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Non-profit organizations ruled tax exempt under section §501(c)(6) of the Internal Revenue Code include business leagues, chambers of commerce, trade associations, real estate boards, and boards of trade. Contributions to §501(c)(6) organizations are not deductible as charitable donations for federal income tax purposes. Donations may be deducted as a business expense if they are "ordinary and necessary" in the conduct of the taxpayer's business. give.org

IRS Site - Non Profits IRS Technical Instruction Manual

§ 501. Exemption from tax on corporations, certain trusts, etc.
(c) List of exempt organizations.--The following organizations are referred to in subsection (a):

(6) Business leagues, chambers of commerce, real-estate boards, boards of trade, or professional football leagues (whether or not administering a pension fund for football players), not organized for profit and no part of the net earnings of which inures to the benefit of any private shareholder or individual. Cornel's Site

IRS Publicatino 557 .pdf

165 pages from Westlaw... should run $12 one time use fee

prof·it [ próffit ]

noun (plural prof·its)1. business excess of income over expenditure: the excess of income over expenditure during a particular period of time msn.com/dictionary

a nonprofit corporation is not prohibited from making a profit, but there are limitations on what it can do with its "profits."not-for-profit.org

Non-profit

(thing) by indestructible (1.8 d) (print)

1 C!

Fri May 17 2002 at 0:48:11

A non-profit organization can be defined as an entity without a profit objective. That sounds altruistic and appropriate for charities and government organizations but it is also misleading.

What differentiates a non-profit from a regular enterprise is that any money that does not cover costs gets re-invested into the business. So, the basic revenue equation is as follows:

Revenue-Cost=Profit

A Non-profit will reinvest their profit into the next year, calling it "retained earnings".

This sounds like like an ideal way to provide services efficiently and effectively. It should mean that the dollars we spend do nothing more then cover the cost of doing business. A fair price will be offered and the money we spend will be creating pure value instead of getting pocketed.

So, why do some directors at the Red Cross Make $300 000 (USD) and why do we find ourselves paying exorbitant rates for basic government services? Well, one way to avoid making profit is by inflating costs. An inflated cost like an executive's salary, an exotic convention local or corporate boxes at sporting events.

So, non-profit is not the opposite of profit as suggested above. Non-profits should definitely be subject to the same scrutiny as any basic capitalist enterprise. everything2.com

§ 532. Corporations subject to accumulated earnings tax

(a) General rule.--The accumulated earnings tax imposed by section 531 shall apply to every corporation (other than those described in subsection (b)) formed or availed of for the purpose of avoiding the income tax with respect to its shareholders or the shareholders of any other corporation, by permitting earnings and profits to accumulate instead of being divided or distributed.

(b) Exceptions.--The accumulated earnings tax imposed by section 531 shall not apply to--

(1) a personal holding company (as defined in section 542),

(2) a foreign personal holding company (as defined in section 552),

(3) a corporation exempt from tax under subchapter F (section 501 and following), or

(4) a passive foreign investment company (as defined in section 1297).

(c) Application determined without regard to number of shareholders.--The application of this part to a corporation shall be determined without regard to the number of shareholders of such corporation.

Family & Criminal Law Law Offices of Jose Medina, Esq

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