Section 501(c)(6) is the part of the Internal Revenue Code that covers business leagues, chambers of commerce, and boards of trade. It is the closest thing to a formal federal status for a chamber — but it is a tax classification, not a license, and it does not make donations to your chamber tax-deductible as charitable contributions.
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The IRS describes a business league as "an association of persons having some common business interest, the purpose of which is to promote such common interest and not to engage in a regular business of a kind ordinarily carried on for profit", and requires that "no part of the net earnings" benefit any private shareholder or individual.
The IRS states directly that chambers of commerce and boards of trade "are organizations of the same general type as business leagues" and that they "direct their efforts at promoting the common economic interests of all commercial enterprises in a trade or community".
An organization seeking IRS recognition under section 501(a) generally applies on Form 1024. Form 1024 must be submitted electronically through Pay.gov, and the law requires payment of a user fee for a determination letter request. Current fee amounts are published annually by the IRS.
The Form 1024 instructions note that certain organizations are not required to apply for tax-exempt status, but may wish to file Form 1024 in order to receive a determination letter. Whether your chamber is in that category is a question for a tax professional.
A determination letter is the document members, banks, sponsors, and grant-makers ask for. Organizations that could self-declare often apply anyway simply because the letter removes the argument.
It is not a charitable status. Contributions to a 501(c)(6) are not deductible by the donor as charitable contributions, though member dues may be deductible as an ordinary business expense subject to limits — including limits relating to lobbying activity. This is exactly the point where chambers most often give members incorrect guidance; the treatment should be confirmed with a tax professional and stated carefully in your dues materials.
Questions
Section 501(c)(6) covers business leagues, chambers of commerce, real estate boards, and boards of trade. The IRS defines a business league as an association of persons with a common business interest, organized to promote that common interest rather than to carry on a regular for-profit business, with no part of its net earnings benefiting a private shareholder or individual.
Organizations applying for recognition under section 501(a) — which includes 501(c)(6) business leagues — generally use Form 1024. The IRS requires Form 1024 to be submitted electronically through Pay.gov, together with the applicable user fee.
Not as charitable contributions. A 501(c)(6) is not a charity. Member dues may be deductible as a business expense subject to limits, including limits relating to lobbying. Members should confirm their own treatment with their tax adviser.
The IRS charges a user fee for a determination letter request. The amount is set out in an annually updated Revenue Procedure rather than being fixed, so check the current IRS user fee page before budgeting.
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Sources
Every regulatory statement in this section is drawn from a primary source. Last verified 2026-08-14.
This is general information, not legal or tax advice. Requirements vary by state and by organization, and federal forms, fees, and thresholds change. Confirm your own position against the primary sources above and with a qualified attorney or tax professional before acting. Chamber.Support is an independent software provider and is not affiliated with the Internal Revenue Service or the U.S. Chamber of Commerce.
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