The major benefit is that the funds earned by the club through membership sales and tournament operations are not taxable. Additionally, donors to your club can take a tax deduction for their contributions.
The increased accountability is not a requirement by the IRS, but was a condition that I had put on the privilege of being included in any group exemption covered under the state association. Since I am making certain representations to the IRS regarding the affiliate clubs that would be included in the group exemption, I wanted to make sure that the clubs were being operated in a fiscally responsible manner.
