Employee Social Clubs

[shaywood]

I work for a small organization that has approx 100 employees in 12 locations across our state. Employees can elect to belong to a social club that employees donate $3.00/month toward. This is to purchase things like flowers and small gifts when employees experience hardships, get married, or have a birthday. The money collected is deposited into a local bank account from which the expenses are paid.

Is this type of club required to organize as a nonprofit 501(c)(7) and file returns?

 

[kirby]

No, because per above you are not creating any income. That code applies if you sold stuff (like a bake sale) and generated a profit

 

[shaywood]

Thanks for the response.