Exempt organizations - Uncle Fed's Tax*Board

Exemtp organizations
the-job training, and provide books and supplies
used in the training is exempt from tax.
§1.501(c)(3)-1. (Sec. 501, ’86 Code.)
Rev. Rul. 67-72, 1967-1 C.B. 125.
218.23 Art exhibit sponsorship. A nonprofit
organization created to foster and develop the arts
by sponsoring a public art exhibit at which the
works of unknown but promising artists are
selected by a panel of qualified judges for viewing
and are gratuitously displayed is exempt from tax.
§1.501(c)(3)-1. (Sec. 501, ’86 Code.)
Rev. Rul. 66-178, 1966-1 C.B. 138.
218.24 Art gallery. A cooperative art gallery
formed and operated by a group of artists for the
purpose of exhibiting and selling their works does
not-qualify for exemption. Clarified by Rev. Rul.
76-152. §1.501(c)(3)-1. (Sec. 501, ’86 Code.)
Rev. Rul. 71-395, 1971-2 C.B. 228.
218.25 Art gallery. A nonprofit organization
formed by art patrons to promote community
understanding of modern art trends by selecting
for exhibit, exhibiting, and selling art works of
local artists, retaining a commission on sales less
than customary commercial charges and not sufficient
to cover the cost of operating the gallery,
does not qualify for exemption. Rev. Rul. 71-395
clarified. §1.501(c)(3)–1. (Sec. 501, ’86 Code.)
Rev. Rul. 76-152, 1976-1 C.B. 151.
218.26 Association to enroll athletes in college.
A nonprofit organization which raises funds
to be used in travel and other activities to interview
and persuade prospective students with outstanding
athletic ability to attend a particular university,
and which is not an integral part of such institution,
does not qualify for exemption.
§1.501(c)(3)-1. (Sec. 501, ’86 Code.)
Rev. Rul. 56-13, 1956-1 C.B. 198.
218.27 Awarding of scholarships. The awarding
of scholarships by a foundation solely to undergraduate
members of a designated fraternity will
not preclude it from exemption as an educa-tional
organization. §1.501(c)(3)–1. (Sec. 501, ’86
Code.)
Rev. Rul. 56-403, 1956-2 C.B. 307.
218.28 Awards for outstanding achievement.
A corporation organized to examine and evaluate
the achievements and contributions of citizens of
a particular State toward the progress and betterment
of human endeavor and to make awards to
such citizens is exempt from tax as a charitable
organization which benefits the community.
§1.501(c)(3)-1. (Sec. 501, ’86 Code.)
Rev. Rul. 66-146, 1966-1 C.B. 136.
218.29 Bar association; local. A city bar
association, exempt under section 501(c)(6), that
primarily directs its activities to the promotion and
protection of the practice of law may not be reclassified
as an educational or charitable organization
exempt under section 501(c)(3). G.C.M. 4805
superseded. §§1.501(c)(3)-1, 1.501(c)(6)-1.
(Sec. 501, ’86 Code.)
Rev. Rul. 71-505, 1971-2 C.B. 232.
218.30 Benefits inuring to donor; brand symbol.
Acceptance of funds and adjacent realty by an
exempt organization for establishing a public park
will not affect its exempt status even though the
corporate donor retained the right to continue
using the picture of a certain scenic view in the
park as its brand symbol. §1.501(c)(3)–1. (Sec.
501, ’86 Code.)
Rev. Rul. 66-358, 1966-2 C.B. 218.
218.31 Benefits inuring to donor; corporate
name. A nonprofit organization formed to create
and operate a replica of an early American village
is engaging in educational activities similar to
those of a museum and qualifies for exemption
even though the corporation, which donated the
land and a substantial percentage of the organization’s
support, benefits by having the village
named after it and by having its name associated
with the village through both the corporation’s and
the organization’s advertising. §1.501(c)(3)-1.
(Sec. 501, ’86 Code.)
Rev. Rul. 77-367, 1977-2 C.B. 193.
218.32 Benefits inuring to founder. An organization,
formed to operate the activities previously
conducted by its principal founder, which
plans to reimburse the founder for expenditures
made by him in prior years in the conduct of these
activities, is not entitled to exemption, since a portion
of the net earnings of the organization will
inure to the benefit of the founder. §1.501(c)(3)-1.
(Sec. 501, ’86 Code.)
Rev. Rul. 55–610, 1955-2 C.B. 262.
218.33 Blood bank. A blood bank organized
and operated to provide a community with permanent
facilities for the collection and storage of
human blood and blood products and to provide
for the public distribution thereof may be exempt
from tax; however, the selling of blood and blood
products to commercial laboratories is unrelated
trade or business. Modified by Rev. Rul. 78–145.
§§1.501(c)(3)-1, 1.511-2, 1.513-1. (Secs. 501,
511, 513; ’86 Code.)
Rev. Rul. 66-323, 1966-2 C.B. 216.
218.34 Boat safety standards. A nonprofit
organization formed to formulate and recommend
practices and safety standards for those who
design, manufacture, and operate small boats may
be exempt from tax. §1.501(c)(3)-1. (Sec. 501, ’86
Code.)
