We are a group of retirees who pay $15 a year for dues, about 125 members. we have 4 meetings a year, a summer cookout and a Xmas party. we also buy flowers when a member passes away. assets are about $3000. Should we be a charitable trust or a corporation?
You don't sound like a charity, but rather like an informal friendship organization. Any group that can be organized as an entity to provide protection from liability (the fire at a summer barbeque gets out of control) is worthwhile. But you have a real practical problem. $15 x 125 = $1,875. Is it worth the cost? Even if you set up an entity, whether itÃ†s a corporation, LLC or something else, you really don't have a business purpose. Are you buying insurance? That is something that really should be addressed. Perhaps a practical solution is to affiliate with an existing charitable organization in your area, is there a YMCA or Church group in your area? If you became an affiliate of an existing charity you might qualify for coverage on their insurance (but get that confirmed in writing). You could even expand your social functions to raise some money for the local charity with which you affiliate. That might give more meaning and reward to everyone.
Subscribe to our email list to receive information on consumer webcasts and blogs, for practical legal information in simple English, delivered to your inbox. For more professional driven information, please visit Shenkman Law to subscribe.