have no net earnings inuring to the benefit of any member, and

have as their objects the betterment of the conditions of persons engaged in the pursuits of labor, agriculture, or horticulture, the improvement of the grade of their products, and the development of a higher degree of efficiency in their respective occupations. Reg. 1.501(c)(5)-1(a).

do not have as their principal activity to receive, hold, invest, disburse or otherwise manage funds associated with savings or investment plans or programs, including pension or other retirement savings plans or programs.

A labor organization described in IRC 501(c)(5) can pay death, sick, accident and similar benefits to its members because the payment of such benefits serves the members mutual interest in improving their shared working conditions. See Rev. Rul. 62–17, 1962–1 C.B. 87

On the other hand, the exempt purposes of an IRC 501(c)(5) agricultural organization are to better the conditions of those engaged in agricultural pursuits generally rather than to specifically benefit the individual members. Therefore, the holding of Rev. Rul. 67–251, 1967–2 C.B. 196, that the provision of welfare aid and financial assistance to the members of an IRC 501(c)(6) organization constitutes proscribed inurement, applies to IRC 501(c)(5) agricultural organizations but does not apply to IRC 501(c)(5) labor organizations. See also Rev. Rul. 67–7, 1967–1 C.B. 137.

The refund of excess dues to members of an exempt agricultural organization in the same proportion as the dues are paid does not constitute inurement under IRC 501(c)(5). See Rev. Rul. 81–60, 1981–1 C.B. 335.

Excepted from this prohibition are plans (i) established and maintained by another labor organization which is funded by membership dues, (ii) does not accept employer contributions and (III) was not established or maintained by an employer or government or an agency or entity controlled by a government.

Labor Newspaper—A corporation engaged solely in publishing a newspaper containing only matters concerning union activities is exempt under IRC 501(c)(5). See Rev. Rul. 68–534, 1968–2 CR. 217.

Labor Facility—A corporation operating a "labor temple" containing offices, meeting and recreation halls, and otherwise "providing a home" for several labor unions qualifies for exemption under IRC 501(c)(5). See Portland Co-operative Labor Temple Ass’n. v. Commissioner, 39 B.T.A. 450 (1939) acq. 1939–1 C.B. 28.

Dispatch Hall—An organization, established pursuant to a collective bargaining agreement to operate a dispatch hall to allocate work assignments equitably and efficiently among eligible union members and also to provide facilities to investigate and adjudicate grievances, is exempt under IRC 501(c)(5). See Rev. Rul. 75–473, 1975–2 C.B. 213.

Public Employee Representative—An organization, established by IRC 501(c)(5) labor organizations that represent public employees, that files amicus curiae briefs on behalf of its member organizations or individual employees qualified for exemption under IRC 501(c)(5). See Rev. Rul. 74–596, 1974–2 C.B. 167.

Legal Defense Fund—An organization of law enforcement officers that represented its members or provided funds to pay for legal counsel in cases where the legal action was brought against the member in connection with the performance of official duties qualified for exemption under IRC 501(c)(5). See Rev. Rul. 75–288, 1975–2 C.B. 212.

Union and Employer Stewardship Trust — A trust organized pursuant to a collective bargaining agreement, which hired and compensated a steward who was responsible for investigating complaints filed by employees, assisting in the settlement of disputes, and assuring that employers complied with the terms of the collective bargaining agreement, qualified for exemption under IRC 501(c)(5). See Rev. Rul. 77–5, 1977–1 C.B. 146.

Apprenticeship and Training Committee — A trust that selected apprentices and supervised their training program qualified for exemption under IRC 501(c)(5). The trust also had an affirmative action plan that was approved by the U.S. Department of Labor. See Rev. Rul. 78–42, 1978–1 C.B. 158.

Strike and Lockout Fund — An organization controlled by an IRC 501(c)(5) labor organization that provided financial assistance to members of the union during strikes and lockouts may be exempt as a labor organization described in IRC 501(c)(5). See Rev. Rul. 67–7, 1967–1 C.B. 137. Compare to Rev. Rul. 76–420, 1976–2 C.B. 153, which held that an organization controlled by private individuals that provides weekly income to its members in the event of a lawful strike by the member’s labor union in return for an annual payment by the member does not qualify for exemption as a labor organization under IRC 501(c)(5).

Providing Employment to Members through a Business Activity — An organization established by an IRC 501(c)(5) labor organization that carried on a business activity to furnish employment to its members does not qualify for exemption under IRC 501(c)(5). See Rev. Rul. 69–386, 1969–2 C.B. 123.

Collection of Employment Taxes — An organization created by an association of manufacturers and a labor union to receive employment taxes that the manufacturers were required to deduct from the pay of their union employees and remit them to federal and state revenue departments was not exempt under IRC 501(c)(5). See Rev. Rul. 66–354, 1966–2 C.B. 207.

