Tax Planning and Compliance for Tax-Exempt Organizations, 6th Edition

CHAPTER 5Educational, Scientific, and Literary Purposes and Prevention of Cruelty to Children and Animals

• 5.1 Educational Purposes
  • (a) Schools
  • (b) Race Discrimination
  • (c) Day Care Centers
  • (d) Cooperative Educational Service Organizations
  • (e) Informal Education
  • (f) Fraternity/Sorority Educational Foundations
  • (g) Performing Arts
  • (h) Museums, Libraries, and Zoos
  • (i) Sale of Art Objects
  • (j) Publishing: Print and Electronic
  • (k) Controversial Materials
  • (l) Electronic Communication
• 5.2 Literary Purposes
• 5.3 Scientific Purposes
  • (a) Research in the Public Interest
  • (b) Commercialization of Research Results
• 5.4 Testing for Public Safety
• 5.5 Fostering National or International Amateur Sports Competition (But Only If No Part of Its Activities Involves the Provision of Athletic Facilities or Equipment)
• 5.6 Prevention of Cruelty to Children or Animals

5.1 Educational Purposes

Educational purposes include “instruction or training of individuals to improve or develop their capabilities; or instruction of the public on subjects useful to the individual and beneficial to the community.”¹ This definition of “educational” encompasses professional or occupational training regarding business capabilities.² The regulation gives the following four examples of educational organizations:

1. Primary or secondary schools, colleges, or professional or trade schools.
2. Public discussion groups, forums, panels, lectures, or similar programs.
3. Organizations that present courses of instruction by means ...