As has been stated, there is a need for expert advice.
That being said, I do know that there are different types of non-profit organization categories. While they may all be non-profit, they are not all tax-exempt as regards donations made to them. In the case described above, it appears that the organization’s purpose is to provide assistance to outside parties, in this case the Australian Shepard dogs. So a service to others is being performed. So this organization would be classified as a 501C3.
There is one railroad club around here that is a 501C3. Although I have no way of knowing for sure, I believe that they are in that category because they’ve got their charter paper
I believe I found that info as well on the IRS website. That is one, if not, the only reason to get non profit because if it wasn’t one, it would take a certainly eat a whole in the club funds.
I have not finished reading all of this thread, and I’m not sure I even will, but first off, this statement “rules and regulations on everything from building codes to how many hockey sticks one is allowed to own” , makes me happy to live in the USA - hockey sticks? here they don’t even tell me how many guns I can own.
As to the OP and is puzzling question, I have to ask - why would anyone want to involve the government in their modeling efforts?
Yes, the word “Club” does have some legal conotations, but many modeling groups in this country exist with little or no “sanction” from the government. It is a right we enjoy called free association.
The group I belong to, which admittedly does not have a building, or rent to pay, or a “group” layout, is not incorporated or “listed” with government officals in any way. It is a round robin that meets at members homes on a weekly basis. Membership is by invitation only, there are no dues.
We have great fun running each others layouts, working on each others layouts, and going to open houses and other railfan activities as a group.
The one club I belonged to years ago is incorporated, but only has one business meeting a year, the same guy has been president for nearly 50 years, and they have a layout that has been in Model Railroader five or six times - no politics, little government, just modeling.
I have not finished reading all of this thread, and I’m not sure I even will, but first off, this statement “rules and regulations on everything from building codes to how many hockey sticks one is allowed to own” , makes me happy to live in the USA - hockey sticks? here they don’t even tell me how many guns I can own.
As to the OP and is puzzling question, I have to ask - why would anyone want to involve the government in their modeling efforts?
Yes, the word “Club” does have some legal conotations, but many modeling groups in this country exist with little or no “sanction” from the government. It is a right we enjoy called free association.
The group I belong to, which admittedly does not have a building, or rent to pay, or a “group” layout, is not incorporated or “listed” with government officals in any way. It is a round robin that meets at members homes on a weekly basis. Membership is by invitation only, there are no dues.
We have great fun running each others layouts, working on each others layouts, and going to open houses and other railfan activities as a group.
The one club I belonged to years ago is incorporated, but only has one business meeting a year, the same guy has been president for nearly 50 years, and they have a layout that has been in Model Railroader five or six times - no politics, little government, just modeling
Sorry if I’m not understanding, but the way you described operating as in each person has an area and the other person has to ask their permission to enter creates questions for me. Are you thinking of this as a single layout with a purpose, prototype, and operations concept in mind or do you envision the club as more of a “rent-a-space” with each person doing their own thing in their area, perhaps with some interface standards much like N-trak? If the latter, the perhaps joining an N-trak group is what you’re looking for? The 155 square foot space you described isn’t very large, even by N scale standards for a group/club model railroad, though it could be large enough to keep one or two operators busy.
the layout will be designed and built by everyone in the group, but if it wins a vote each person if they want can operate a certain area on the layout with an interchange near every member border. depending on how many people join other than myself, when it comes to hauling heavy freight, another member can help their fellow group member and double dead a long train to its destination. I would probably assign myself to yard switching and local freight while others assign their own roles. it’s hard to explain it on the computer.
EH? LION did not read this whole thread, so my 2c may have already been said…
BUT…
You do not want to be on the IRS’ radar for any reason whatsoever: If you ask they will look, if you keep your yap shut, they will never know.
Someone recently asked the Attorney General about a point of North Dakota Law, and his reply was “If there is a chance that you will not like my answer, then do not ask the question.”
LION IS a member of a not-for profit organization: He is a monk, living in a monastery. Guess what: NPOs in North Dakota also pay sales taxes. Well, some do and some do not. Hospitals and Schools do not, but churches do. I sell altar wine to churches all across the state, and all must pay the sales tax.
You do not need NPO status for your organization, for you would stil have to file each year, it would just be on a different form. If you are an orginization and you have no income, you would have no tax due anyway, and you can slip under the radar by not filing. You are never going to collect enough in dues to tip you over that boundry anyway. You are never going to put enough money into your orginization that it would make a hill of beans on your own income tax as a deduction.
BOTTOM LINE: DO NOT POKE A STICK IN THE HORNET’S NEST!
There you are Mr. Lion, your opinion count as always.
Do you suggest the future club should discard the not for profit idea because after reading a few great comments from days yesterday, that will be discarded?
LION would discard the idea for now. You are putting the cart before the horse. You get a better view that way, but as a mode of transportation, it does not go anywhere.
Get the club up and running, and once it is stable, then yes, look into it by all means. But remember the words of the LION, and do not poke the hornets nest just for the fun of it.
If you have a business (LION once had a small printing business in his parent’s basement) you can deduct business expenses, but not beyond the income of the business. In other words, you cannot deduct losses from a business that has made no profits. I tried to deduct the value of some equipment that was stolen from me, and all I succeeded in doing was getting tangled up in the IRS. Yes they paid the refund on what I claimed, and then hung a big red flag on my return and came after me later.
LION says: Do not bother, the money is not worth the effort.
And thanks for the compliments on my railroad. It occupies 648 square feet, (and believe me it is hard to walk on square feet), and is far too small for a club layout even if I do have 14 scale miles of tracks. Besides, I only have one LION and eight trains that must be run on schedule. That is a lot of work for one poor little LION.
You are welcome and i will drop that idea since the only primarily places the club would have bought model train items would probably be Ebay, a local event or shop, or take an unused piece of equipment from our own layout to use on the group layout and donations would be allow at the club if we should agree to have an open house. I’m thinking of starting a small business, going around collecting leaves in the fall next year to earn some extra cash.
I’m sorry that Mr. Lion cannot run all the trains at once. Maybe he should takeover the railroad and run the trains the way he wanna.