IRS denies charity status to a retriever training club

Plain-English summary

A retriever club sought section 501(c)(3) status as an educational
organization. It offered public classes on human and animal first aid,
conservation, and search and rescue, but it also trained hunting dogs and held
hunt tests under the rules of national dog organizations. The IRS concluded
that training animals does not qualify as education under section 501(c)(3)
when the animals, rather than their owners, are the primary objects of the
training and evaluation. It found that the club's animal training, hunt tests,
and member recreation were a substantial nonexempt purpose, so the educational
activities did not preserve exemption.

Ruling snapshot

• Question: Does a retriever club qualify under section 501(c)(3) when it offers some public education but also substantially trains and tests hunting dogs for member recreation?
• Outcome: Denied
• Key authorities: IRC § 501(c)(3); Treas. Reg. § 1.501(c)(3)-1(a)(1), (c)(1), and (d)(3)(i); Rev. Rul. 71-421

Full text (IRS public release)

Department of the Treasury
Internal Revenue Service
Tax Exempt and Government Entities

Date:
04/29/2026

Employer ID number:
[redacted]

Form you must file:
[redacted]

Tax years:
[redacted]

Person to contact:
[redacted]

Release Number: 202630014
Release Date: 7/24/26
UIL Code: 501.03-30

Dear [redacted]:

This letter is our final determination that you don't qualify for exemption from federal income tax under Internal
Revenue Code (IRC) Section 501(a) as an organization described in IRC Section 501(c)(3). Recently, we sent
you a proposed adverse determination in response to your application. The proposed adverse determination
explained the facts, law, and basis for our conclusion, and it gave you 30 days to file a protest. Because we
didn't receive a protest within the required 30 days, the proposed determination is now final.

Because you don't qualify as a tax-exempt organization under IRC Section 501(c)(3), donors generally can't
deduct contributions to you under IRC Section 170.

We may notify the appropriate state officials of our determination, as required by IRC Section 6104(c), by
sending them a copy of this final letter along with the proposed determination letter.

You must file the federal income tax forms for the tax years shown above within 30 days from the date of this
letter unless you request an extension of time to file. For further instructions, forms, and information, visit
www.irs.gov.

We'll make this final adverse determination letter and the proposed adverse determination letter available for
public inspection after deleting certain identifying information, as required by IRC Section 6110. Read the
enclosed Letter 437, Notice of Intention to Disclose - Rulings, and review the two attached letters that show our
proposed deletions. If you disagree with our proposed deletions, follow the instructions in the Letter 437 on how
to notify us. If you agree with our deletions, you don't need to take any further action.

If you have questions about this letter, you can call the contact person shown above. If you have questions
about your federal income tax status and responsibilities, call our customer service number at 800-829-1040
(TTY 800-829-4933 for deaf or hard of hearing) or customer service for businesses at 800-829-4933.

Letter 4038 (Rev. 11-2021)
Catalog Number 47632S

Sincerely,

Stephen A. Martin
Director, Exempt Organizations
Rulings and Agreements

Enclosures:
Letter 437
Redacted Letter 4034
Redacted Letter 4038

Letter 4038 (Rev. 11-2021)
Catalog Number 47632S

Department of the Treasury
Internal Revenue Service

Date:
03/11/2026

Employer ID number:
[redacted]

Person to contact:
Name: [redacted]
ID number: [redacted]
Telephone: [redacted]
Fax: [redacted]

Legend:
B = Date
C = State
E = Organization
F = Organization
G = Organization
h percent = Number
j percent = Number

UIL:
501.03-30

Dear [redacted]:

We considered your application for recognition of exemption from federal income tax under Internal Revenue
Code (IRC) Section 501(a). We determined that you don’t qualify for exemption under IRC Section 501(c)(3).
This letter explains the reasons for our conclusion. Please keep it for your records.

Issues

Do you qualify for exemption under IRC Section 501(c)(3)? No, for the reasons stated below.

Facts

You submitted Form 1023-EZ, Application for Recognition of Exemption under Section 501(c)(3) of the
Internal Revenue Code.

You attest that you were incorporated on date B, in the state of C. You attest that you have the necessary
organizing document, that your organizing document limits your purposes to one or more exempt purposes
within the meaning of Section 501(c)(3), that your organizing document does not expressly empower you to
engage in activities, other than an insubstantial part, that are not in furtherance of one or more exempt purposes,
and that your organizing document contains the dissolution provision required under Section 501(c)(3).

