{"id":74317,"date":"2024-01-19T12:48:01","date_gmt":"2024-01-19T20:48:01","guid":{"rendered":"https:\/\/donorbox.org\/nonprofit-blog?p=74317"},"modified":"2026-08-21T06:51:01","modified_gmt":"2026-08-21T13:51:01","slug":"501c7-vs-501c3","status":"publish","type":"post","link":"https:\/\/donorbox.org\/nonprofit-blog\/501c7-vs-501c3","title":{"rendered":"501(c)(7) vs. 501(c)(3): A Guide for Nonprofits"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The primary difference between a 501(c)(3) and a 501(c)(7) organization is that a 501(c)(7) exists to serve its own members. 501(c)(3) organizations strive to benefit the public. There are many similarities when comparing 501(c)(7) vs. 501(c)(3) organizations, but the devil is in the details.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This article will explain what 501(c)(3) and 501(c)(7) organizations are, why you might choose one<\/span> <a href=\"https:\/\/donorbox.org\/nonprofit-blog\/types-of-nonprofits\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">type of nonprofit<\/span><\/a><span style=\"font-weight: 400;\"> over the other, and how to set up a 501(c)(7) organization.\u00a0<\/span><\/p>\n<hr \/>\n<h2>Key Takeaways &#x1f4a1;<\/h2>\n<ul>\n<li data-section-id=\"fsxgkv\" data-start=\"18\" data-end=\"192\"><strong data-start=\"20\" data-end=\"59\">Establish your nonprofit based on the purpose of your mission.<\/strong> A 501(c)(3) serves a charitable purpose, while a 501(c)(7) primarily benefits its members through social or recreational activities.<\/li>\n<li data-section-id=\"q5pxlu\" data-start=\"194\" data-end=\"370\"><strong data-start=\"196\" data-end=\"235\">Understand the funding differences.<\/strong> 501(c)(3)s must be funded by public donations and government entities, whereas 501(c)(7)s must be primarily funded by membership fees, dues, and assessments.<\/li>\n<li data-section-id=\"kmfjte\" data-start=\"372\" data-end=\"518\"><strong data-start=\"374\" data-end=\"416\">Review the requirements before filing.<\/strong> Each nonprofit type has different IRS rules, eligibility requirements, and ongoing compliance obligations.<\/li>\n<\/ul>\n<hr \/>\n<h2><span style=\"font-weight: 400;\">What are 501(c)(3) and 501(c)(7) Organizations?\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Both 501(c)(3) and 501(c)(7) nonprofits are tax-exempt, according to the Internal Revenue Service (<a href=\"https:\/\/www.irs.gov\/\" target=\"_blank\" rel=\"nofollow noopener\">IRS<\/a>). Still, there are significant differences between the two. You should make sure to fully understand both of these types of organizations when <a href=\"https:\/\/donorbox.org\/nonprofit-blog\/start-a-nonprofit\" target=\"_blank\" rel=\"noopener\">starting a nonprofit<\/a>.\u00a0<\/span><\/p>\n<hr \/>\n<h3><span style=\"font-weight: 400;\">What is a 501(c)(3)?\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Nonprofit organizations classified as <a href=\"https:\/\/www.irs.gov\/charities-non-profits\/charitable-organizations\/exemption-requirements-501c3-organizations\" target=\"_blank\" rel=\"nofollow noopener\">501(c)(3)<\/a> must be either public charities or private foundations. 501(c)(3) public charities must be organized and operate for charitable, religious, educational, scientific, or literary purposes, or they must test for public safety, foster national or international amateur sports competitions, or prevent cruelty to children or animals. Private 501(c)(3) nonprofit foundations can run like other private foundations but must fund charitable, exempt activities.<\/span><\/p>\n<p><strong>Bonus:<\/strong> Looking to register as a <a href=\"https:\/\/donorbox.org\/nonprofit-blog\/how-to-start-a-501c3\" target=\"_blank\" rel=\"noopener\">501(c)(3)<\/a>? Check out this complete guide.<\/p>\n<hr \/>\n<h3><span style=\"font-weight: 400;\">What is a 501(c)(7)?\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">501(c)(7) organizations are defined by the IRS as <a href=\"https:\/\/www.irs.gov\/charities-non-profits\/other-non-profits\/exempt-purposes-code-section-501c7\" target=\"_blank\" rel=\"nofollow noopener\">social clubs<\/a> organized for pleasure, recreation, and other similar purposes. Membership must be limited, and the club must offer an opportunity for personal connections between these members.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Nonprofit organizations classified as 501(c)(7) can be<\/span> <a href=\"https:\/\/donorbox.org\/nonprofit-blog\/fraternity-fundraising-ideas\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">college fraternities<\/span><\/a><span style=\"font-weight: 400;\"> and sororities, country clubs, dinner clubs, hobby clubs (like book clubs and clubs to do with hunting, fishing, chess, gardening, etc.), and more. \u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The <\/span><a href=\"https:\/\/donorbox.org\/delta-chi-virginia-tech-general-fundraising\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Virginia Tech Chapter of Delta Chi Fraternity<\/span><\/a><span style=\"font-weight: 400;\"> uses <\/span><b>Donorbox<\/b><span style=\"font-weight: 400;\"> to raise funds online.