Whether an organization falls under IRS Code Section 501(c)7 or IRS Code Section 501(c)3 depends on the nature and objectives of the group. A social club that is organized for pleasure, recreation, and other similar purposes, and supported by membership dues, fees and assessments would usually fall under IRS Code Section 501(c)7 for non-profit organizations. Section 501(c)3 covers charitable organizations, which caters to “relief of the poor, the distressed, or the underprivileged; advancement of religion; advancement of education or science; erecting or maintaining public buildings, monuments, or works; lessening the burdens of government; lessening neighborhood tensions; eliminating prejudice and discrimination; defending human and civil rights secured by law; and combating community deterioration and juvenile delinquency.” Charitable organizations are mostly supported by donations, and not by required dues or fees.

To ensure that an organization is established properly and in accordance with law, consult with a tax attorney to find out what category a group would belong, and the necessary steps in proper filing for taxes or tax exemptions if applicable.