Dues received from non-members of agricultural or horticultural organizations or business leagues are gross income from an unrelated trade or business if the membership category exists for the principal purpose of producing unrelated business income. For example, if an organization creates an associate member category solely to allow associate members to purchase insurance through the organization, the associate member dues may be unrelated business income and would be excluded from the amount used to calculate the organization's membership support. Excepted from this rule are associate member dues that are not more than an inflation-adjusted annual limit ($158 in 2014). If dues exceed the limit, the entire dues payment is income from an unrelated business unless the associate member category was formed or availed of for the principal purpose of furthering the organization's exempt purposes. Additional information Revenue Procedure 95-21 PDF Return to Life Cycle of an Agricultural or Horticultural Organization Return to Life Cycle of a Business League (Trade Association)
