Cooperative Service Organizations of Operating Educational Organizations Law and Legal Definition

According to 26 USCS § 501 (Title 26, Internal Revenue Code; Subtitle A, Income Taxes; Chapter 1, Normal Taxes and surtaxes; Subchapter F. Exempt Organizations; Part I, General Rule), for purposes of this title, “if an organization is--

(1) organized and operated solely to hold, commingle, and collectively invest and reinvest (including arranging for and supervising the performance by independent contractors of investment services related thereto) in stocks and securities, the moneys contributed thereto by each of the members of such organization, and to collect income therefrom and turn over the entire amount thereof, less expenses, to such members,

(2) organized and controlled by one or more such members, and

(3) comprised solely of members that are organizations described in clause (ii) or (iv) of section 170(b)(1)(A) [26 USCS § 170(b)(1)(A)]--

(A) which are exempt from taxation under subsection (a), or

(B) the income of which is excluded from taxation under section 115(a) [26 USCS § 115(a)],

then such organization shall be treated as an organization organized and operated exclusively for charitable purposes.”