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Nonprofit Law/Sharing space with a non profit

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Question
I belong to a horse and bull riding club. We have been sharing our space with a local pastor who has been hosting Sunday service with us. Recently the question has come up as too what is the legality of our sharing space with the church? Ie. can we a not for profit entity share our space with the non profit church. what is the law on this as far as maintaining our club seperate from the church.We are located in Oklahoma.Please I hope I have expressed my question coherently as I am pretty Ignorant too this particular topic.

Answer
I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. It appears that your organization is a 501(c)(7) recreational or social organizations at which the IRS writes about at: http://www.irs.gov/irm/part7/irm_07-025-007.html

Even though your organization would be a c7 I will give you the following information.

Those types of organizations may be granted and be able to maintain exempt status easily only if it does not receive more than 35% of its gross receipts from outside its membership and receives no more than 15% of its gross receipts from nonmember use of club facilities. http://www.irs.gov/irm/part7/irm_07-025-007.html#d0e461

If, in fact, your organization is a 501(c)(3) organization, let me know and also let me know the amount of rent that you are receiving and whether you own your space and, if so, whether you own it outright or have some mortgage balance.

Harvey Mechanic, Attorney at Law -
Harvey108@hotmail.com

P.S. This response is intended to be a general statement of law, should not be relied upon as legal advice and does not create an attorney/client relationship.  

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Harvey Mechanic

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I am an attorney and I volunteer time to answer general questions about U.S. Federal income tax issues of nonprofit 501(c)(3) public charities only. Those questions could be about establishing and maintaining legal requirements for such non-profit organizations in the United States, including Internal Revenue service filings and requirements. I will not be working on this free forum to answer questions about Nonprofit's possible unrelated or for-profit businesses or how to fill out forms. This forum is only for general questions about federal tax law, not as the law applies to your specific situation. If you do not make your question public then I will not be spending much of my donated time on answers that would not benefit the public. If you have other questions, please contact me at Harvey108@hotmail.com I will reply from my email. In any case, do not reveal confidential information to me until after I have contracted with you to provide personal legal services. My responses on this forum are intended to be general statements of law, should not be relied upon as legal advice, and do not create an attorney/client relationship. For me to consider your individual situation and how the law applies, I would need to gather extensive information about the situation. To search my previous answers you can do a Google search by "site:allexperts.com/q/nonprofit" without the quotes and then add your search terms before hitting enter.

Experience

I have been practicing law and especially the law of nonprofit organizations since 1990 when I was admitted to the New York Bar and I have maintained my status with the Bar since that time.

Education/Credentials

B.S. Columbia University in New York City, 1970

J.D. (Law Degree) Brooklyn Law School, 1990 -- Cum Laude.


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