IRS Logo
Print - Click this link to Print this page

Business league: Performing particular services

An organization's performance of particular services for its members or others is not an exempt activity under Code section 501(c)(6).  Although such activities do not alone preclude exemption, an organization engaged primarily in performing particular services is not exempt under section 501(c)(6).

Examples:

  • Advertising that carries the names of members may be performing particular services; but promoting the business of an industry by encouraging the use of its products is not.
  • Furnishing particular information and specialized individual services to members through publishing and other means to effect economies in business operations may be performing particular services; but educating members on how to improve their business results is not.
  • Operating a multiple listing service for members of a real estate involves performing particular services.
  • Operating parking lots for members' customers may be performing particular services, but providing parking as part of a plan to promote patronage of businesses in an area may not be.
  • Providing insurance coverage often involves performing particular services.  Similarly, negotiating  discounted healthcare or similar services for members and/or nonmembers and providing related services may be performing particular services.

 


Return to Life Cycle of a Business League (Trade Association)

Page Last Reviewed or Updated: 15-Jul-2014