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Avatan Nudist Club in East Bethel, MN:
Avatan Nudist Club in East Bethel, MN:
Safety lapses, IRS compliance issues, and board overreach exposed. Public records and member stories reveal the truth.
Safety lapses, IRS compliance issues, and board overreach exposed. Public records and member stories reveal the truth.
Avatan Nudist Club Operating Outside IRS Tax-Exempt Safe Harbor Limits for Multiple Years
Avatan Nudist Club Operating Outside IRS Tax-Exempt Safe Harbor Limits for Multiple Years
Public Form 990 Filings Show Consistent Non-Member Revenue Exceeding 15% Threshold
Public Form 990 Filings Show Consistent Non-Member Revenue Exceeding 15% Threshold
East Bethel, Minnesota – February 27, 2026
East Bethel, Minnesota – February 27, 2026
Serious Potential Consequences for Avatan Members
Independent analysis of publicly available IRS Form 990 filings reveals that Avatan Inc. (EIN 41-6040753), a 501(c)(7) tax-exempt social and recreational club operating as Avatan Family Nudist Campground, has reported non-member (visitor) revenue consistently above the IRS 15% safe harbor limit for facility-use income in every recent year examined.
Under IRC §501(c)(7) and Revenue Procedure 71-17, no more than 15% of a social club’s gross receipts may come from non-member use of club facilities and services (day passes, Sun Pass introductory fees, nightly RV/tent/cabin rentals, Saturday food sales to visitors, etc.). Exceeding this limit triggers a facts-and-circumstances review to determine whether the club is still “substantially” operated for the pleasure and recreation of its members.
In each of the four years examined, the percentage of revenue from non-member facility use has exceeded the 15% IRS safe harbor threshold — sometimes by a substantial margin.
Avatan continues to heavily promote visitor access through its website, offering:
Day/grounds fees of $45–$60 per person or couple
Sun Pass ($325 for 60-day unlimited introductory access)
Evening specials ($35)
Nightly and weekly RV, tent, and cabin rentals (four cabins available)
Saturday food sales to visitors
The club is also listed publicly as a state-licensed campground on ExploreMinnesota.com, accepting reservations from non-members and emphasizing visitor-friendly amenities including pool, hot tub, and events. In fact, Avatan's promotional YouTube video openly states that the club “missed its visitors” in 2020, highlighting just how dependent they have become on outside revenue.
Implications
This multi-year pattern raises significant questions about whether Avatan remains “substantially” operated for the benefit of its members, as required for continued 501(c)(7) tax-exempt status. Excess non-member facility-use income can result in unrelated business taxable income (UBTI) assessments or, in more serious cases, revocation of exempt status with retroactive tax consequences.
All figures are drawn directly from Avatan Inc.’s publicly filed Form 990 returns (available via ProPublica and Cause IQ) and the club’s own current rates page.
About This Site
AvatanMinnesota.com is an independent research project compiling public records, filings, rates information, and former member accounts. It is not affiliated with Avatan Inc. or any AANR organization. The purpose is transparency and public awareness. All statements are based on verifiable sources — readers are encouraged to review the original 990 filings and club website independently.
An incident that happened at a similar nearby campground.
This man had a history as a sex offender yet somehow became Avatan's President.
Avatan former President, Board Member and convicted child sex offender.
This guy was a convicted sex offender and was allowed to join Avatan where he befriended the family of a young boy. Unfortunately he was able to gain the families trust.
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