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Nonprofit Law/501c3 donating to a 501c7 social club


My question is:  can a 501c3 charity donate / contract with a 501c7 social club?   If yes,  would the money donated be counted against the "35%" non-member revenue restriction of the 501c7.   What responsibility would the 501c3 have to in regards as to how the money is used.

How would a "contract" differ?

The 501c7 generates about $15,000 annual from members dues.

Thank you in advance.

The contract would need to specify the use of the funds by the c7 -- that the use was to be solely for charitable, religious or educational activities as would be allowed under section 501(c)(3) of the Code. I have in my profile in my forum at the free service that I offer is only for questions directly related to IRS exempt purpose issues of 501(c)(3) organizations.

Your issues are beyond that and I would need to spend a substantial amount of time in drafting a contract.  If you want to hire me for that work, send me an email directly to my email address below and I will quote you my fees.  

Harvey Mechanic
Attorney at Law

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


DO NOT GIVE ME INFORMATION THAT YOU WANT KEPT CONFIDENTIAL. 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 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 "" without the quotes and then add your search terms before hitting enter.


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.


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

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

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