Are detecting clubs required to file for non-profit status ?

[deano]

We organized a club about 2 years ago and the founder of the club insists that we need to file for non-profit status. I do not feel that this is necessary as we do not recieve contributions from any outside scources. Does anyone out there have an answer for me ? Thanks

 

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[Tom_in_CA]

I used to be a club president, and we had the "non-profit" paperwork done. I believe it's because ....... if you have a bank account (which we had, in the club's name), that there can be some sort of ID to go with that. So like, even though you're an obvious not-for-profit club, yet the mere fact that a bank account exists, ........ perhaps someone (an auditor, or ....?) could look at that and say that this club has "profitted" somehow (lest how would the money get in there, to begin with?).

But I'm not sure it's necessary though, as in .... legally required, as long as someone was willing to attach a club bank account to their own name and social security #. For example: You can walk into any bank, and open up a saving and checking account in your name, right? The bank is going to HAVE to have a person's name, to attach to the money/account, right? If you tell the bank: "open this account in the name of 'barbie doll collector's club', they're going to ask you "and who are the officer's of the club?" You see how there's a "trail" so that there's a "follow the money" type scenario, if bank accounts were ever abandoned, or if you moved certain dollar amounts that required the bank to trigger certain reporting rules, etc...? Thus they need an officer's info, perhaps social security #'s, etc....

So it is my understanding, that having a non-profit status, gives you an "entity" to attach to such a bank account. Also perhaps having such an ID allows you to use meeting rooms at a local public rec. center or library's meeting room, etc.... because of the same thing: attachment to a specific person or identity.

But I suppose, if you had no bank account, and were simply a bunch of guys who met at a coffee shop or someone's house each month, then no, you would not need a non-profit status, as there is no money involved, no need to have it to get certain public features, etc.... You are simply a bunch of friends who meet. And you can just keep a till (if you had petty cash for purposes of things like membership dues, postage for newsletters, raffle prize purchase $, etc...) you can just keep it at the presidents house, cash-form, in a shoebox, and never need a bank account, etc...