By qualifying for 501(c)(3) status with the Internal Revenue Service, in
certain cases your club will be able to claim tax deductions on
contributions such as membership dues, scholarship funds and some other
forms of contributions. This will also allow your club to apply for a
bulk-mailing permit, at which you can qualify for a reduced mailing rate.

State to state regulations vary, and it's important to consult a lawyer
before filing in order to make sure all the requirements are being met. If
they are, 501(c)(3) status should also automatically exempt the club from
state income taxes.

To learn more about the application process and to obtain forms, please
visit the IRS web site: http://www.irs.gov/charities/charitable/index.html.