[Alexandria Radio Club Reflector] Link describing big differences between 501(c)3s and (C)7s

[Rich Adamy]

Thanks James

I suggested the Alexandria Radio Club seek 501c7 status and form a parallel
organization that is a 501c3 to take donations. grants, etc.

Becoming a 501c3 requires  a major re-write of the club's Articles of
Incorporation.  Seeking 501c7 requires no changes.

I am a CPA by profession, so I have a fair amount of knowledge about this.
I handle the tax returns for 5 501c3s and another 5 501c7s.

Rich, KA4GFY

On Mon, Aug 11, 2025, 19:09 James Carlisle <carlisja at gmail.com> wrote:

> Excellent answer.   I am the treasurer of 2x 501c3 and 1x 501c7.   I use a
> 51%  rule to be well over the line for initial determination.    The
> advantage of a c3 is that you can donate to other nonprofits.  A c7 will
> participate in political activities.
>
> A c3 might donate radios, time, and other equipment to Boy Scouts.
>
> Ac7 might lobby for changes in the HF frequencies available to amateur
> radio.
>
>
> James Carlisle
> (703) 595-6360
> --
> "It was exciting, and funny later, but nerve-racking at the time --
> adventures suck when you're having them"
>      - Neil Peart, Roadshow
>
> ------------------------------
> *From:* Michael Bartlett <pyrenees109 at gmail.com>
> *Sent:* Monday, August 11, 2025 6:20:47 PM
> *To:* Joe K <joek at 26xx.org>
> *Cc:* ki4bxu at mac.com <ki4bxu at mac.com>; carlisja at gmail.com <
> carlisja at gmail.com>; treasurer at w4hfh.org <treasurer at w4hfh.org>;
> alexandriaradioclub at mailman.qth.net <alexandriaradioclub at mailman.qth.net>
> *Subject:* Re: [Alexandria Radio Club Reflector] Link describing big
> differences between 501(c)3s and (C)7s
>
> I am not sure what the original question is but the public funding test
> for a 5013c is 33 1/3% of funds must come from public sources and no single
> source can exceed 2% with the exception of Federal, State, and Local
> grants. So a 5013c needs donations from companies, Individuals, or grants
> of at least 33 1/3 of revenue per year to maintain its IRS status after the
> first 5 years of formation.
>
> For a 501c7, the rule is 35% of funds can come from non members and a
> limit of 15% for non members being charged to use member facilities.
>
>
> On Mon, Aug 11, 2025, 6:10 PM Joe K <joek at 26xx.org> wrote:
>
> Are donations considered grants? Also as a c3 aren’t we required to spend
> our money in a way that benefits “the mission”? I know this was a
> consideration for a couple other orgs I’ve been a part of in the past for
> doing “company events” for the employees.
>
> -Joe K
>
> Sent from Proton Mail for iOS
>
> On Mon, Aug 11, 2025 at 18:06, Erik Misavage via AlexandriaRadioClub <[
> alexandriaradioclub at mailman.qth.net](mailto:On Mon, Aug 11, 2025 at
> 18:06, Erik Misavage via AlexandriaRadioClub <<a href=)> wrote:
>
> > Rich Morani is the current treasurer. Treasurer at w4hfh.org.
> >
> > Sent from my iPhone
> >
> >> On Aug 11, 2025, at 5:55 PM, James Carlisle <carlisja at gmail.com> wrote:
> >
> >> 
> >> The short answer is, do we take in more than 50% of our income from
> donations or dues.
> >>
> >> James Carlisle
> >> (703) 595-6360
> >> --
> >> "It was exciting, and funny later, but nerve-racking at the time --
> adventures suck when you're having them"
> >> - Neil Peart, Roadshow
> >>
> >> ---------------------------------------------------------------
> >>
> >> From: alexandriaradioclub-bounces at mailman.qth.net <
> alexandriaradioclub-bounces at mailman.qth.net> on behalf of Erik Misavage,
> KI4BXU via AlexandriaRadioClub <alexandriaradioclub at mailman.qth.net>
> >> Sent: Monday, August 11, 2025 5:12:31 PM
> >> To: alexandriaradioclub at mailman.qth.net <
> alexandriaradioclub at mailman.qth.net>
> >> Subject: [Alexandria Radio Club Reflector] Link describing big
> differences between 501(c)3s and (C)7s
> >>
> >> Income sources are a big factor. For a C3, they rely mainly on public
> grants. For a C7, they mainly rely on dues.
> >>
> >> https://donorbox.org/nonprofit-blog/501c7-vs-501c3
> >>
> >> Sent from my iPhone
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