Ever hear of a social savings club? Do you have an idea as to what type of organization this is all about? Have you ever wanted to get a group of folks together to save money towards a common goal? If so, you probably thought about a social savings club. A social savings club is a type of entity where you have groups of individuals saving money together for the same purpose. It could be to try and work towards buying a big-ticket item, working towards retirement, etc.
A social savings club gets everyone together to contribute to the group savings plan. It is treated in the eyes of the Internal Revenue Service as to any other type or organization. Any of the interests that the saved funds earn needs to be passed down to the members, just like you would see from a partnership. With the membership agreement, you should have all the names of the members, their details as well as what they have saved to date to contribute to the larger sum of funds available to the group.