Specific Rules That Regulate 501©(6) Organizations Such As Chambers Of Commerce, And Professional Associations

Specific Rules That Regulate 501©(6) Organizations Such As Chambers Of Commerce, And Professional Associations

APRIL30. 2024

501©(6) organizations, which include business leagues, chambers of commerce, and professional associations, have specific rules regarding public disclosure and availability of certain documents.

Here are the key points:

1. Annual Returns and Exemption Applications: Tax-exempt organizations must make their annual returns (such as Form 990) and exemption applications filed with the IRS available for public inspection and copying upon request. The IRS also provides access to these documents1.

2. Public Disclosure Requirements:

   • • What Organizations Are Covered: The law applies to tax-exempt organizations. These are entities that qualify for tax-exempt status under section 501© of the Internal Revenue Code.
     • Documents for Public Inspection: Exempt organizations must make available for public inspection and copying:
       • Annual returns (e.g., Form 990, 990-EZ, or 990-PF)
       • Exemption applications (Form 1023 or 1024)
     • Reasonable Charge for Copies: Organizations may charge a reasonable fee for providing copies of these documents.
     • Form 990 Obligations: Specific disclosure requirements exist for Form 990.
     • Private Foundations: Different rules apply to private foundations.
     • Contributor Names and Addresses: Generally, exempt organizations are not required to disclose the names and addresses of their contributors.
     • Penalties for Non-Compliance: Failure to comply with disclosure requirements may result in penalties.
     • Complaints: If a requester’s document copy request is not fulfilled, they can complain to the appropriate
     • • Donor Disclosures: Section 501©(4) and 501©(6) organizations are not required to disclose donor identities on their annual Form 990 filings2.
     • Access to IRS Filings:
       • Individuals can obtain copies of an organization’s exemption application or annual information return (Form 990) from the IRS.
       • Personal identifying information provided on exempt organization returns is subject to public disclosure.
       • The e-Postcard (Form 990-N) information is also accessible to the public13.

   Remember that these rules aim to promote transparency and accountability for tax-exempt organizations. If you need specific information, you can request it directly from the organization or explore the IRS resources.