HTMC & LPMC: Formation of Charitable Nonprofits
Explanation of the formation of a 501(c)(3) and change 501(c)(7) to LPMC 501(c)(2)
Hawaiian Trail and Mountain Club was formally registered as a 501(c)(7) nonprofit social club as by the IRS ruling. Several years ago the Board started the process to form the Hawaiian Trail and Mountain Corporation, a 501(c)(3) charitable nonprofit corporation.
As of July 3, 2018 the Hawaiian Trail and Mountain Corporation was approved by the IRS.
Starting January 1st, 2019 the Hawaiian Trail and Mountain Corporation began operation. The monetary assets from the Hawaiian Trail and Mountain Club were transferred to the Hawaiian Trail and Mountain Corporation.
On December 19th 2018 the Hawaiian Trail and Mountain Club (owner of the Clubhouse property) changed its name to The Luciano Pena Memorial Clubhouse (LPMC). LPMC is listed as a 501(c)(2)* Corporation by the IRS which is a non-profit title holding company effective January 2, 2019.
On August 8, 2019 Hawaiian Trail and Mountain Corporation registered Doing Business As (dba) under the name Hawaiian Trail and Mountain Club.
The purpose of the relationship between HTMC and LPMC is to provide protection between the HTMC and LPMC. HTMC owns LPMC and has a user agreement with LPMC. HTMC has non-exclusive user rights to the clubhouse in exchange for its; maintenance, repair, and insurance (for the property and general liability of the clubhouse). Currently LPMC pays for all utilities; water, electric, internet as well as maintaining the post office box.
*A 501(c)(2) is a Title-Holding Corporation organized for the exclusive purpose of holding title to property, collecting income therefrom, and turning over the entire amount thereof, less expenses, to an organization which itself is exempt under IRC 501(a).