I am a board member of a 501(c)(3) charitable nonprofit wholly controlled by a 501(c)(7) tax-exempt social club. We are concerned about the issue of commingling funds. What are the key points for us to keep in mind?
Three words: Don’t do it.
Very different tax requirements apply to the two types of tax-exempt entities, and you could easily jeopardize either or both exemptions by making wrong allocations.