1. Placing their Club's 501(c)(7) tax-exempt status at risk; and
2. Becoming an entity that is open to the general public making Club Membership relatively unimportant.  (Why join if I can still use the Club on my important occasions as a non-member?

• 12/21/10 IRS Revokes Club's Tax-Exempt Status - LTR 201111015

The IRS has revoked the tax-exempt status of a social club that operates a golf course because more than 15 percent of the club's gross receipts have come from the use of its facilities by nonmembers.

• 12/03/10 IRS Revokes Exempt Status of Organization That Ran a Golf Course - LTR 201108039

The IRS has revoked the tax-exempt sttus of an organizatin that ran a golf course, finding that the organization's income exceeded the maximum percent allowed under section 501(c)(7).

• 11/24/10 IRS Revokes Exempt Status of Organization That Ran Golf Course - LTR 201107030

The IRS has revoked the exempt status of a membership organization that managed a golf course, finding that more than 15 percent of its income came from making the facility available to the general public.

• 11/01/10  IRS Denies Exempt Status To Sports Club- LTR 201043042

The IRS has denied tax-exempt status to an organization established to support a sports team because the organization does not provide opportunities for face-to-face interaction among its members, and participation in its activities is open to the public, not limited to its members.

• 10/12/10  IRS Revokes Exempt Status of Social Club for Failure to Keep Records - LTR 201040037

The IRS has revoked the section 501(c)(7) status of a social club that counld not show it operated in accordance with its exempt status because it had failed to keep appropriate books and records.

• 10/04/10  IRS Revokes Clubs Exempt Status - LTR 201039036

The IRS has revoked the tax-exempt status of a social club because more than 15 percent of its income came from nonmembers, and it operated as a business by allowing friends and family members to use the facility unaccompanied by a member.

• 09/27/10 Club's Exempt Status Is Revoked - LTR 201038021

The IRS has revoked a club's tax-exempt status under section 501(c)(7), finding that the organization exceeded the gross receipts standard for nonmember income for at least four years.

• 08/16/10 Social Club's Exempt Status Is Revoked - LTR 201032046

The IRS has revoked the tax-exempt status of a social club because its nonmember receipts exceeded 35 percent of its total receipts.

• 07/26/10 Social Club's Exempt Status Is Revoked - LTR 201029038

The IRS has revoked a social club's tax-exempt status, finding that the club failed to keep the required books and records, that some club proceeds inured to the benefit of private individuals, and that the club failed the gross income test.

• 07/19/10 IRS Denies Exemption to Membership Organization - LTR 201028042

The IRS has denied tax-exempt status to a membership organization that pays the funeral expenses of its members, finding that its earnings inure to the benefit of its members and a substantial part of its activities do not further pleasure, recreation, and other nonprofit purposes.

• 06/28/10 Organization Fails Gross Receipts Test, Loses Exempt Status - LTR 201025082

The IRS has revoked the tax-exempt status of an organization described in section 501(c)(7) because it failed the gross receipts test.

• 06/14/10 Social Club's Exempt Status Revoked - LTR 201023063

The IRS has revoked a social club's tax-exempt status, finding that its gross income from nonmembers exceeded the 15 percent limit allowed under section 501(c)(7).

• 04/05/10 Golfing Club's Exempt Status Is Revoked - LTR 201013055

The IRS has revoked a golfing club's tax-exempt status, finding that its gross income from nonmembers exceeded the 15 percent limit allowed under section 501(c)(7).

• 02/23/10 IRS Seeks to Revoke Social Club's Exempt Status for Failure to Keep Adequate Records - LTR 201007071

The IRS has proposed to revoke the exempt status of an organization described under section 501(c)(7), asserting that the club has not kept adequate records to show total nonmember income did not exceed the 15 percent limitation and that existing records indicate the club took in a minimum of 20 percent nonmember income.