Thank you for your further question. I will do my best to honor your confidence based on my prior responses.
Typically once property, real or otherwise, is held in a certain form any deviation from that form of ownership can be a taxable event. A change in the club's strategy of ownership in any other manner than the trust should not be undertaXXXXX XXXXXghtly and both tax and real estate expertise may be appropriate. There may be concern that if the 501(c)(7) effects a change in the ownership of the property it could trigger a taxable event impacting the club's status.
Since the real property is in Illinois you have the advantage of the Illinois land trust
laws that may benefit the current ownership arrangement, although technically a land trust may not need to be in the form of the current trust arrangement if the property is held by a proper non-profit organization such as your 501(c)(7) (see for example, land development trusts in Illinois, community land trusts and conservation trusts).
All the above being stated, the trust strategy, despite the change in passive income taxation, my be appropriate to carefully consider maintaining, absent a compelling reason to deviate from that strategy.
I hope this is responsive to your question. As always, if you would like further clarification, please let me know.