Religious and Apostolic Organizations (§ 501(d))

Definition

A section 501(d) organization is a religious or apostolic association or corporation, such as a communal religious community, whose members share a common or community treasury and which may run a business for their common benefit. The organization itself is exempt from federal income tax, but each member must include a pro rata share of its taxable income in their own gross income, treated as a dividend, whether or not it is distributed.^[1]

Federal law

1. Internal Revenue Code of 1954, Pub. L. 83-591, ch. 736, § 501(d), 68A Stat. 165. Exempts religious or apostolic associations or corporations with a common or community treasury, conditioned on members reporting their pro rata shares of taxable income as dividends (26 U.S.C. § 501(d)). Official text: govinfo.gov, U.S. Government Publishing Office.