{"data":{"id":"us-dc/d.c.-code-47-1802.01","jurisdiction":"us-dc","citation":"D.C. Code § 47-1802.01","heading":"Exempt organizations — In general.","body":"(a)\nExcept to the extent that the organizations have unrelated business income subject to tax under section 511 of the Internal Revenue Code of 1986 or income subject to tax under section 527 of the Internal Revenue Code of 1986, which income shall be taxed in the same manner and to the same extent as the tax imposed by subchapter VII of this chapter, the following organizations shall be exempt from taxation under this chapter if the organization first obtains a letter from the Mayor stating that it is entitled to the exemption:\n(1)\nA corporation organized under the Act of Congress, which is an instrumentality of the United States and is exempt from federal income taxes under the Act;\n(2)\nCorporations organized for the exclusive purpose of holding title to property, collecting income therefrom, and turning over the entire amount thereof, less expenses, to an organization which itself is exempt under this chapter;\n(3)\nCorporations, and any community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment), or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual, no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation (except as otherwise provided in section 501(h) of the Internal Revenue Code of 1986, and which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for public office;\n(4)\n(A)\nCivic leagues or organizations not organized for profit but operated exclusively for the promotion of social welfare, or local associations of employees, the membership of which is limited to the employees of a designated person or persons in a particular municipality, and the net earnings of which are devoted exclusively to charitable, educational, or recreational purposes;\n(B)\nSubparagraph (A) of this paragraph shall not apply to an entity unless no part of the net earnings of the entity inures to the benefit of any private shareholder or individual;\n(5)\nLabor, agricultural, or horticultural organizations;\n(6)\nBusiness leagues, chambers of commerce, real-estate boards, boards of trade, or professional football leagues (whether or not administering a pension fund for football players), not organized for profit and no part of the net earnings of which inures to the benefit of any private shareholder or individual;\n(7)\n[Reserved];\n(8)\nFraternal beneficiary societies, orders, or associations:\n(A)\nOperating under the lodge system or for the exclusive benefit of the members of a fraternity itself operating under the lodge system; and\n(B)\nProviding for the payment of life, sick, accident, or other benefits to the members of the society, order, or association, or their dependents;\n(9)\nVoluntary employees’ beneficiary associations providing for the payment of life, sick, accident, or other benefits to the members of the association or their dependents or designated beneficiaries, if no part of the net earnings of the association inures (other than through such payments) to the benefit of any private shareholder or individual;\n(10)\nDomestic fraternal societies, orders, or associations, operating under the lodge system:\n(A)\nThe net earnings of which are devoted exclusively to religious, charitable, scientific, literary, educational, and fraternal purposes; and\n(B)\nWhich do not provide for the payment of life, sick, accident, or other benefits;\n(11)\n[Reserved];\n(12)\n[Reserved];\n(13)\n(A)\nCemetery companies owned and operated exclusively for the benefit of their members or which are not operated for profit; and\n(B)\nA corporation chartered solely for the purpose of the disposal of bodies by burial or cremation which is not permitted by its charter to engage in any business not necessarily incident to that purpose, no part of the net earnings of which inures to the benefit of any private shareholder or individual;\n(14)\n(A)\nCredit unions without capital stock organized and operated for mutual purposes and without profit;\n(B)\nCorporations or associations without capital stock organized before September 1, 1957, and operated for mutual purposes and without profit for the purpose of providing reserve funds for, and insurance of shares or deposits in:\n(i)\nDomestic building and loan associations,\n(ii)\nCooperative banks without capital stock organized and operated for mutual purposes and without profit;\n(iii)\nMutual savings banks not having capital stock represented by shares; or\n(iv)\nMutual savings banks described in section 591(b) or the Internal Revenue Code of 1986;\n(C)\nCorporations or associations organized before September 1, 1957, and operated for mutual purposes and without profit for the purpose of providing reserve funds for associations or banks described in sub-subparagraph (i), (ii), or (iii) of subparagraph (B), if at least 85% of the income is attributable to providing such reserve funds and to investments. This subparagraph shall not apply to a corporation or association entitled to exemption under subparagraph (B) of this paragraph;\n(15)\n[Reserved];\n(16)\n[Reserved];\n(17)\n[Reserved];\n(18)\n[Reserved];\n(19)\nA post or organization of past or present members of the Armed Forces of the United States, or an auxiliary unit or society of, or a trust or foundation for, a post or organization:\n(A)\nOrganized in the United States or any of its possessions;\n(B)\nAt least 75% of the members of which are past or present members of the Armed Forces of the United States and substantially all of the other members of which are individuals who are cadets or are spouses or domestic partners, or surviving spouses or domestic partners, of past or present members of the Armed Forces of the United States or of cadets; and\n(C)\nNo part of the net earnings of which inures to the benefit of any private shareholder or individual;\n(20)\n[Reserved];\n(21)\n[Reserved];\n(22)\n[Reserved];\n(23)\n[Reserved];\n(24)\n[Reserved];\n(25)\nAn organization described in section 501(c)(25) of the Internal Revenue Code of 1986;\n(26)\nInsurance companies, companies which guarantee the fidelity of any individual or individuals, such as bonding companies, and companies which furnish abstracts of title or which insure titles to real estate, all of which pay taxes on their gross earnings, premiums, or gross receipts under existing laws of the District.\n\n(b)\nThe exemption under this section shall be effective on the effective date of the exemption determination letter issued for the organization by the Internal Revenue Service.","path":["Title 47. Taxation, Licensing, Permits, Assessments, and Fees. [Enacted title]","Chapter 18. Income and Franchise Taxes.","Subchapter II. Exempt Organizations."],"source_url":"https://code.dccouncil.gov/us/dc/council/code/sections/47-1802.01","current_through":"2026-08-20 (D.C. Law 26-175)","vintage":"","retrieved_at":"2026-08-29T05:44:07Z","sha256":"0cea1a091189b8e22bf7f2196f9dc1f08e98103bdccd129a254d6ef1b5f3fead","source_id":"us-dc","stale":false,"prev":"us-dc/d.c.-code-47-1801.05","next":"us-dc/d.c.-code-47-1802.02"},"notice":"GroundRules: Original legal text. Not legal advice."}