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-74326 size-large\" src=\"https:\/\/donorbox.org\/nonprofit-blog\/wp-content\/uploads\/2024\/01\/Virginia-Tech-Delta-Chi-Fraternity-501c7-1024x636.png\" alt=\"Screenshot of the. Donorbox fundraising form used by Delta Chi at Virginia Tech\" width=\"640\" height=\"398\" srcset=\"https:\/\/donorbox.org\/nonprofit-blog\/wp-content\/uploads\/2024\/01\/Virginia-Tech-Delta-Chi-Fraternity-501c7-1024x636.png 1024w, https:\/\/donorbox.org\/nonprofit-blog\/wp-content\/uploads\/2024\/01\/Virginia-Tech-Delta-Chi-Fraternity-501c7-300x186.png 300w, https:\/\/donorbox.org\/nonprofit-blog\/wp-content\/uploads\/2024\/01\/Virginia-Tech-Delta-Chi-Fraternity-501c7-768x477.png 768w, https:\/\/donorbox.org\/nonprofit-blog\/wp-content\/uploads\/2024\/01\/Virginia-Tech-Delta-Chi-Fraternity-501c7-1536x955.png 1536w, https:\/\/donorbox.org\/nonprofit-blog\/wp-content\/uploads\/2024\/01\/Virginia-Tech-Delta-Chi-Fraternity-501c7-2048x1273.png 2048w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/p>\n<p style=\"text-align: center;\"><a class=\"maxbutton-1 maxbutton maxbutton-get-started-with-donorbox\" target=\"_blank\" title=\"Sign up\" rel=\"noopener\" href=\"https:\/\/donorbox.org\/orgs\/new\/?utm_source=Blog\"><span class='mb-text'>Start fundraising for your 501(c)(7)<\/span><\/a><\/p>\n<hr \/>\n<h2><span style=\"font-weight: 400;\">The Difference Between 501(c)(3) and 501(c)(7) Organizations<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The following table breaks down specific differences and similarities when comparing 501(c)(7) vs. 501(c)(3) tax-exempt organizations.<\/span><\/p>\n<hr \/>\n<table>\n<tbody>\n<tr>\n<td style=\"text-align: center;\" colspan=\"2\"><b>Similarities<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>501(c)(3)<\/b><\/td>\n<td><b>501(c)(7)<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Tax-exempt from federal income taxes<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Tax-exempt from federal income taxes<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Income cannot benefit individuals<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Income cannot benefit individuals<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Cannot discriminate based on religion, race, or color<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Cannot discriminate based on religion, race, or color<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Must maintain financial records and file annual tax returns<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Must maintain financial records and file annual tax returns<\/span><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\" colspan=\"2\"><b>Differences<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>501(c)(3)<\/b><\/td>\n<td><b>501(c)(7)<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Purpose is primarily to benefit the public<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Purpose is primarily to benefit members<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Restricted from lobbying and political activities for politicians<\/span><\/td>\n<td><span style=\"font-weight: 400;\">No restrictions on lobbying provided it&#8217;s related to the organization&#8217;s exempt purpose<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Donors can deduct donations<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Members cannot deduct membership fees<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Can claim tax-exempt status when filing taxes with Form 990 or file Form 1024 with the IRS<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Required to file Form 1023 with the IRS to gain 501(c) status<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Must receive most of their revenue from public donations or government entities<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Must be supported primarily by membership fees, dues, and assessments<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">No similar requirement<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Must provide its members with the opportunity for personal contact and connection<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<hr \/>\n<h2><span style=\"font-weight: 400;\">501(c)(3) vs. 501(c)(7): Choosing Your Type\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">There are benefits to forming both organization types. Before starting your nonprofit organization, it\u2019s vital to view each organization type\u2019s pros and cons.