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Are you implying that the members will each be paid a share of the profits?
In your articles or incorporation and your bylaws (if you are a true 501(c)3) you should have had to detail the way that the assets of the group would be distributed if the group was ever disolved. In most cases, this cannot mean any profit for the members.
I think that you should go back and take a look at your bylaws and articles of incorporation. Then get back to me with what it says.
In mose cases, members cannot profit from the sale or disolution of a non profit group.
Yeah.... but does it say what the method of disolution can be and if the members can profit.
Most non profits have to have a clause in there that says that the proceeds will be donated to a similar charity or another situation where the members cannot profit.
The reason for this is that non profits get grants and donations because they have a purpose that other people and groups believe in. Because the funding comes from the public, the members should not be able to benefit in the event of a sale.
So, in this case, none of the member would have to worry about taxes on their share because there would be none.
Does this make sense?
I founded and am president of a non profit. In the articles or incorporation and bylaws, it states that any assets or profits that are earned when the group disolves must be donated to a like charity.
You should have a clause that states this specifically.
Check your articles or incorporation to be sure.
Is it a 501(c)3?
If it is simply a recreational club, the proceeds distributed to each member will be taxed at pretty much the same rate as your regular wages.
In that case, you don't have the same problem that you would if it was a non profit.
Let me know if you still have questions.