When we build up enough reserves, we then evaluate what equipment needs we have and discuss purchases. As far as giving back to the community, we certainly do. We give two $250 scholarships each year to a graduating Senior from our High School. Last year we donated $2,500 to our EMS department for the purchase of an Ambulski for snowmobile trail rescues. We also support Blue Ribbon Coalition and ACSC.
jim_golding
New member
As a club we are organized as a 501C4 which are more for non-profit social organizations. 501C3 are non-profit charitable organizations. It is harder to organize a snowmobile club as a 501C3. The IRS web site states:
"To be tax-exempt as a social welfare organization described in Internal Revenue Code (IRC) section 501(c)(4), an organization must not be organized for profit and must be operated exclusively to promote social welfare. Pursuant to changes enacted as part of the Taxpayer Bill of Rights 2, the earnings of a section 501(c)(4) organization may not inure to the benefit of any private shareholder or individual. If the organization engages in an excess benefit transaction with a person having substantial influence over the organization, an excise tax may be imposed on the person and any managers agreeing to the transaction."
While I am no lawyer, it is saying that the profits cannot be distributed to shareholders or individuals. So what it is saying, you cannot not give your profits from your fundraisers to members (shareholders). It maybe be possible to have some paid positions like large charities, however I don't know of any clubs that do that.
Think of it this way, how else would a club be able to afford a new Tucker at a cost of over $100,000 with out saving up a fair amount of money? BTW, our club does donate a significant amount of money each year to various organizations and charitable events.
"To be tax-exempt as a social welfare organization described in Internal Revenue Code (IRC) section 501(c)(4), an organization must not be organized for profit and must be operated exclusively to promote social welfare. Pursuant to changes enacted as part of the Taxpayer Bill of Rights 2, the earnings of a section 501(c)(4) organization may not inure to the benefit of any private shareholder or individual. If the organization engages in an excess benefit transaction with a person having substantial influence over the organization, an excise tax may be imposed on the person and any managers agreeing to the transaction."
While I am no lawyer, it is saying that the profits cannot be distributed to shareholders or individuals. So what it is saying, you cannot not give your profits from your fundraisers to members (shareholders). It maybe be possible to have some paid positions like large charities, however I don't know of any clubs that do that.
Think of it this way, how else would a club be able to afford a new Tucker at a cost of over $100,000 with out saving up a fair amount of money? BTW, our club does donate a significant amount of money each year to various organizations and charitable events.
Bullcheater
New member
How much does most of you Minnesota clubs handle paying your gambling/pulltab managers. My former club pays 2% of profits. Board has never mentioned having a savings account. And spends every penny brought in in my 6 months as a member. Does the state or irs ever audit these clubs. I have become very suspicious of unexplained activity. And as a member you have no voice. You have to be a member in good standing for three years" by there approval to run for the board" and board votes every year on your yearly application for membership. If you question them, they vote to drop your membership. This club has only 10 members. left. They saved nothing for groomer repair. They turn it in to state every time it breaks and the state reimburses them? I found this fishy. Active checking account allways has less then $1000.00 in it at each treasurers report. I did not rejion and will not be associated with them.
wow that sounds a bit fishy.we have a treasurer's report every meeting usually the 1st or2nd line item on the agenda in most clubs I have been in.
1 of the clubs I am is has been around for 40 yrs saves nothing has nothing gives it all away to charity and rounds. saves nothing for a rainy day.Drives me crazy it is like every tine we get a few thousand in the bank from working a show they give it away.then when you want money to buy trail stuff or sm gifts to land owners [case of beer etc] people grumble about it DRIVES ME NUTS if things dont change I will be dropping that one next yr.
I would turn your old club in sounds way fishy if they are on the up and up it will be no prob but I know some of the checks the state sends out to clubs can be substantial and the state would be interested to know if that money is going to trips to MEX instead of diesel fuel
1 of the clubs I am is has been around for 40 yrs saves nothing has nothing gives it all away to charity and rounds. saves nothing for a rainy day.Drives me crazy it is like every tine we get a few thousand in the bank from working a show they give it away.then when you want money to buy trail stuff or sm gifts to land owners [case of beer etc] people grumble about it DRIVES ME NUTS if things dont change I will be dropping that one next yr.
I would turn your old club in sounds way fishy if they are on the up and up it will be no prob but I know some of the checks the state sends out to clubs can be substantial and the state would be interested to know if that money is going to trips to MEX instead of diesel fuel