Cooperative Service Organizations of Operating Educational Organizations (§ 501(f))

Definition

A section 501(f) organization is a cooperative investment pool whose members are schools, colleges, and universities (or their state-affiliated support organizations) that are tax-exempt or whose income is excluded as governmental; it collectively invests the members' contributed money in stocks and securities and pays all of the income, less expenses, back to them. Congress treats it as an organization operated exclusively for charitable purposes.^[1]

Federal law

1. Public Law 93-310 (Act of June 8, 1974), Pub. L. 93-310, § 3, 88 Stat. 235. Added § 501(f) to the Internal Revenue Code of 1954, treating qualifying educational investment cooperatives as charitable organizations, for taxable years ending after December 31, 1973. Official text: govinfo.gov, U.S. Government Publishing Office.