501(c)(12): Insurance coverage associations
Section 501(c)(12) delivers the exemption for organizations like benevolent life insurance coverage associations, mutual ditch or irrigation providers, and mutual or cooperative electric, water, or telephone providers. Eighty-five percent or extra on the revenue that these organizations produce consists of revenue from members. Popular to all of those entities is definitely the conduct of an activity of a mutually effective nature.
Section 501(c)(12) delivers the exemption for organizations like benevolent life insurance coverage associations, mutual ditch or irrigation providers, and mutual or cooperative electric, water, or telephone providers. Eighty-five percent or extra on the revenue that these organizations produce consists of revenue from members. Popular to all of those entities is definitely the conduct of an activity of a mutually effective nature.
A benevolent life insurance coverage association is one particular that is operated to supply life insurance coverage coverage to members at expense. Having said that, the hitch is the fact that they’re confined to a specific community, spot, or district. Mutual ditch or irrigation providers are these that operate irrigation systems for the use and benefit of their members.
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