I'm not a tax lawyer, but....
The general idea for a not for profit organization is that the members get
together and form an organization for a shared activity. And the members
themselves pay for it.
the problem with allowing non-members to enter is that you are having
non-members contribute dollars toward your activity and subsidize it. there is
a limit to how much money the members can enjoy from outside sources.
keep in mind that for many regions the bulk of the revenue (not profit) comes
from a club race so even if you bring in a couple of thousand dollars in
non-member solo fees, the tens of thousand in revenue from a race means the
vast majority of revenue is coming from member sources.
on the other hand, if you are a little region and solo is your only activity
then you could be at risk if you get the majority of your revenue from
non-member solo fees.
jim
|