Government Participation in Chambers of Commerce
A recent opinion piece published in the Chapel Hill News questioned whether government agencies should be members of their local chambers of commerce. Specifically, the piece claimed that a membership relationship between a government entities and a chamber may be violating IRS regulations, thus jeopardizing their respective tax-exempt status.
Recognizing the possible implications of such a claim, ACCE contacted the association law experts at Venable LLP to investigate. In short, the attorneys found that there are absolutely no federal tax law prohibitions on the membership of state and municipal organizations or their agencies in chambers of commerce or other business leagues.