IRS Logo
Print - Click this link to Print this page

Examples of Non-Qualifying Activities - Agricultural/Horticultural Organizations

The following activities illustrate activities not furthering the exempt purposes of an agricultural or horticultural organization under Code section 501(c)(5). If non-qualifying activities are an organization's principal activity, the organization may lose its exempt status.

  • Horse racing not conducted as part of an agricultural fair.
  • An organization formed by processors, packers and distributors of agricultural products to promote the sale and use of a processed agricultural product (such an organization may, however, qualify for exemption as a business league under Code section 501(c)(6)).
  • Supplying laborers for farmers



 Return to Life Cycle of an Agricultural or Horticultural Organization

 

Page Last Reviewed or Updated: 30-Apr-2013