<\/span><\/p>\n<hr \/>\n<table>\n<tbody>\n<tr>\n<td colspan=\"2\">\n<p style=\"text-align: center;\"><b>Pros<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><b>501(c)(3)<\/b><\/td>\n<td><b>501(c)(7)<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Exempt from federal taxes<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Exempt from federal taxes<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Donations to 501(c)(3) organizations are tax-deductible<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Club members can combine donations to fund a recreational purpose<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">501(c)(3) status gives organizations credibility<\/span><\/td>\n<td><span style=\"font-weight: 400;\">501(c)(7) status can give clubs credibility<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Eligible for government and private grants<\/span><\/td>\n<td><span style=\"font-weight: 400;\">May cost money to file an Article of Incorporation with the state, <\/span><\/p>\n<p><span style=\"font-weight: 400;\">but the IRS does not require 501(c)(7) organizations to file additional forms<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Founders, directors, members, and employees are not personally liable for nonprofit&#8217;s debts<\/span><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p style=\"text-align: center;\"><b>Cons<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><b>501(c)(3)<\/b><\/td>\n<td><b>501(c)(7)<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">No financial benefits for founders<\/span><\/td>\n<td><span style=\"font-weight: 400;\">No financial benefits for founders<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Financial information is publicly available<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Financial information is publicly available<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Can be costly and time-consuming to start a 501(c)(3) nonprofit organization<\/span><\/td>\n<td><span style=\"font-weight: 400;\">501(c)(7) organizations must maintain administrative records and file taxes<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">501(c)(3) organizations must maintain administrative records and file taxes<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Social club members cannot deduct membership fees<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<hr \/>\n<p><span style=\"font-weight: 400;\">Both organization types are exempt from paying federal income taxes. They must both also keep financial records and file annual taxes. Another primary benefit for both organizations is the credibility each gains from its 501(c) status.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Organizations that operate for charitable purposes and require financial donations to fulfill their missions should become 501(c)(3) organizations for a few specific benefits. Donations to 501(c)(3) nonprofits are tax deductible, increasing donations from those interested in the tax benefits. 501(c)(3) organizations can also apply for and receive grant funding from governmental and private foundations. Read <a href=\"https:\/\/donorbox.org\/nonprofit-blog\/501c3-donation-rules\" target=\"_blank\" rel=\"noopener\">this blog<\/a> for more details about all requirements and best practices for accepting donations as a 501(c)(3).\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Social clubs that primarily operate for pleasure and recreation purposes should file as 501(c)(7) organizations because of benefits like exemption from federal taxes. Member fees are not tax deductible, but the credibility gained from 501(c) status may counter that.\u00a0<\/span><\/p>\n<hr \/>\n<h2><span style=\"font-weight: 400;\">How Do I Set Up a 501(c)(7)?<\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-74322\" src=\"https:\/\/donorbox.org\/nonprofit-blog\/wp-content\/uploads\/2024\/01\/Book-Club-501c7.png\" alt=\"Image of a book club - a potential 501(c)(7) organization \" width=\"800\" height=\"450\" srcset=\"https:\/\/donorbox.org\/nonprofit-blog\/wp-content\/uploads\/2024\/01\/Book-Club-501c7.png 800w, https:\/\/donorbox.org\/nonprofit-blog\/wp-content\/uploads\/2024\/01\/Book-Club-501c7-300x169.png 300w, https:\/\/donorbox.org\/nonprofit-blog\/wp-content\/uploads\/2024\/01\/Book-Club-501c7-768x432.png 768w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/p>\n<p>Now that we&#8217;ve compared 501(c)(7) vs. 501(c)(3) organizations, you may feel prepared to launch your own 501(c)(7) social club. <a href=\"https:\/\/donorbox.org\/nonprofit-blog\/start-a-501c7\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Starting a 501(c)(7)<\/span><\/a><span style=\"font-weight: 400;\"> nonprofit organization is similar to setting up any nonprofit in your state. The process may feel complicated and overwhelming, but it is simple if you follow a step-by-step approach. Social clubs can benefit from tax-exempt status and can raise money in membership fees to pay for perks like a community pool or event.