President’s Message to Members
DCA is classified by the Federal IRS as a 501c7, social organization. It further defines DCA as a Hobby Club. DCA is exempt from paying federal income tax as long as we follow the requirements set forth by the IRS for a 501c7 organization. The IRS stipulates that we must have a limited membership. The limited membership is not about the numbers of members allowed to join.
Below is directly from the IRS.
“To show that your
organization has a purpose that would charac-
terize it as a club, you should submit evidence
with your application that there are limits on ad-
mission to membership consistent with the
character of the club.”
We meet these criteria with the membership application and the purposes of the club set forth in the DCA bylaws.
Below is directly from the IRS.
“Gross receipts from nonmembership
sources. A section 501(c)(7) organization can
receive up to 35% of its gross receipts, includ-
ing investment income, from sources outside of
its membership without losing its tax-exempt
status.”
The above means that DCA must get 65% of its income from the membership. DCA meets the Gross Receipts requirement. We get more than 65% income from membership. The receipts include dues, donations, investment income and other which IRS defines as traditional conducted activities. A traditional conducted activity is our National Specialty.
DCA does not pay expenses to Board members for attending meetings. This is a misconception. AKC is a 501c4 and they are allowed pay their Board members to attend the meetings, which they do. DCA is a 501c7 social organization and we do not pay for Board members to attend meetings.
I hope the above information is helpful.
Carl Holder, President
Dachshund Club of America, Inc.