Rev. Rul. 68-164, 1968–1 C.B. 252.
218.35 Broadcasting rights; professional
tournaments. The status of an organization
exempt under section 501(c)(6) created to promote
interest in, elevate the standards of, and conduct
tournaments in, a certain professional sport
will not be adversely affected merely because its
primary support is derived from the sale of television
broadcasting rights to the tournaments it conducts.
Rev. Rul. 58-502 clarified. §1.501(c)(6)-1.
(Sec. 501, ’86 Code.)
Rev. Rul. 80-294, 1980–2 C.B. 187.
218.36 Broadcasting station; free air time to
political candidates. An organization exempt
under section 501(c)(3) of the Code, operating a
broadcasting station presenting religious, educational,
and public interest programs, is not participating
in political campaigns on behalf of public
candidates in violation of the provisions of that
section by providing reasonable air time equally
available to all legally qualified candidates for
election to public office in compliance with section
312(a)(7) of the Federal Communications Act
of 1934, as amended, and endorsing no candidate
or viewpoint. §1.501(c)(3)–1. (Sec. 501, ’86
Code.)
Rev. Rul. 74-574, 1974-2 C.B. 160.
218.37 Bus transportation for community’s
isolated areas. An organization formed as a
Model Cities demonstration project under the
Demonstration Cities and Metropolitan Development
Act of 1966 to provide bus transportation to
isolated areas of a community not served by the
existing city bus system is providing bus service
under the authority of the Federal and local governments
and qualifies for exemption.
§1.501(c)(3)-1. (Sec. 501, ’86 Code.)
Rev. Rul. 78–68, 1978–1 C.B. 149.
218.38 Bus transportation for private school
children. A nonprofit organization, formed by
parents of pupils attending a private school, that
provides school bus transportation for its members’
children serves a private rather than a public
interest and does not qualify for exemption.
§1.501(c)(3)-1. (Sec. 501, ’86 Code.)
Rev. Rul. 69-175, 1969–1 C.B. 149.
218.39 Bus transportation for senior citizens
and handicapped. A nonprofit organization that
provides, upon request, low cost bus transportation
to senior citizens and handicapped persons in
a community where public transportation is
unavailable or inadequate qualifies for exemption
as operated exclusively for charitable purposes.
§1.501(c)(3)-1. (Sec. 501, ’86 Code.)
Rev. Rul. 77-246, 1977-2 C.B. 190.
218.40 Business leagues; advancement of
given profession. An organization formed to provide
specific services to members of a given profession
and to those preparing to enter the profession
on matters relating to their practices does not
qualify for exemption. §1.501(c)(6)-1. (Sec. 501,
’86 Code.)
Rev. Rul. 67–176, 1967–1 C.B. 140.
218.41 Business leagues; advertising agencies.
A nonprofit organization composed of advertising
agencies, which verifies the advertising
claims of publications selling advertising space
and makes reports available to members of the
advertising industry generally, qualifies for
exemption. §1.501(c)(6)–1. (Sec. 501, ’86 Code.)
Rev. Rul. 69–387, 1969-2 C.B. 124.
218.42 Business leagues; advertising members’
publications. An organization operated primarily
for the purpose of promoting, selling, and
handling the national advertising in its members’
publications is engaged in the performance of particular
services for individual members and is not
entitled to exemption. (Sec. 501, ’86 Code.)
Rev. Rul. 56-84, 1956-1 C.B. 201.
218.43 Business leagues; advertising products
of members. A local organization whose
principal activity consists of furnishing information
to and advertising the products of its members
engaged in the building construction business is
performing particular services for them and is not
exempt as a business league. Clarified by Rev.
Rul. 65–164 and Rev. Rul. 72-211.
§1.501(c)(6)-1. (Sec. 501, ’86 Code.)
Rev. Rul. 56-65, 1956-1 C.B. 199
218.44 Business leagues; appointing travel
agents. A nonprofit organization, formed by carriers
engaged in regular transoceanic passenger service,
whose primary activity consists of appointing
travel agents to book passenger travel on its
members’ ships is performing particular services
for its members and does not qualify for exemption.
§1.501(c)(6)-1. (Sec. 501, ’86 Code.)
Rev. Rul. 74-228, 1974-1 C.B. 136.
218.45 Business leagues; attracting national
conventions. A nonprofit organization, formed by
a city’s civic leaders, public officials, businessmen,
and representatives of the community-atlarge
to encourage conventions of national organizations
in the city by making arrangements for
facilities, services, and administrative support
necessary to run a convention. qualifies for
exemption. §1.501(c)(6)–1. (Sec. 501, ’86 Code.)
Rev. Rul. 76-207, 1976-1 C.B. 158.
218.46 Business leagues; bid registry. The
operation of a bid registry which is open to all individuals
or firms in a particular trade or industry
and which has been established and operated as a
means of encouraging fair bidding practices
within the industry is an appropriate activity for an
association which otherwise meets the requirements
for exemption. §1.501(c)(6)–1. (Sec. 501,
’86 Code.)
Rev. Rul. 66-223, 1966-2 C.B. 224.
218.47 Business leagues; board of trade. A
nonprofit organization formed to regulate the sale
of a specified agricultural commodity to assure