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If your social club meets all<\/span> <a href=\"https:\/\/www.irs.gov\/charities-non-profits\/other-non-profits\/social-clubs\"><span style=\"font-weight: 400;\">501(c)(7) requirements<\/span><\/a><span style=\"font-weight: 400;\"> with the IRS, you can follow the next steps to file with your state as well as for federal 501(c) status.<\/span><\/p>\n<hr \/>\n<h3>1. Choose a name<\/h3>\n<p><span style=\"font-weight: 400;\">First and foremost, you will need a unique name for your 501(c)(7) organization. Visit your state\u2019s Secretary of State website to see if the name is available and register it as soon as possible. <\/span><\/p>\n<p><strong>Pro tip: <\/strong>What you name your nonprofit is critical to your image. Download our free <a href=\"https:\/\/library.donorbox.org\/nonprofit-naming-checklist\/\" target=\"_blank\" rel=\"noopener\">Naming &amp; Branding Worksheet<\/a> to help!<\/p>\n<hr \/>\n<h3>2. Choose your incorporator(s)<\/h3>\n<p><span style=\"font-weight: 400;\">Now, it\u2019s time to move on to your club\u2019s leadership. You must find at least one Incorporator to sign your Articles of Incorporation.\u00a0 <\/span><\/p>\n<hr \/>\n<h3>3. Develop your board of directors<\/h3>\n<p><span style=\"font-weight: 400;\">Next up, select your board of directors. The number of <a href=\"https:\/\/donorbox.org\/nonprofit-blog\/nonprofit-board-responsibilities\" target=\"_blank\" rel=\"noopener\">board members<\/a> you must have depends on the state of your organization. Some states only require two board members, but your club\u2019s board of directors should ideally include a president (also known as a chair), vice president or co-chair, secretary, and treasurer.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s crucial to develop a process for recruiting and <a href=\"https:\/\/donorbox.org\/nonprofit-blog\/onboarding-board-members\" target=\"_blank\" rel=\"noopener\">onboarding<\/a> board members. Be transparent about this process and include it in your organization\u2019s bylaws.<\/span><\/p>\n<hr \/>\n<h3>4. Find a Registered Agent<\/h3>\n<p><span style=\"font-weight: 400;\">Most states require organizations to find a Registered Agent to receive legal notices for the club. Registered Agents must be individuals or businesses located in the state and be open during regular business hours.<\/span><\/p>\n<hr \/>\n<h3>5. Create your club&#8217;s Articles of Incorporation<\/h3>\n<p><span style=\"font-weight: 400;\">Then, your social club should file an Articles of Incorporation with your state and include information like:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Corporate name\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Registered name and address\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Names and addresses of board members<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The organization\u2019s purpose<\/span><\/li>\n<\/ul>\n<hr \/>\n<h3>6. Get an Employer Identification Number<\/h3>\n<p><span style=\"font-weight: 400;\">After filing your club\u2019s Articles of Incorporation, you can sign up for an Employer Identification Number (EIN) from the IRS. This nine-digit number lets you file for tax exemption with the IRS, start a bank account, and make payroll if you grow large enough.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Fill out IRS<\/span> <a href=\"https:\/\/www.irs.gov\/forms-pubs\/about-form-ss-4\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">Form SS-4<\/span><\/a><span style=\"font-weight: 400;\"> online to apply for an EIN. Print and keep this form safe with your organization\u2019s files.<\/span><\/p>\n<hr \/>\n<h3>7. Hold your first board meeting and develop your club\u2019s bylaws<span style=\"font-weight: 400;\">\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Now, your board members must become leaders immediately and hold their first meeting to develop and approve the organization\u2019s<\/span> <a href=\"https:\/\/donorbox.org\/nonprofit-blog\/nonprofit-bylaws-made-easy\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">bylaws<\/span><\/a><span style=\"font-weight: 400;\">, create a conflict-of-interest policy, and elect your board\u2019s officers.<\/span><\/p>\n<hr \/>\n<h3>8. Apply for tax-exempt status with the IRS<\/h3>\n<p><span style=\"font-weight: 400;\">The IRS does not require social clubs to file for tax-exempt status, but these organizations do need to file taxes with Form 990 and identify as a social club. If you apply with the IRS formally, you can file<\/span> <a href=\"https:\/\/www.irs.gov\/forms-pubs\/about-form-1024\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">Form 1024<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<hr \/>\n<h3>9. Start a nonprofit bank account<\/h3>\n<p><span style=\"font-weight: 400;\">Once you have an EIN, you can set up a<\/span>\u00a0<a href=\"https:\/\/donorbox.org\/nonprofit-blog\/nonprofit-banking\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">bank account<\/span><\/a><span style=\"font-weight: 400;\"> for your social club. Finding a bank that offers good benefits and meets your group\u2019s ethical standards is vital. You must also remember to bring the following items when opening your account:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Nonprofit&#8217;s bylaws\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Articles of Incorporation\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">EIN\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">List of officers, along with their ID cards<\/span><\/li>\n<\/ul>\n<hr \/>\n<h3>10. Find an online membership collection tool<\/h3>\n<p>Next, making it as easy as possible to collect membership dues will benefit not just you but your members as well.