Just a check here- how many of you are club members (any type of horse club or other hobby club) and know if you club has a Federal Tax EID#? At what point do clubs get these numbers? Do they have to have a certain amount of $$ in a bank account or some other requirement? I am helping out with several clubs and organizations and was trying to better understand these things. Thanks to all who can share!!!
I remember having to get non-profit status for a non horse related group, and we did it after we began to fund raise in earnest, say a couple of fundraisers making over a grand each per year, but I don't know if there is some official cut off number.
At work the employee welfare committee uses the social of one of the members and I can make a rough guess that they earn about $3K in snack sales because they refund it in gift cards at Xmas - I worry about the tax ramifications of that, I've made a low key inquiry and they know nothing.
I'd suggest you make a quick call to your tax professional to get an IRS proof answer.
Having been secretary in a riding club, I have limited knowledge but it may be of some help to you. You will need a bank account in which to deposit dues from members and any money that is raised for the club.
The club will have a president, vice-president, secretary, and a treasurer who will take charge of the account and application for the Fed tax #, and the minutes of meetings recorded by the secretary.
To maintain nonprofit status, any monies collected by the club would be used to benefit the goals of the club. Pretty sure you may accumulate any amount of funds, but keeping nonprofit status depends on how the money is used, e.g., educating members, funding an event, etc. (The gift card thing raised by ReSomething sounds sketchy as it implies a for-profit motive, which IRS would frown on)
The secretary's minutes are important as they are a record of the club's activities that support the purpose of the club and the tax-exempt status.
That's all I know....