Exempt organizations - Uncle Fed's Tax*Board
Exempt organizations - Uncle Fed's Tax*Board
Exempt organizations - Uncle Fed's Tax*Board
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<strong>Exempt</strong> <strong>organizations</strong><br />
for the purpose of promoting a common business<br />
interest and bettering the business conditions of<br />
one or more lines of business is exempt as a business<br />
league even though its principal activity is the<br />
advocacy of legislation which is germane to such<br />
common business interest. Rev. Rul. 54-442<br />
modified. §1.501(c)(6)–1. (Sec. 501, ’86 Code.)<br />
Rev. Rul. 61-177, 1961-2 C.B. 117.<br />
218.73 Business leagues; legislative activities;<br />
incidental. A corporation organized and operated<br />
primarily for the purposes of promoting a common<br />
business interest and bettering the conditions of<br />
independent business, whose activities include the<br />
furtherance of a legislative program, is exempt as<br />
a business league. Modified by Rev. Rul. 61–177<br />
to the extent that it suggests that engaging in other<br />
than incidental legislative activities will necessarily<br />
disqualify an organization. §39.101(7)–1.<br />
(Sec. 101, ’39 Code; Sec. 501, ’86 Code.)<br />
Rev. Rul. 54-442, 1954-2 C.B. 131.<br />
218.74 Business leagues; luncheon and bar<br />
facilities furnished members. An organization of<br />
business and professional persons of a community,<br />
providing luncheon and bar facilities for its<br />
members but having no specific program directed<br />
to the improvement of business conditions, does<br />
not qualify for exemption. §1.501(c)(6)–1. (Sec.<br />
501, ’86 Code.)<br />
Rev. Rul. 70-244, 1970-1 C.B. 132.<br />
218.75 Business leagues; luncheon meetings<br />
to discuss industry problems. An organization<br />
composed of businessmen may qualify for exemption<br />
where its activities are limited to holding luncheon<br />
meetings devoted to a discussion, review,<br />
and consideration of the various problems in a particular<br />
industry directed to the improvement of<br />
business conditions as a whole. §1.501(c)(6)-1.<br />
(Sec. 501, ’86 Code.)<br />
Rev. Rul. 67-295, 1967-2 C.B. 197.<br />
218.76 Business leagues; manufacturers’<br />
organization; research for members. A nonprofit<br />
manufacturers’ organization that conducts<br />
research and makes the results available only to its<br />
members rather than to the industry as a whole<br />
does not qualify for exemption. §1.501(c)(6)-1.<br />
(Sec. 501, ’86 Code.)<br />
Rev. Rul. 69-106, 1969-1 C.B. 153.<br />
218.77 Business leagues; manufacturers’<br />
organization; testing and certification; product<br />
standard. A nonprofit organization formed by<br />
manufacturers of a particular product to conduct a<br />
program of testing and certification of the product<br />
to establish acceptable standards within the industry,<br />
as a whole, qualifies for exemption.<br />
§1.501(c)(6)-1. (Sec. 501, ’86 Code.)<br />
Rev. Rul. 70-187, 1970-1 C.B. 131.<br />
218.78 Business leagues; motor carriers<br />
association. A motor carriers’ association formed<br />
to make recommendations with respect to the<br />
establishment, revision, and change of rates, tariffs,<br />
rules, regulations, and practices for its members<br />
who are regulated by the Interstate Commerce<br />
Commission and to publish the prevailing<br />
rates may be exempt from tax. §1.501(c)(6)–1.<br />
(Sec. 501, ’86 Code.)<br />
Rev. Rul. 67-393, 1967-2 C.B. 200.<br />
218.79 Business leagues; neighborhood community<br />
association. A nonprofit organization that<br />
is operated to promote the common business interests<br />
of its members, a majority of whose businesses<br />
are located in one particular shopping center,<br />
has a voluntary membership open to all<br />
businesses in a neighborhood community, and is<br />
not concerned with landlord-tenant matters relating<br />
