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501(c)6 member organization 990 question

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    501(c)6 member organization 990 question

    A correctly-classified membership organization - let's say it is a state society of CPAs - has member-related expenses for some elected/appointed members to represent the organization nationally, say at national AICPA conferences or as a IRS taxpayer advocate, for example. THESE MEMBERS ARE NOT PAID BY THE 501c6, they are volunteers. The 501(C)6 organization reimburses the members for their travel costs, conference fees, etc. In completing the 990-EZ form, would you put those reimbursements under line 10, Grants and similar amounts, line 11, Benefits paid to or from members, or under other expenses - and list them as travel etc.?
    The instructions appear to take line 11 off the table, as they are only for employee benefits.
    They also appear to take line 10 off the table, as there is no formal grant process in place.
    This leaves other expenses?

    Anyone have a different thought process?

    #2
    I would put those expenses on line 16 as Other Expenses.

    Grants, on line 10, would be the place to put expenditures for specific benefits to 3rd parties in conformity with the exempt organization's function of providing direct financial assistance to those in need if the by-laws permit that.

    Benefits paid to or for members, on line 11, would be for expenses paid directly to members for being members of the association, such as sickness or death benefits that are not dependent on the organization's main function or purpose.

    The proper place to put the expenses you are describing is on line 16, Other Expenses, as they are operating expenses incurred in providing services for the exempt organization's purpose - travel TO and FROM association meetings and lodging expenses - in the normal conduct of the 501(c)(6) function. If material enough, I would also include them on Part III, P. 2 as Program Services.
    Uncle Sam, CPA, EA. ARA, NTPI Fellow

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