Just What is a 501(c)(7)? By Mary Ann Tuer, International Secretary/Treasurer

Sigma Phi Gamma International Sorority, Inc. is considered a “social/friendship club” and was organized for pleasure, recreation and other non-profitable purposes by our Founders in 1920.  Generally, social clubs are membership organizations primarily supported by dues, fees, charges or other funds paid by their members.
The main difference between a 501(c)(7) and 501 (c)(3) is that any money or goods received from our members or outside sources are NOT tax deductible.  When looking for donations from businesses or other sources, make sure you tell them that we are a (c)7 and NOT a (c)3.
Also, I believe there is a misconception about being “exempt”. “Exempt” does not mean that a Chapter or Province does not pay sales taxes.  Sigma Phi Gamma International Sorority, Inc. as a whole is exempt from paying taxes (Federal), but even I pay taxes for everything purchased for the business office.
Did you know that our Bylaws (governing instrument) may not contain a provision that provides for discrimination against any person on the basis of race, color or religion?  I was not aware of this – but fortunately, this is not something Sigma Phi Gamma has to worry about since we do not have any of these provisions and we are a “friendship” organization that welcomes those who want to join.
Lastly, any net earnings of this organization may not inure to the benefit of any person (member or their family members) having a personal or private interest in its activities.  This is why none of the monies earned can go directly to a sister in need.
Remember, before you commit to a function or a meeting place where they are requesting your non-profit status, make sure you tell them we are a 501(c)(7) so there is no confusion at the end of the day.  I have a copy of the IRS letter stating our exempt status in the business office if you ever have to produce it.
Just know I am a phone call away if you ever have any questions. Mary Ann

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