Social clubs: Recordkeeping requirements
Social clubs that conduct activities with nonmembers must maintain adequate records. The records should be retained for at least three years from the due date of the organization’s annual return. The records should be in sufficient detail to distinguish one type of income from another (gambling income vs. food sales income) and one type of expense from another. If the organization is a membership organization, the records should also reflect whether the income is from members or nonmembers.
To maintain adequate records, clubs that allow nonmembers to use their facilities must collect and maintain certain information. The information collected for a particular event should include:
- Total number in the party
- Number of nonmembers in the party
- Total charges
- Charges attributable to nonmembers
- Charges paid by nonmembers
- Where a member pays all or part of the charges attributable to nonmembers, a statement signed by the member indicating whether he or she has been or will be reimbursed for such nonmember use and, if so, the amount of the reimbursement.
- Revenue Procedure 71-17
- Social Clubs - IRC 501(c)(7) - EO continuing professional education text article.