Our own boards and subjects get as opposed to other hobby boards.... To get word out we have to use sites not owned by the club and call them "Defacto" club boards. I for one will make a greater effort to post more on our own boards in hopes of bringing more activity to them.
I know that some have said in the past that allowing members to sell to each other would violate some tax code or rule but as I looked into that it is just false. On www.PokerChipper.com , theChipBoard and at PCF sales between members flourish and drive traffic to the sites. I haven't been required to follow any codes or tax codes on Chipper as I am not the one selling anything or profiting from those sales.
Does anyone in the club have a legitimate explanation as to why we cant have a member marketplace on our forum ?
I have not had to guarantee or intervene in any sale thats occured on www.pokerchipper.com in any major way and the club already boasts one of the benefits of membership is that they are able to help with disputes between members. I do the same but disclose that we are not responsible for transactions between seller and buyer in the end.
To drive traffic to our own sites is key to new driving new membership to the club through exposure. Driving sales at eBay is detrimental to the hobby and to the club as all it does is make money for eBay and drive up the price of chips. I for one have made my last chip purchase on eBay as prices are simply crazy there and on top of that the taxes and shipping prices are crazy. Sellers who play the make $2 on the shipping price drives me nuts!
Dan
Google "can a 501c3 non-profit forum allow online sales between members"
It seems to remain a very grey area
Yes—a 501(c)(3) can allow online sales between its members, but there are some important rules to keep it compliant.
✅ What's generally allowed
A nonprofit can facilitate member-to-member sales (like a marketplace, classifieds, or auction system) if:
The activity supports or is related to the organization's charitable purpose, or at least doesn't conflict with it.
The nonprofit is not primarily operating as a commercial marketplace.
Any income the nonprofit earns (fees, commissions, etc.) is handled properly.
⚠️ Key compliance issues
1. Private benefit / inurement
The nonprofit cannot exist to benefit specific members financially.
If members are profiting from sales, that's fine—but the organization itself can't be structured mainly to enable that profit.
Avoid giving special advantages to insiders (board members, founders, etc.).
2. Unrelated Business Income (UBI)
If the nonprofit takes a cut of sales, listing fees, or commissions, that revenue could be considered unrelated business income (UBIT) unless:
The marketplace activity is substantially related to the mission, or
An exception applies (e.g., volunteer-run, convenience of members, etc.).
3. Mission alignment
If your nonprofit's purpose is, say, "supporting artists," then a member art marketplace makes sense.
If your mission is unrelated (e.g., environmental education), a general marketplace could raise red flags.
4. Scale matters
Occasional or small-scale member sales → usually fine
Large, ongoing marketplace resembling eBay → higher scrutiny
5. State laws & consumer protection
You may need:
Terms of service
Disclaimers (you're not the seller)
Sales tax considerations depending on structure
💡 Best practices
Structure it like a community benefit, not a profit engine
Charge reasonable, cost-covering fees (not profit-maximizing)
Clearly document how it supports your mission
Keep governance clean (no insider favoritism)
👍 Bottom line
Yes, it's allowed—but it must be secondary to your mission and not primarily designed to generate profit for members or the organization.
All of which we meet No grey....
That actually puts you in a pretty favorable position—an educational 501(c)(3) like the Casino Collectibles Association can justify member-to-member sales more easily than most nonprofits, as long as it's framed correctly.
Here's how it applies specifically to your situation:
✅ Why it can work for you
Because your mission is educational around casino collectibles, a marketplace can be positioned as:
Supporting study, preservation, and exchange of artifacts
Helping collectors access authentic items for research/education
Encouraging historical knowledge sharing tied to items
That creates a clear mission connection, which is the key test.
⚠️ Where you need to be careful
1. Don't let it become the main purpose
If your site starts to feel like:
"A marketplace for buying/selling chips"
instead of:
"An educational organization with a member exchange feature"
—you risk IRS scrutiny.
2. Avoid "private benefit" issues
You must not:
Promote specific sellers disproportionately
Give insiders (admins, board members) advantages
Structure things so the primary outcome is member profit
Members can benefit—but it must be incidental, not the purpose.
3. Revenue structure matters (UBIT risk)
If you monetize, here's how it breaks down:
Safer approaches:
Flat listing fees tied to cost recovery
Optional donations
Member dues that include access
Higher risk:
Taking a % commission on each sale (looks like a business)
Scaling into a major revenue stream
If it does generate meaningful revenue, you may owe Unrelated Business Income Tax (UBIT).
4. Keep the educational layer visible
This is where many orgs fail.
You should explicitly tie listings to education, for example:
Require descriptions with historical context
Link items to guides, archives, or catalog entries
Encourage discussion threads about items
Maintain a reference database alongside listings
💡 Smart structure (what I'd recommend)
Think of it as:
"Collector Exchange + Education Hub", not a marketplace.
Concrete setup:
Listings allowed for members only
No or minimal commissions (or very small, cost-based)
Each item optionally links to:
provenance info
rarity notes
related articles
Include disclaimers: you are not the seller
Keep it clearly a member benefit, not a public commercial platform
🚫 What would get you in trouble
Running it like eBay for casino chips
Making it a primary revenue driver
Marketing the org mainly around buying/selling
Preferential treatment for certain sellers
No educational framing at all
👍 Bottom line
Yes—this is one of the better use cases for a 501(c)(3) member marketplace.
You just need to:
Keep it mission-first
Ensure member profit is incidental
Avoid operating like a full commercial platform