Private members clubs play a vital role in cultivating a sense of community and camaraderie among like-minded individuals. As 501(c)(7) organizations, these clubs operate as non-profits, relying on membership fees to sustain their operations while providing an array of benefits to their members. It is worth noting that, according to a 2019 study by the National Club Association, approximately 60% of private country clubs in the United States are 501(c)(7) organizations. However, effectively advertising membership offerings without jeopardizing their non-profit status can pose a challenge.
The IRS offers guidance in this regard, stating that “501(c)(7) organizations may advertise their activities and membership benefits, but they are prohibited from directly soliciting or requesting contributions.” The IRS further advises that advertising should focus on describing the benefits of membership and should not contain any language that could be interpreted as solicitation for contributions.
In this article, we delve into effective strategies for private members clubs to promote their membership offerings while adhering to the guidelines of their non-profit status. We will explore methods such as utilizing social media platforms, developing engaging websites, hosting captivating open house events, and engaging in various marketing activities that can attract new members without compromising their tax-exempt status.
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Disclaimer: Private Club Marketing is not a law firm or tax advisory firm. The information in this article is for informational purposes only and is not intended to be legal advice. Any club or organization that seeks to use the methods described in this article should consult with an attorney to ensure that they are in compliance with the law.