GSA Disclaimer

GSA is a not-for-profit member organization with tax-exempt status under Section 501(c)(6) of the Internal Revenue Code. Consistent with that Section's requirement that a qualified organization operate for the “common business purpose” of a particular industry or line of commerce, all of GSA's public events (e.g., its “forums”) are open to members and non-members alike, without restriction based on membership status or line of business. The activities of GSA cannot be primarily directed to the performance of particular services for individual persons as defined below.

Section 501(c)(6) of the Internal Revenue Code provides for the exemption of business leagues which are not organized for profit and no part of the net earnings of which inures to the benefit of any private shareholder or individual.

A business league is an association of persons having some common business interest, the purpose of which is to promote such common interest and not to engage in a regular business of a kind ordinarily carried on for profit. Trade associations and professional associations are business leagues. To be exempt, a business league's activities must be devoted to improving business conditions of one or more lines of business as distinguished from performing particular services for individual persons. No part of a business league's net earnings may inure to the benefit of any private shareholder or individual and it may not be organized for profit to engage in an activity ordinarily carried on for profit (even if the business is operated on a cooperative basis or produces only enough income to be self-sustaining). The term line of business generally refers either to an entire industry or to all components of an industry within a geographic area. It does not include a group composed of businesses that market a particular brand within an industry.

To meet the requirements of IRC 501(c)(6) and Reg. 1.501(c)(6)-1, an organization must possess the following characteristics:

1. It must be an association of persons having some common business interest and its purpose must be to promote this common business interest;
2. It must be a membership organization and have a meaningful extent of membership support;
3. It must not be organized for profit;
4. No part of its net earnings may inure to the benefit of any private shareholder or individual;
5. 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 (The term “persons,” includes legal entities such as trusts and corporations. When dealing with “particular services,” that Reg. 1.501(c)(6)-1 speaks in terms of services to “persons,” which refers not only to members, but also to individuals and entities who are not members.);
6. Its primary activity does not consist of performing particular services for individual persons; and
7. 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.