to the shopping center qualifies for exemption.<br />
Rev. Rul. 73-411 distinguished. §1.501(c)(6)-1.<br />
(Sec. 501, ’86 Code.)<br />
Rev. Rul. 78-225, 1978-1 C.B. 159.<br />
218.80 Business leagues; nonprofit consumer<br />
cooperatives. An association of nonprofit consumer<br />
cooperatives which promotes the cooperative<br />
method of doing business may qualify for<br />
exemption. §1.501(c)(6)–1. (Sec. 501, ’86 Code.)<br />
Rev. Rul. 67-264, 1967-2 C.B. 196.<br />
218.81 Business leagues; packaging<br />
manufacturers. An organization of packaging<br />
manufacturers which includes in its industry<br />
advertising references to brand name products<br />
merchandised in its packaging material may be<br />
exempt from tax. §1.501(c)(6)–1. (Sec. 501, ’86<br />
Code.)<br />
Rev. Rul. 67-344, 1967-2 C.B. 199.<br />
218.82 Business leagues; promoting members’<br />
interests. A trade organization that confines<br />
its membership to dealers franchised by a particular<br />
corporation and its activities to promoting the<br />
business interests of its members does not satisfy<br />
the “line of business” test of reg. 1.501(c)(6)–1<br />
and is not a business league. §1.501(c)(6)–1. (Sec.<br />
501, ’86 Code.)<br />
National Muffler Dealers Assn., Inc., 440 U.S.,<br />
Ct. D. 1997, 1979-1 C.B. 198.<br />
218.83 Business leagues; promoting sale of<br />
automobile for dealer-members. An organization<br />
composed of dealers in a certain make of automobile<br />
in a designated area, organized and operated<br />
for the primary purpose of financing general<br />
advertising campaigns to promote, with funds<br />
contributed by dealer-members, the sale of that<br />
make of automobile, is performing particular services<br />
for its members instead of the automotive<br />
industry as a whole and is not entitled to exemption.<br />
I.T. 4053 superseded. §1.501(c)(6)–1. (Sec.<br />
501, ’86 Code.)<br />
Rev. Rul. 67-77, 1967–1 C.B. 138.<br />
218.84 Business leagues; promoting single<br />
brand or product. The Revenue Service will not<br />
follow the Pepsi-Cola Bottlers’ Assn. decision<br />
which held that an association, whose members<br />
bottle and sell a single franchised soft-drink product<br />
and whose purpose is to promote that product,<br />
was exempt as a business league. It is the position<br />
of the Service that <strong>organizations</strong> promoting a<br />
single brand or product within a line of business do<br />
not qualify for exemption. §1.501(c)(6)–1. (Sec.<br />
501, ’86 Code.)<br />
Rev. Rul. 68-182, 1968-1 C.B. 263.<br />
218.85 Business leagues; public health and<br />
welfare; professional membership. A nonprofit<br />
organization whose membership consists of individuals<br />
engaged in various professions organized<br />
to promote a common business interest and to<br />
improve professional services and techniques of<br />
the members in the field of public health and welfare,<br />
qualifies for exemption. §1.501(c)(6)-1.<br />
(Sec. 501, ’86 Code.)<br />
Rev. Rul. 70-641, 1970-2 C.B. 119.<br />
218.86 Business leagues; publishing directory<br />
of members; granting franchises. A nonprofit<br />
organization of individuals in the business<br />
of furnishing finance adjusting services, which<br />
assigns exclusive franchise areas to its members<br />
and publishes and distributes to their potential customers<br />
a directory containing members’ names<br />
and addresses, is performing particular services<br />
for its members and does not qualify for exemption.<br />
§1.501(c)(6)-1. (Sec. 501, ’86 Code.)<br />
Rev. Rul. 76-409, 1976-2 C.B. 154.<br />
218.87 Business leagues; publishing tourist<br />
guidebook. An organization formed to promote<br />
the tourist industry in its area and whose principal<br />
activity is the publication of a year book consisting<br />
largely of paid advertisements for its members is<br />
not entitled to exemption. §1.501(c)(6)–1. (Sec.<br />
501, ’86 Code.)<br />
