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

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