But I just watched Marlee Ginter’s rock-hard sexposé again. The facts are, to say the least, flaccid.
The point of KOMO’s report was that “your tax dollars [are] paying for a sex club.” To that end, Ginter reports that the club is operating as a 501(c)(7) nonprofit, which provides it a tax-exemption. You'd think that if there were some sort of tax-law violation, Ginter would find the law, compare what the law requires to the actual activities of the organization—and voila, a scandal is born. She doesn't do that, probably because if she reported the actual IRS rules for a 501(c)(7), she would have to tell viewers this:
Requirements for Exemption… To be exempt under Internal Revenue Code section 501(c)(7), a social club must be organized for pleasure, recreation, and other similar nonprofitable purposes and substantially all of its activities must be for these purposes.Personal Contact Required: An essential earmark of an exempt club is personal contact, commingling, and face-to-face fellowship.
Fuck, according to the IRS, a 501(c)(7) is practically required to be sex club.
But rather than discussing the law—that’s the point of the piece—Ginter hooks us in by claiming our tax dollars are going to paying for a sex organization. But is money going from the government to the sex club? If so, Ginter doesn’t mention it.
A federal tax exemption is not our money going to the sex club any more than the Mormon Church's tax exemption means we're giving money to the Mormons. Thank god. There are 1,315 (c)(7) organizations in Washington. They aren’t funded by our money. They are funded by members dues. Sure, those members are tax payers, but they’re not spending our tax dollars—they’re spending their private money. Right, Ginter?
Ginter doesn't answer that question. But she does ask the state why it hasn't cracked down by telling the sex club, “hey, you're not a charity, you're a sex club.” Again, Ginter, if you’d read the IRS information, you'd see 501(c)(7)s aren’t charities. Says the IRS: "Organizations described in section 501(c)(3) are commonly referred to as charitable organizations." On the other hand, 501(c)(7)s are in the category “other non-profits,” and the funds must be gathered exclusively from member dues, not charitable donations.
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