CHAPTER 7

Labor, Agricultural, and Horticultural Organizations: § 501(c)(5)

§ 7.2 Agricultural Groups

(c) Special Exception

§ 7.2 Agricultural Groups

p. 163. Add after second introductory paragraph:

Organization operated to promote the dairy industry's acceptance of registered “D breed” due to the breed's genetic and economic contribution sought reclassification of its IRC § 501(c)(5) status to IRC § 501(c)(3). Though its magazine, exhibitions, and scholarships have an educational component, these programs were deemed insubstantial in relation to activities conducted to promote the Breed D for the economic benefits of its members and therefore precluded exemption under § 501(c)(3).1

(c) Special Exception

p. 166. Revise threshold for member dues excluded from classification as unrelated business income to $158 for 2014.2

1 Priv. Ltr. Rul. 201144030.

2 Rev. Proc. 2013-35, 2013-47 IRB 537.

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