skip navigation

Search Help
Navigation Help


Main Topics
A B C D E F G H I
J K L M N O P Q R
S T U V W X Y Z #


FAQs
Forms
Publications
Tax Topics


Comments
About Tax Map

previous page Previous Page: Publication 557 - Tax-Exempt Status for Your Organization - Educational Organizations and Private Schools
next page Next Page: Publication 557 - Tax-Exempt Status for Your Organization - Other Section 501(c)(3) Organizations
 Use previous pagenext page to find additional occurrences of topic items.Index for this Publication
taxmap/pubs/p557-020.htm#TXMP552782c1

Organizations Providing Insurance(p25)


rule
spacer

Organizations Providing Insurance

An organization described in section 501(c)(3) or 501(c)(4) may be exempt from tax only if no substantial part of its activities consists of providing commercial-type insurance.
However, this rule does not apply to state-sponsored organizations described in sections 501(c)(26) or 501(c)(27), which are discussed in chapter 4, or to charitable risk pools, discussed next.
taxmap/pubs/p557-020.htm#TXMP5fcfd606

Charitable Risk Pools(p25)


rule
spacer

Charitable Risk Pools

A charitable risk pool is treated as organized and operated exclusively for charitable purposes if it:
  1. Is organized and operated only to pool insurable risks of its members (not including risks related to medical malpractice) and to provide information to its members about loss control and risk management,
  2. Consists only of members that are section 501(c)(3) organizations exempt from tax under section 501(a),
  3. Is organized under state law authorizing this type of risk pooling,
  4. Is exempt from state income tax (or will be after qualifying as a section 501(c)(3) organization),
  5. Has obtained at least $1,000,000 in startup capital from nonmember charitable organizations,
  6. Is controlled by a board of directors elected by its members, and
  7. Is organized under documents requiring that:
    1. Each member be a section 501(c)(3) organization exempt from tax under section 501(a),
    2. Each member that receives a final determination that it no longer qualifies under section 501(c)(3) notify the pool immediately, and
    3. Each insurance policy issued by the pool provide that it will not cover events occurring after a final determination described in (b).
previous pagePrevious Page: Publication 557 - Tax-Exempt Status for Your Organization - Educational Organizations and Private Schools
next pageNext Page: Publication 557 - Tax-Exempt Status for Your Organization - Other Section 501(c)(3) Organizations
 Use previous pagenext page to find additional occurrences of topic items.Index for this Publication