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Government Report: “Clothes Dryer
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NADCA Certified
EXEMPT...
from page 50.
nization which operates exclusively
for the promotion of social welfare if
it provides maintenance of common
property for the benefit of its mem-
bers. Additionally, if the association’s
income is used to provide direct ben-
efits to its members, members that pay
dues for such maintenance, this would
indicate that the association is benefit-
ting members, and not the community.
Any benefit to the community may be
incidental.
As stated earlier, most associations
will not qualify for such exempt sta-
tus, but an association may possibly
qualify if the public has full access to
the association either through direct
access like parks, greenways, lakes,
bike paths etc. or through user fees
such as golf courses and restaurants.
Additionally, it is possible that even
in a gated community, if for example
the gates are merely for security, an
Association may qualify.
If the association does qualify as an
exempt social welfare organization,
the association must file Form 990
(Return of Organization Exempt from
Income Tax). Form 990 is a complex
return and includes significant infor-
mation about the association as well
as the names of the board members.
In addition, there is the possibility that
association could also be subject to
unrelated business tax.
This is an intricate issue and if your
association meets the criteria, it may
be beneficial to have a discussion
about social welfare organizations
and the related tax consequences
with your tax professional.
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