501(c)(6) organizations are defined as “Business leagues, chambers of commerce, real-estate boards, boards of trade, or professional football leagues (whether or not administering a pension fund for football players), not organized for profit and no part of the net earnings of which inures to the benefit of any private shareholder or individual.”  (Internal Revenue Code Section (“IRC”) 501(c)(6)).  More specifically, a 501(c)(6) organization must meet certain basic tests in order to be exempt under 501(c)(6):

A.     It must be an association of persons having some common business interest, and its purpose must be to promote this common business interest.

B.     It must not be organized for profit.

C.     It must be a membership organization and have a meaningful extent of membership support.

D.     No part of its net earnings may inure to the benefit of any private shareholder or individual.

E.      Its activities must 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.

F.      Its purpose must not be to engage in a regular business of a kind ordinarily carried on for profit, even if the business is operated on a cooperative basis or produces only sufficient income to be self-sustaining.