### Question
How is the "exempt function income" defined?


### Answer
The term **exempt function income** is defined in *26 U.S.C. § 527* as follows -

> any amount received as—



(A) a contribution of money or other property,



(B) membership dues, a membership fee or assessment from a member of the political organization,



(C) proceeds from a political fundraising or entertainment event, or proceeds from the sale of political campaign materials, which are not received in the ordinary course of any trade or business, or



(D) proceeds from the conducting of any bingo game (as defined in section 513(f)(2)),


  

to the extent such amount is segregated for use only for the exempt function of the political organization

#### Citation:
  - *26 U.S.C. § 527*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter F-Exempt Organizations > PART VI-POLITICAL ORGANIZATIONS**

