Nonmember income of tax-exempt social clubs - What is it?

If a member of a social club pays for a guest’s expenses, that income is not nonmember income that the club must generally report on Form 990-T PDF. If, however, the guest pays for his or her own recreation or food, the income received from the guest must be reported. The responsibility of demonstrating that a nonmember is a guest falls on the membership organization.  Thus, the club should maintain adequate books and records that demonstrate whether a person is a guest or a nonmember.

Additional information

• Nonmember income - effect on tax-exempt status