Making a Profit off a Club?

[native44]

What is the name of your state (only U.S. law)? Arizona

My friends were talkiing about starting a club where we would go around giving back to the community. Basically our funds would come from our own pocket, fundraisers, donations, etc. and what we were talking about was if we had any left over funds from donations or whatever we would use it for ourselves. I was just wondering if there was anything fraudulent about this.

 

[Zigner]

What is the name of your state (only U.S. law)? Arizona

My friends were talkiing about starting a club where we would go around giving back to the community. Basically our funds would come from our own pocket, fundraisers, donations, etc. and what we were talking about was if we had any left over funds from donations or whatever we would use it for ourselves. I was just wondering if there was anything fraudulent about this.

What you are talking about is opening a for-profit business in the guise of a charity.

 

[native44]

hmmm...but if we put all the income on our tax forms is there anything illegal about it?

 

[Zigner]

hmmm...but if we put all the income on our tax forms is there anything illegal about it?

The answer to that is: It depends. It COULD be considered fraudulent, depending on how you present the entity when collecting "donations."

 

[native44]

alright. thanks for the answers