Life Cycle of an Agricultural or Horticultural Organization - Jeopardizing Exemption |
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An agricultural or horticultural organization will jeopardize its exemption under Code section 501(c)(5) if it ceases to have as its purposes bettering the conditions of persons engaged in agriculture or horticulture; improving the products; and developing a higher degree of efficiency in their occupations. In addition, an organization's net earnings may not inure to the benefit of its members. These organizations may conduct political campaign and lobbying activities furthering their exempt purposes, but may have to pay a proxy tax if they use member dues for this purpose.
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Posted: March 7, 2007
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Page Last Reviewed or Updated: April 21, 2008