The Law of Tax-Exempt Organizations, 10th Edition 2014 Cumulative Supplement

CHAPTER THIRTEEN

Social Welfare Organizations

§ 13.1 Concept of Social Welfare

(b) Benefits to Members

*§ 13.2 Requirement of Community

*(a) Community and Condominium Associations

§ 13.2A Conduct of Business (New)

*§ 13.4 Comparison with Charitable Organizations

§ 13.1 CONCEPT OF SOCIAL WELFARE

(b) Benefits to Members

p. 355, carryover paragraph. Insert as last sentence:

As still another illustration, it was held that, although an exempt social club was entitled to retain its exempt status, the club's operation of a beach club and parking lots was not substantially related to the promotion of community welfare because they are not open to the public.^46.1

§ 13.2 REQUIREMENT OF COMMUNITY

(a) Community and Condominium Associations

*p. 360, carryover paragraph. Insert as last sentence:

An organization established for the purpose of developing and distributing dental benefit products was denied recognition of exemption as a social welfare organization, in part because it was not promoting the welfare of a community.^87.1

p. 360, n. 93. Insert following existing text:

A mobile home park is not a community for this purpose (Priv. Ltr. Rul. 201014068).

*p. 362. Insert following first paragraph, before heading:

§ 13.2A CONDUCT OF BUSINESS (NEW)

As noted, the promotion of social welfare does not include activities that primarily constitute “carrying on a business with the general public in a manner similar to organizations which are operated for profit.”^108.1 Also as noted, the IRS is applying ...