The following examples illustrate activities not furthering the exempt purposes of a labor organization under Code section 501(c)(5). If non-qualifying activities are an organization's principal activity, the organization may lose its exempt status.
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Providing employment to members through a business activity.
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An organization, created by an association of manufacturers and a labor union, that collected and paid to government agencies employment taxes.
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A savings plan established pursuant to a collective bargaining agreement.
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A strike fund controlled by private individuals who controlled the organization that paid benefits to workers.
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Return to Life Cycle of a Labor Organization
Date posted: November 6, 2006
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