<\/p>\n<blockquote><p><a href=\"https:\/\/donorbox.org\/memberships\" target=\"_blank\" rel=\"noopener\"><b>Donorbox<\/b><\/a><span style=\"font-weight: 400;\"> is an affordable online donation tool that makes collecting membership fees quick and simple. Sign up for free in minutes. Then, start collecting monthly and\/or annual memberships and let your members manage their own accounts.<\/span><\/p>\n<a class=\"maxbutton-1 maxbutton maxbutton-get-started-with-donorbox\" target=\"_blank\" title=\"Sign up\" rel=\"noopener\" href=\"https:\/\/donorbox.org\/memberships\"><span class='mb-text'>Learn more about Memberships<\/span><\/a><\/blockquote>\n<hr \/>\n<h3>11. Promote your organization and find members<\/h3>\n<p><span style=\"font-weight: 400;\">The IRS has few requirements for membership in 501(c)(7) social clubs. The only rule is that you cannot limit membership based on color, race, or religion.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Now that you\u2019re done setting up your social club with the IRS and your state, you&#8217;re ready to promote and recruit members online and in person.\u00a0<\/span><\/p>\n<hr \/>\n<h2><span style=\"font-weight: 400;\">Your Turn\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Choosing the right organization type for your organization depends on your mission. When comparing 501(c)(7) vs. 501(c)(3) organizations, it&#8217;s easy to see there are several similarities and differences between the two. 501(c)(3) nonprofits must organize and operate for charitable, educational, or scientific purposes. 501(c)(7) organizations are created as social clubs for pleasure and recreation.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019ve recently formed a 501(c)(7) organization,<\/span> <a href=\"https:\/\/donorbox.org\/features?gclid=CjwKCAiAzJOtBhALEiwAtwj8ts0AvFSAzQFD1NgD8_9ys1k3OwbFN3BfGoFU3dpUtc73nZg-OVfTKxoCz9QQAvD_BwE&amp;original_url=https%3A%2F%2Fdonorbox.org%2F%3Futm_source%3DGoogleAds%26utm_medium%3Dppc%26utm_campaign%3DBrand%26gad_source%3D1%26gclid%3DCjwKCAiAzJOtBhALEiwAtwj8ts0AvFSAzQFD1NgD8_9ys1k3OwbFN3BfGoFU3dpUtc73nZg-OVfTKxoCz9QQAvD_BwE&amp;utm_campaign=Brand&amp;utm_medium=ppc&amp;utm_source=GoogleAds\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">visit Donorbox\u2019s website<\/span><\/a><span style=\"font-weight: 400;\"> to learn more about the tools and services available to help you raise funds and establish memberships. <\/span><a href=\"https:\/\/donorbox.org\/nonprofit-blog\"><span style=\"font-weight: 400;\">\u00a0<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Plus, check out our Nonprofit Blog and <\/span><a href=\"https:\/\/donorbox.org\/nonprofit-blog\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">sign up<\/span><\/a><span style=\"font-weight: 400;\"> for regular tips and resources to help you help others.\u00a0<\/span><\/p>\n<a href=\"https:\/\/donorbox.org\/orgs\/new?utm_source=Blog&utm_medium=footer-bannerc\" class=\"banner-link\" target=\"_blank\">\n\t  \t\t\t\t\t\t<img src=\"https:\/\/donorbox.org\/nonprofit-blog\/wp-content\/uploads\/2018\/10\/seemless-giving-tools.webp\" alt=\"Bottom banner\" loading=\"lazy\" decoding=\"async\" \/>\n\t\t\t\t\t\t<\/a>","protected":false},"excerpt":{"rendered":"<p>The primary difference between a 501(c)(3) and a 501(c)(7) organization is that a 501(c)(7) exists to serve its own members. 501(c)(3) organizations strive to benefit the public. There are many similarities when comparing 501(c)(7) vs. 501(c)(3) organizations, but the devil is in the details.\u00a0 This article will explain what 501(c)(3) and 501(c)(7) organizations are, why [&hellip;]<\/p>\n","protected":false},"author":41,"featured_media":74318,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":"","_ppma_block_editor_authors":""},"categories":[3,6272],"tags":[],"ppma_author":[6364,6389],"class_list":["post-74317","post","type-post","status-publish","format-standard","has-post-thumbnail","category-nonprofit-tips","category-start-a-nonprofit","entry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.2 (Yoast SEO v28.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>501(c)(7) vs. 501(c)(3): A Guide for Nonprofits<\/title>\n<meta name=\"description\" content=\"You&#039;re thinking about launching a nonprofit. 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