Business Activities under Code Section 501(c)(6)


An organization whose primary purpose is to engage in a regular business of a kind ordinarily carried on for a profit is not a business league, and does not qualify for exemption under Internal Revenue Code section 501(c)(6). For example, the following have been found to be non-exempt business activities:

  • Testing the safety of electrical products for commercial enterprises
  • Selling credit information and collection services
  • Employment agency
  • Providing commercial towing services for members of an automobile association
  • Laboratory services that are an organization's principal activity and only source of income
  • Providing insurance
  • Selling television advertising rights

Additional information:

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