Jokingly losing money, or not making any, isn't what Non-Profit is about. The Feds and most State/Local Governments do not tax churches and charities for their sponsored charitable activities. If the Catholic Church or Red Cross owns a office building that hey occupy for their charitable activities, they pay no taxes for that; however, if they RENT the building and get income it's treated as non-related business income and the building becomes "taxable".

There a lot of complicated rules of how costs are applied, whether a fee was to support the club or rent space independently, etc., etc.

I'm would assume that your Treasurer who is an accountant that tried to put the Club's position in the best light.

I was just asking.