The IRS audited the Horseless Carriage Club of America... found it hadn't met the obligations of educational endeavors, revoked the 501(c)(3) tax exempt donation status

In the months after the IRS declared that it would revoke the HCCA’s 501(c)(3) non-profit status in May 2011 and consider it a for-profit organization, many club members feared that the loss of that status would effectively spell the end for the club.

Though the club, founded in 1937, had spent much of its existence as a 501(c)(7) non-profit organization – as a social or recreational club, according to the IRS tax code – it switched to 501(c)(3) non-profit status in 2007, thus enabling donations to the club to become tax deductible (and, the club hoped, resulting in more and larger donations to the club).

That change, however, also necessitated that the club provide an educational aspect, and the club had a difficult time proving that it had fulfilled that obligation during a subsequent IRS audit.

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