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MarianneK
Employee Tax Expert

I need to know if anyone can tell me about how to handle money collected from contributions from forum memberships to a PayPal account, that helps pay for forum cost?

Hello, 

 

In doing some research, I believe your idea would be what the IRS calls a Social Club.   They are tax exempt, if you meet the criteria.  You would file for a 501 (c) (7).  This is different from a charity.  The (7) means social club and any donation to the club is not tax deductible.  

 

I'm not an attorney, so I cannot provide any expertise on filing for the 501 (c) (7).  You can get the forms on irs.gov along with instructions.   You may also need to file a IRS 990 on a yearly basis, again based on qualifications.   You may want to consult with an attorney for help in setting this up and understanding the filing requirements.  

I also found that if you are officially registered as a Tax Exempt Organization, Discourse gives you a 50% discount.   See the link below, scroll to the bottom under Frequently Asked Questions. 

 

I hope this answers your question.   

IRS Social Club

Discourse - 50% off Tax Exempt Organizations

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RyanH5
Employee Tax Expert

I need to know if anyone can tell me about how to handle money collected from contributions from forum memberships to a PayPal account, that helps pay for forum cost?

I agree with @MarianneK in that the forum would most likely qualify as a 501c7. 

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