In addition to the accounts maintained by the church for expenses directly part of the choir's operation (music, staff salaries, etc.), our church choir has non-deductible finances outside the church budget, used for two main purposes:
- An annual collection of voluntary gifts from members which is divided amongst the church staff members who support the choir in the form of an end-of-year gift
- An annual/semi-annual request for contributions toward a fund used to get flowers/cards for members who are sick, have lost family, or otherwise in situations where we'd like to do something nice for them.
The account used to manage these funds has traditionally been maintained in the name of whoever is the choir treasurer. However, that means that the account has to be moved any time a new treasurer is elected, and that any contributions by check have to be made out to the treasurer personally, which understandably makes some people uncomfortable, including the treasurer. It also mean's the choir's interest is taxable to the treasurer, though it's modest enough that's more a paperwork hassle than a real financial burden.
I'm wondering if we qualify as a social club under 501(c)7, and could get an EIN and be declared tax-exempt on that basis? (Obviously, contributions to a 501(c)7 aren't tax-deductible, I know.) However, we don't charge membership dues, so that's potentially a little questionable. Anyone know more about whether this is an option for us? If not, is there a different way we might approach this?