Savings Plan — A savings plan for union members established pursuant to a collective bargaining agreement does not qualify for exemption under IRC 501(c)(5). See Rev. Rul. 77–46, 1977–1 CR. 147.

Farm Bureaus—State and county farm bureaus organized to promote various cooperative agricultural activities among rural citizens qualify for exemption as IRC 501(c)(5) agricultural organizations. See Rev. Rul. 57–466, 1957–2 C.B. 311.

Exhibitions and Fairs—Organizations formed and operated to conduct exhibitions of live-stock and other farm products can qualify under IRC 501(c)(5). See Rev. Rul. 67–216, 1967–2 C.B. 180.

Soil Testing—An organization established to test soil for members and nonmembers of the farm bureau and educate them in soil treatment qualifies for exemption as an IRC 501(c)(5) agricultural organization. See Rev. Rul. 54–282, 1954–2 C.B. 126.

Breeders Association—An association organized to guard the purity of the breed of Welsh ponies; to promote interest therein; and to establish, maintain, and publish authoritative records, registers, and transfers of ownership of that breed qualifies for exemption as an IRC 501(c)(5) agricultural organization. See Rev. Rul. 55–230, 1955–1 C.B. 71.

Rodeos—An organization formed for the purpose of supporting and maintaining rodeos in a center near ranch and farm activity was an exempt IRC 501(c)(5) agricultural organization. See Campbell v. Big Spring Cowboy Reunion, A Corp., 210 F.2d 143 (5th Cir. 1954).

Farmer’s Wives—An organization of farmers’ wives that directed all of its activities to promoting the farming interests of the members’ husbands was held exempt under IRC 501(c)(5). See Rev. Rul. 74–118, 1974–1 C.B. 134.

Horse Racing—An organization devoted solely to horse racing was denied exemption by the Board of Tax Appeals. The court noted that when the organization ceased to conduct a fair where exhibitions of livestock, farm produce, and farm machinery were held, and devoted itself solely to horse racing, it lost its chief claim to an agricultural classification. See Forest City Livestock and Fair Co. v. Commissioner, B.T.A. Memo, 32, 215 (PH)(1932).

Benefitting Manufacturers—An institute formed by butter and cheese manufacturers to promote scientific research, disseminate data, and encourage and promote educational training in the production and handling of cream and butter does not qualify for exemption as an IRC 501(c)(5) agricultural organization. However, it may qualify as a business league exempt under IRC 501(c)(6). See Rev. Rul. 67–252, 1967–2 C.B. 195.

Collection of Data—An organization of agricultural producers formed to process production data for farmers for use in improving milk production of their own dairy herds, does not qualify as an IRC 501(c)(5) agricultural organization. See Rev. Rul. 70–372, 1970–2 C.B. 118. Compare with Rev. Rul 74–518, 1974–2 C.B. 166.

Dept. of Agriculture Milk Production Program—An organization that operated as an integral and necessary part of a nationwide program to improve milk production by supplying milk production statistical analyses to the U.S. Department of Agriculture as well as milk production records to the individual producers qualified for exemption as an IRC 501(c)(5) agricultural organization. See Rev. Rul. 74–518, 1974–2 C.B. 166. Compare with Rev. Rul. 70–372, 1970–2 C.B. 118, where the organization did not qualify under IRC 501(c)(5) because its activities merely benefited its own members.

Pest Control—A local association of farmers formed to promote more effective agricultural pest control was held exempt under IRC 501(c)(5). The service benefits farmers in general and individual benefits received by the members are only incidental to the overall benefit to local farmers. See Rev. Rul. 81–59, 1981–1 C.B. 334.

Livestock Facility—An organization that owned and operated a livestock facility and leased it to local members of a nonexempt national association of farmers did not qualify for exemption as an IRC 501(c)(5) agricultural organization. See Rev. Rul. 77–153, 1977–1 C.B. 147.

Providing Laborers—An organization of farmers formed to furnish farm laborers for individual farmers does not qualify for exemption as an IRC 501(c)(5) agricultural organization. See Rev. Rul. 72–391, 1972–2 CR. 249.

Livestock Auctions—A nonprofit corporation formed to carry out a livestock improvement program and to sponsor and promote sales of livestock for its members did not qualify as an IRC 501(c)(5) agricultural organization. The organization’s principal activity was marketing livestock at auction as an agent for its members. See Rev. Rul. 66–105, 1966–1 C.B. 145 and compare with Rev. Rul. 76– 399, 1976–2 C.B. 152, below.

Price Negotiations—An organization of growers and producers of a particular agricultural commodity formed principally to negotiate with processors for the price to be paid to members for their crops and not act as a sales agent for its members was held exempt under IRC 501(c)(5). See Rev. Rul. 76–399, supra.