How is Inurement different with a 501c6?

Answer 1

I assume your question is asking for a comparison of the insurement prohibition in section 501(c)(6) organizations with that for 501(c)(3) organizaitons. It is not different. It is prohibited for both. Neither organization may use any part of its net earnings to insure to the benefit of any private shareholder or individual. A section 501(c)(3) organization is, generally, a charitable one not organized for profit, and can include schools and sports to a certain extent. A section 501(c)(6) organization would include business leagues, chambers of commerce, real estate boards, boards of trade, and professional football leagues, which are not organized for profit. The principal difference between the two is the contributions to a 501(c)(3) generally are eligible for a charitable donation for the donor. Those to a 50(c)(6) are not eligible for a charitable donation -- although such contributions may be deductible as ordinary and necessary business expenses.