social club

A term of art, embracing a variety of organizations other than business, philanthropic, or educational associations. Duquesne Club v Bell (CA3 Pa) 127 F2d 363, 143 ALR 1377. As an organization exempt from federal income tax, a club not organized for profit or for the benefit of private shareholders. Internal Revenue Code § 50 As the term is used in the Federal income tax law, if any material, that is, important part of the club's activities (but not as much as a moiety thereof) are social as contradistinguished from the remaining non-social activities, it is a social club. Town Club of St. Louis v United States (CA8 Mo) 68 F2d 620. Within the meaning of the Federal statute imposing a tax on the fees or dues of such a club, it is in general a club that has for its primary purpose the cultivation of companionable relations. However, no exact definition can be given for such a club and whether the fees or dues of a particular club or organization are subject to tax as a social club is primarily a question of fact. The issue is to be determined according to the predominant purpose of the organization, and social features which are merely incidental to the general activities of an organization will not characterize it as a social club. But if the predominant purpose of an organization is social, it is a social club, notwithstanding the fact that other activities may be important, or that the activating motive of the members in joining was to make business contacts. Anno: 80 ALR 1297, s. 143 ALR 1382; 86 L Ed 633. See athletic club; club; country club; fraternal order or society.