The Alumni Association of the University of Michigan is a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code.

To be tax-exempt, an organization must be organized and operated exclusively for one or more of the purposes set forth in Section 501(c)(3), and none of its earnings may inure to the benefit of any private shareholder or individual. Moreover, the organization may not attempt to influence legislation as a substantial part of its activities and it may not participate at all in campaign activity for or against political candidates.

There are several 501(c) recognition categories. Section 501(c)(3) status is one that allows an organization to receive contributions that are tax-deductible to the donor. Your club could likely qualify as tax-exempt under section 501(c)(7) as a social club, but that does not mean it can receive tax deductible gifts; it only means your club would not have to pay taxes. Complete exemption requirements can be found on the IRS’s website.

The vast majority of Association clubs and affiliates are not themselves 501(c)(3) entities, and the Association discourages clubs from applying for their own tax-exempt status for a variety of reasons without first consulting a professional tax advisor. Please contact the Association’s global engagement team for more details, including the requirements and fees associated with 501(c)(3) organizations.

When circumstances warrant, clubs may benefit from the Association’s 501(c)(3) tax-exempt status (namely, sales
tax exemption and the ability to accept tax-deductible contributions).