is a 501(c)(7) a good fit for a club for outdoor sporting?

[markascovel]

We are starting a club which will charge dues and hold meets. The IRS documentation says "A section 501(c)(7) organization may receive up to 35% of its gross receipts, including investment income, from sources outside of its membership". Does that mean that we'd loose our tax-exempt status if we hold a for-fee meet and earn money (more than 35% of our gross receipts) that would be used to buy club-related supplies and products?

 

[Michael Wechsler]

I believe that section of IRS tax code is talking about your gross receipts for the year, not one time events.