Looking at starting a non profit hunting club
 

I am considering starting a non profit hunting club here in Montana with friends, I would like some guidance on how to go about it, from my research, you would register with the irs as a 501(c) 7, correct?

That is correct but you may want to consider a standard incorporation. Some outfits that initially issue stock to members in exchange for the seed money to buy property like doing it this way. Either way it is fairly easy, and your annual tax compliance should be simple. Go find a local attorney or CPA to join your club (and take care of the paperwork) and life will be easy.

We are actually leasing the ground, it is a pricey lease, so there will be 11 members or so....I've been told to form an LLC also.

As long as your revenues and expenses match up then tax issues are not important whether or not you are a NP. If you are using cash basis instead of accrual you should make sure the transactions (dues, rent, insurance, etc.) are paid in the same period (year) if you are not a NP. Any form of incorporation would probably work here to protect the membership. Some fellows will recommend LLC, some will like a regular C for the corporate form. The important point is to make sure you form a shield (corp.) between the members and possible claims.

Do you homework and seek advice if needed from someone that practices in your state to guide you if you have questions (your buddy, neighbor, internet guy like me, etc. are often poor choices), but generally this is a fairly straightforward setup.

I appreciate the advice. I reached out to an attorney here in town to set up a time to speak regarding the establishment of the club, thanks again.

I'm curious as to how this all works out. It's an interesting concept.

We are in the beginning stages of trying to figure things out ourselves. Like I mentioned I have reached out to both an attorney and an accountant to advise us of a few things, we need to make sure we compliant with all parties, state, federal governments. Ideally we want to have 10 or 11 members, each member would pay equal amounts to the club, which then would pay the lease of the land. Each member would be able to bring a guest on there visits to the ranch. Scheduling , game management is still up in the air to be honest. Our game management plan would be oriented towards providing quality hunting, more then number of animals taken, though the ranch lies in an area where there is supple game numbers, specifically elk where there is a shoulder season for cow elk, which allows plenty of chances, the ranch family would like 50-60 head taken off of the ranch, so the club would have opportunities to reach out to other non profits, such as youth or veteran oriented organizations to host people involved with them, such as warrior hunts for cow elk and antelope, something that has been special to me the past several years. The club would not just be about taking game, it would be about sharing our love of hunting with individuals, who otherwise might not have that opportunity.

I spoke with one of my partners that works extensively with NP organizations. His opinion was that the NP status would be a great advantage if you are seeking contributions or grants. His thought is that for just a bunch of fellows who are paying their own way it does not do much. Offering hunts to NP organizations would not require your club to have NP status.

If you intend to create an organization that seeks contributions or funding it would make more sense to form it separate from the hunting club.

First, I appreciate your effort for reaching out to people on my behalf. I am unsure of trying to seek donations …..I realize that members will be doing a lot of the hunting, I do not want to have donations pay for the hunting we would be doing. It may come down to asking for donations to help pay the expenses of some of the hunts we would host for youth and veterans. I have a history of working on behalf of a non profit warriors group here in Montana and have sought donations prior for events that they have put on. I am probably making this more complicated then needs be, lol.

This forum is lucky to have members like Big Uncle. I want to publicly thank him for helping me on my quest! You have a friend in Montana.