Examples of unrelated business income tax-exempt social clubs

A tax-exempt social club may receive unrelated business taxable income from the following activities:

• Selling food and beverages to nonmembers
• Selling timber cut from club land
• Accepting advertising in club newsletters or other publications
• Proceeds from a total liquidation of club assets
• Proceeds from a partial liquidation of club assets not meeting statutory reinvestment timeframes

Additional information

• Social Clubs – IRC 501(c)(7) PDF- EO continuing professional education text article