A bill to amend the Internal Revenue Code of 1954 with respect to the tax treatment of social clubs and certain other membership organizations.

Exempts clubs organized for pleasure, recreation and other nonprofitable purposes, substantially all of the activities of which are for such purposes and no part of the net earnings of which inures to the benefit of any private shareholder, from taxation under the Internal Revenue Code of 1954. States that for the purpose of determining the unrelated business income of such an organization deductions allowed corporations on certain dividends shall be treated as not directly connected with the production of gross income. Provides that such deductions allowed shall not be allowed to any organization which takes a deduction attributable to furnishing services, insurance, goods, or other items of value to members.