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Advisory opinion regarding whether the Louisiana Bankers Association PAC may give a contribution to a 501(c)(6) organization. |
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Joe Gendron, Director of Government relations for Louisiana Bankers Association asks the question regarding whether the PAC may give a contribution to a 501C(6) organization.
IRC 501(c)(6) provides for exemption of business leagues, chambers of commerce, real estate boards, boards of trade, and professional football leagues (whether or not administering a pension fund for football players), 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.
501(c)(6)-l defines a business league as an association of persons having a common business interest, whose purpose is to promote the common business interest and not to engage in a regular business of a kind ordinarily carried on for profit. Its activities are directed to the improvement of business conditions of one or more lines of business rather than the performance of particular services for individual persons.
Chambers of commerce and boards of trade direct their efforts at promoting the common economic interests of all the commercial enterprises in a given trade or community.
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R.S. 18:1505.2I provides that a political committee may use its campaign funds towards the administrative costs or operating expenses of the political committee. Excess campaign funds may be used for a future campaign; returned to contributors on a pro-rata basis; given as charitable contributions as provided in 26 USC 170(c) or given to a charitable organization as defined by 501(c)(3); or in support of or opposition to a proposition, political party, or candidate.
26 USC 501(c)(3) provides a tax exemption for non-profit organizations that are organized for and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment), or for the prevention of cruelty to children or animals, no part of the net earnings of which inure to the benefit of any private shareholder or individual, no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation (except as otherwise provided in subsection (h)), and which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for public office.
26 USC 170 (c) defines charitable organizations as non-profit organizations that are organized for and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment), or for the prevention of cruelty to children or animals, no part of the net earnings of which inure to the benefit of any private shareholder or individual, no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation, and which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for public office.
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Adopt the proposed advisory opinion.
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| Assigned Attorney: |
Aneatra Boykin |
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