### Question
Can you define what membership organization means?


### Answer
**Membership organization** is defined as the following in *26 U.S.C. § 456*:

> a corporation, association, federation, or other organization—



(A) organized without capital stock of any kind, and



(B) no part of the net earnings of which is distributable to any member

#### Citation:
  - *26 U.S.C. § 456*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter E-Accounting Periods and Methods of Accounting > PART II-METHODS OF ACCOUNTING > Subpart B-Taxable Year for Which Items of Gross Income Included**

