Читать книгу The Law of Tax-Exempt Organizations, 2021 Cumulative Supplement - Bruce Hopkins R., Bruce R. Hopkins, David Middlebrook - Страница 23

p. 177. Insert as first complete paragraph:

Although accreditation of educational institutions is a charitable activity, a similar function with respect to individuals—certification—is not. The IRS is of the view that the primary purpose of a program of certification of individuals is to benefit the profession or other field involved and the individuals in their private capacity, with any charitable, educational, or similar “public” benefit (e.g., consumer education and protection) secondary. Thus, an organization that was recognized by the IRS as a charitable and educational entity, then merged with another organization and became primarily a certification entity, had its exemption revoked.^321.1 Likewise, an organization that was recognized as a charitable entity, then implemented a program of certification of individuals and businesses in the travel industry, was deprived of its exemption because the program made “them more attractive to eco‐friendly consumers.”^131.2 The IRS ruled that an organization, primarily engaged in the certification of its members' conduct of an organic farming method, could not qualify as an exempt charitable entity because the certification service provided a “substantial benefit” to its members and enables them to “gain[] a benefit over other similarly situated commercial entities.”^131.3 If a certification program is not a charitable organization's primary function, it may be classified as an unrelated business.^321.4 Certification programs are, however, suitable exempt activities for business leagues.^321.5