What differences or special considerations are there in IRS tax handling of bequests made to a §501(c)(7) social club, compared to the same bequest made to a private party or a §501(c)(3)

In particular how is a donation of appreciated stock handled, and what basis would apply to the stock?

I am aware of https://www.irs.gov/Charities-&-Non-Profits/Other-Non-Profits/Guidelines-for-Tax-Exempt-Social-Clubs-Internal-Revenue-Manual

  • 1
    If this is a question about the basis of the stock that the 501(c)(7) social club receives as a bequest, then it is off-topic for this site. If the question is about the taxable estate for Federal or State Estate Tax purposes, then it is worth noting that less than 1% of estates pay any Federal Estate Tax at all because they are smaller than $5.4M, the current exemption. If the estate in question is larger, hiring a competent attorney is far better than relying on opinions on this site. Commented Jun 13, 2017 at 14:28

1 Answer 1


If cash donations are not deductable, stock contributions aren't either and I believe the same rules apply as for a private party.

  • If a private party inherits stock, the basis is set at time of death. Is a 501(c)7 different?
    – Bryce
    Commented Feb 19, 2016 at 1:14
  • If the stock is transferred, are taxes due at time of transfer? Where are these rules written down?
    – Bryce
    Commented Feb 22, 2016 at 18:02
  • 1
    @Bryce you are tacking on 2 different questions. Commented Jun 18, 2016 at 22:13
  • If you have additional questions, please start a new Question for each.
    – keshlam
    Commented Jun 18, 2016 at 22:41

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