<a href=showthread.php?s=&postid=11419077#post11419077 target=_blank>Originally posted</a> by Reefugee
If we are going to use club money for group buy, I propose that the group buy be open to ONLY club members. If we open it to non-club members, we will essential be acting as a merchant for the general public.
Actually, the IRS said BAR was basicly giving to much back to the members, ie. BUYING CLUB. Every single hobby have thier own clubs, good and bad. Some are buying clubs and the IRS knows this. Give em a reason and they'll find fault with what the club is doing and you will loose you exempt status nearly over night.
If the clubs buys product and members end up with the product, and they gave money to MARS for said product, that is MARS acting as a merchant to the members from what I have been told by people in the know.
FWIW< BAR had to accountants working with the IRS, one being a non profit accountant very familiar with the laws.