Sunset, cocktails and legally risky business

The Ocean Pines Association’s tax-exempt status and federal anti-discrimination laws suggest that a more suitable name for the proposed “Sunset and Cocktails” adults-only night at the Yacht Club pool would be “Sunset, Cocktails and Risky Business.”

That’s a shame, too, because even new parents will sometimes confess to a desire to get away from the kids for an hour or two. That’s what this proposal aims to do: give grownups an opportunity to relax and be themselves one night a month.

The law is the law, however, as was made clear to the OPA Board of Directors back in 2017, when legal counsel advised the board that the adults-only designation at the Oasis pool should be dropped to protect the association from being sued for discrimination.

Even worse, as it was pointed out at the time, is that losing a discrimination lawsuit could jeopardize the OPA’s tax-exempt status as a nonprofit 501 (c) (4) social welfare organization, and that would have serious financial consequences no one even wants to contemplate.

Given these circumstances, association members have limited options regarding monthly grownups-only nights at any amenity that is open to the public.

They could, for instance, hold such gatherings anyway and see if anyone complains or brings it to the attention of the IRS for legitimate reasons or out of spite.

Another possibility mentioned in recent discussions is for a group of people to rent the pool for a night for a “private event,” assuming that the cost of such a rental isn’t set lower than it ordinarily would be. That might work, but then …

The only remaining alternative is to forget this idea, however appealing it might be. It’s tough to outsmart the IRS and members should weigh that risk against the rewards of a monthly night out with friends of a certain age.

Generally speaking, the best advice in this or any other legally uncertain situation is to listen to the advice of the people being paid to give it.