The following examples illustrate activities not furthering the exempt purposes of a labor organization under Code section 501(c)(5). If non-qualifying activities are an organization's principal activity, the organization may lose its exempt status. Providing employment to members through a business activity. An organization, created by an association of manufacturers and a labor union, that collected and paid to government agencies employment taxes. A savings plan established pursuant to a collective bargaining agreement. A strike fund controlled by private individuals who controlled the organization that paid benefits to workers. An organization whose principal activity is managing funds associated with savings or investment plans or programs, including pension or other retirement plans. Return to Life Cycle of a Labor Organization
