Tax Issues | Alumni Association of the University of Michigan                            

Laws regarding the filing of tax returns and annual reports varies from state to state and you should consult your professional advisors for the rules in your state.

In Michigan, all nonprofit corporations must file an Annual Report with the state ($20 fee; read more here). Michigan law does not, however, require clubs to file an annual state income tax return unless the club offers goods for sale.

All clubs earning "unrelated business income" of $1,000 or more must file IRS Form 990T (.pdf) annually. "Unrelated business income" is defined as income from a trade or business, regularly carried on, that is not substantially related to the performance by the organization of its exempt purpose or function (e.g., selling ads in a regularly published magazine). For more information, visit the IRS's website.