Rev. Rul. 65-14, 1965-1 C.B. 236.<br />
218.88 Business leagues; rewards to deter<br />
crime against members. An organization created<br />
to improve the business conditions of financial<br />
institutions by offering rewards for information<br />
leading to the arrest and conviction of individuals<br />
committing crimes against its member institutions<br />
qualifies for exemption. §1.501(c)(6)–1. (Sec.<br />
501, ’86 Code.)<br />
Rev. Rul. 69–634, 1969-2 C.B. 124.<br />
218.89 Business leagues; scientific research<br />
association. A nonprofit association composed of<br />
members of a particular industry to develop new<br />
and improved uses for existing products of the<br />
industry does not qualify for exemption under section<br />
501(c)(3), but may qualify for exemption<br />
under section 501(c)(6). §§1.501(c)(3)-1,<br />
1.501(c)(6)-1. (Sec. 501, ’86 Code.)<br />
Rev. Rul. 69-632, 1969–2 C.B. 120.<br />
218.90 Business leagues; shopping center<br />
merchants’ association. An association of merchants<br />
whose businesses constitute a shopping<br />
center does not qualify for exemption where the<br />
association expends its funds and engages exclusively<br />
in advertising the names of member merchants<br />
and their merchandise in various newspapers<br />
and on television and radio to attract<br />
customers to the shopping center. Clarified by<br />
Rev. Rul. 73-411. §1.501(c)(6)-1. (Sec. 501, ’86<br />
Code.)<br />
Rev. Rul. 64-315, 1964–2 C.B. 147.<br />
218.91 Business leagues; shopping center<br />
merchants’ association. A shopping center merchants’<br />
association whose membership is<br />
restricted to and required of the tenants of a oneowner<br />
shopping center and their common lessor,<br />
and whose activities are directed to promoting the<br />
general business interests of its members, does not<br />
qualify as a business league or chamber of commerce<br />
under section 501(c)(6). This Revenue Ruling<br />
will not be applied to taxable years beginning<br />
before January 1, 1974, with respect to <strong>organizations</strong><br />
that have been relying upon ruling or determination<br />
letters issued under section 501(c)(6).<br />
Distinguished by Rev. Rul. 78–225. Rev. Rul.<br />
64-315 clarified. §§1.501(c)(6)-1, 301.7805-1.<br />
(Secs. 501, 7805; ’86 Code.)<br />
Rev. Rul. 73-411, 1973–2 C.B. 180.<br />
218.92 Business leagues; small loan companies.<br />
An organization of small loan companies,<br />
formed in response to regulations issued by a state<br />
department of banking to promote control of consumer<br />
lending, maintains a file of all open loans<br />
made by its members and furnishes this information<br />
to them in order to prevent a borrower from<br />
obtaining small loans in excess of a specified sum<br />
at any one time, may qualify for exemption.<br />
§1.501(c)(6)-1. (Sec. 501, ’86 Code.)<br />
Rev. Rul. 67–394, 1967–2 C.B. 201.<br />
218.93 Business leagues; specialized reference<br />
library. An organization whose only activity<br />
is providing a reference library of “electric logs”,<br />
maps, and information services used solely by its<br />
members in their exploration businesses is not<br />
exempt from tax. §1.501(c)(6)–1. (Sec. 501, ’86<br />
Code.)<br />
Rev. Rul. 67-182, 1967–1 C.B. 141.<br />
218.94 Business leagues; students in a profession.<br />
An organization whose membership is composed<br />
of students studying for a degree in a particular<br />
profession and that was formed to promote the<br />
students’ interests as future members of that profession<br />
may qualify for exemption.<br />
§1.501(c)(6)-1. (Sec. 501, ’86 Code.)<br />
Rev. Rul. 77–112, 1977-1 C.B. 149.<br />
218.95 Business leagues; subsidizing lawsuit;<br />
prevention of air pollution. Subsidizing the prosecution<br />
of a lawsuit for an injunction to prevent<br />
air pollution of a region did not cause an organization<br />
of growers and processors of agricultural