[Code of Federal Regulations]
[Title 26, Volume 7]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.501(c)(6)-1]

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                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.501(c)(6)-1  Business leagues, chambers of commerce, real estate 
boards, and boards of trade.

    A business league is an association of persons having some common 
business interest, the purpose of which is to promote such common 
interest and not to engage in a regular business of a kind ordinarily 
carried on for profit. It is an organization of the same general class 
as a chamber of commerce or board of trade. Thus, its activities should 
be directed to the improvement of business conditions of one or more 
lines of business as distinguished from the performance of particular 
services for individual persons. An organization whose purpose is to 
engage in a regular business of a kind ordinarily carried on for profit, 
even though the business is conducted on a cooperative basis or produces 
only sufficient income to be self-sustaining, is not a business league. 
An association engaged in furnishing information to prospective 
investors, to enable them to make sound investments, is not a business 
league, since its activities do not further any common business 
interest, even though all of its income is devoted to the purpose 
stated. A stock or commodity exchange is not a business league, a 
chamber of commerce, or a board of trade within the meaning of section 
501(c)(6) and is not exempt from tax. Organizations otherwise exempt 
from tax under this section are taxable upon their unrelated business 
taxable income. See part II (section 511 and following), subchapter F, 
chapter 1 of the Code, and the regulations thereunder.

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