### Question
How is the term membership organization defined?


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

> 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**

