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TITLE 26-INTERNAL REVENUE CODE 1969-Pub. L. 91-172, title I, § 101(j)(61), Dec. 30, 1969, 83 Stat. 532, struck out Item 504. PART REFERRED TO IN OTHER SECTIONS This part is referred to in section 1492 of this title. § 501. Exemption from tax on corporations, certain trusts, etc. (a) Exemption from taxation An organization described in subsection (c) or (d) or section 401(a) shall be exempt from tax- ation under this subtitle unless such exemption is denied under section 502 or 503. (b) Tax on unrelated business income and certain other activities An organization exempt from tax:ation under subsection (a) shall be subject to tax to the extent provided in parts II, III, and VI of this subchapter, but (notwithstanding parts II, III, and VI of this subchapter) shall be considered an organization exempt from income taxes for the purpose of any law which refers to organi- zations exempt from income taxes. () List of exempt organizations The following organizations are referred to in subsection (a): (1) Corporations organized under Act of Congress, if such corporations are instrumen- talities of the United States and if, under such Act, as amended and supplemented, such corporations are exempt from Federal income taxes. (2) Corporations organized for the exclusive purpose of holding title to property, collect- ing income therefrom, and turning over the entire amount thereof, less expenses, to an organization which itself is exempt under this section. (3) Corporations, and any community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educa- tional purposes, or to foster national or inter- national amateur sports competition (but only if no part of its activities involve the pro- vision of athletic facilities or equipment), or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private share- holder or individual, no substantial part of the activities of which is carrying on propa- ganda, or otherwise attempting, to influence legislation (except as otherwise provided in subsection (h)), and which does not partici- pate in, or intervene in (including the pub- lishing or distributing of statements), any po- litical campaign on behalf of any candidate for public office. (4) Civic leagues or organizations not orga- nized for profit but operated exclusively for the promotion of social welfare, or local asso- ciations of employees, the membership of which is limited to the employees of a desig- nated person or persons in a particular mu- nicipality, and the net earnings of which are devoted exclusively to charitable, educational, or recreational purposes. (5) Labor, agricultural, or horticultural or- ganizations. (6) Business leagues, chambers of com- merce, 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 individ- ual. (7) Clubs organized for pleasure, recreation, and other nonprofitable purposes, substan- tially all of the activities of which are for such purposes and no part of the net earnings of which inures to the benefit of any private shareholder, (8) Fraternal beneficiary societies, orders, or associations- (A) operating under the lodge system or for the exclusive benefit of the members of a fraternity itself operating under the lodge system, and (B) providing for the payment of life, sick, accident, or other benefits to the members of such society, order, or association or their dependents. (9) Voluntary employees' beneficiary associ- ations providing for the payment of life, sick, accident, or other benefits to the members of such association or their dependents or desig- nated beneficiaries, if no part of the net earn- ings of such association inures (other than through such payments) to the benefit of any private shareholder or individual. (10) Domestic fraternal societies, orders, or associations, operating under the lodge system- (A) the net earnings of which are devoted exclusively to religious, charitable, scientif- ic, literary, educational, and fraternal pur- poses, and (B) which do not provide for the payment of life, sick, accident, or other benefits. (11) Teachers' retirement fund associations of a purely local character, if- (A) no part of their net earnings inures (other than through payment of retirement benefits) to the benefit of any private shar- eholder or individual, and (B) the income consists solely of amounts received from public taxation, amounts re- ceived from assessments on the teaching salaries of members, and income in respect of investments. (12) Benevolent life insurance associations of a purely local character, mutual ditch or ir- rigation companies, mutual or cooperative telephone companies, or like organizations; but only if 85 percent or more of the income consists of amounts collected from members for the sole purpose of meeting losses and ex- penses. (13) Cemetery companies owned and operat- ed exclusively for the benefit of their mem- bers or which are not operated for profit; and any corporation chartered solely for the pur- pose of the disposal of bodies by burial or cre- mation which is not permitted by its charter to engage in any business not necessarily inci- dent to that purpose and no part of the net earnings of which inures to the benefit of any private shareholder or individual. (14)(A) Credit unions without capital stock organized and operated for mutual purposes and without profit. Page 375