Letter 4034 (Rev. 01-2021)
Catalog Number 47628K

2

You attest that you are organized and operated exclusively to further educational purposes. You attest that you
have not conducted and will not conduct prohibited activities under Section 501(c)(3). Specifically, you attest
you will:

• Refrain from supporting or opposing candidates in political campaigns in any way
• Ensure that your net earnings do not inure in whole or in part to the benefit of private shareholders or
individuals
• Not further non-exempt purposes (such as purposes that benefit private interests) more than
insubstantially
• Not be organized or operated for the primary purpose of conducting a trade or business that is not related
to your exempt purpose(s)
• Not devote more than an insubstantial part of your activities attempting to influence legislation or, if you
made a Section 501(h) election, not normally make expenditures in excess of expenditure limitations
outlined in Section 501(h)
• Not provide commercial-type insurance as a substantial part of your activities

You were formed to advance educational services for retriever animal training and provide safety courses for
individuals. Your primary purpose is to be representative of the retriever community in the Northern C area.
You promote and facilitate retriever training for novices to advanced gun dog handlers and owners. You were
established with common goals for individuals who compete in E hunt and field and F events or those who want
to bring out the natural abilities of hunting retrievers to promote amateur sports. Your Constitution and Bylaws
state that the objectives of your club are:
• To further the advancement of all retriever field trial and hunting test breeds
• To protect and advance the interests of retriever field trials and hunting tests and to encourage
sportsmanlike conduct at such events.
• To conduct sanctioned and licensed retriever field trials and hunting tests under the rules and regulations
of the E and F.
• To disseminate knowledge, conduct educational and training events and promote the training of
retrievers and encourage the training of judges.
• To conserve game birds by the use of a trained retriever.

Your activities include the following educational programs: first aid and cpr certification, first aid for animals,
land habitat and wildlife conservation classes, and introduction to search and rescue. Classes are conducted year
round and are open to the public. You also have two hunt tests a year. The tests have entry fees that cover the E
fees. Hunts are open to all ages and youth can earn scholarships for college through the E for participating. H
percent of your time and resources go to education and j percent of your time and resources go to social events.
Your classes and events are on land donated by the property owners.

Any breeder, owner and/or fancier of hunting dogs is eligible for membership in your organization.
Membership is open to everyone who is in good standing with E, F and G and who subscribes to the purposes of
the club. Members are required to be an integral working part of the club and not just show up to run their dogs
at events. Members could be on a Hunt Test Committee, set up at fun events, or educate or assist in retriever
training, judging, or throwing birds from a blind.

Letter 4034 (Rev. 01-2021)
Catalog Number 47628K

3

Law

Internal Revenue Code Section 501(c)(3) provides for the recognition of exemption of organizations that are
organized and operated exclusively for charitable, educational, or other enumerated purposes as specified in the
statute. No part of the net earnings may inure to the benefit of any private shareholder or individual.

Treasury Regulation Section 1.501(c)(3)-1(a)(1) provides that in order to qualify for exemption, an organization
must be both organized and operated exclusively for one or more exempt purposes. If an organization fails to
meet either of the above tests, the organization will not qualify for exemption.

Treas. Reg. Section 1.501(c)(3)-1(c)(1) states that an organization will be regarded as “operated exclusively”
for one or more exempt purposes only if it engages primarily in activities which accomplish one or more of
such exempt purposes specified in section 501(c)(3) of the Code. An organization will not be so regarded if
more than an insubstantial part of its activities is not in furtherance of an exempt purpose.

Treas. Reg. Section 1.501(c)(3)-1 (d)(3)(i) provides that the term “educational,” as used in IRC Section
501(c)(3), relates to the instruction or training of the individual for the purpose of improving or developing his
capabilities or the instruction of the public on subjects useful to the individual and beneficial to the community.

Revenue Ruling 71-421, 1971-2 C.B. 229, held that a dog club exempt under IRC Section 501(c)(7) that was
formed to promote the ownership and training of purebred dogs and conduct obedience training classes could
not be reclassified as an educational organization exempt under IRC Section 501(c)(3) because the
organization's training program for dogs is not within the meaning of educational as defined in the
regulations.

In Better Business Bureau of Washington D.C., Inc. v. United States, 326 U.S. 279 (1945), the Supreme Court
held that the presence of a single non-exempt purpose, if substantial in nature, will destroy the exemption
regardless of the number or importance of truly exempt purposes.

In Ann Arbor Dog Training Club, Inc. v. Commissioner, 74 T.C. 207 (1980), the court held that the training of
animals does not come within the meaning of "educational" as set forth in IRC Section 501(c)(3). The
organization held dog obedience training classes, awarded the dogs a degree after completion of the course and
awarded them prizes at show events. While the owners of the dogs received some instruction as to the training
of dogs, it was the dog that was the primary object of the training and evaluation.

Application of law

Section 501(c)(3) sets forth two main tests for qualification for exempt status. As stated in Treas. Reg. Section
1.501(c)(3)-1(a)(1), an organization must be both organized and operated exclusively for purposes described in
IRC Section 501(c)(3). You do not meet the operational test under IRC Section 501(c)(3) because you are not
operating exclusively for educational purposes. You are similar to the organizations in Rev. Rul. 71-421 and
Ann Arbor Dog Training Club, Inc. v. Commissioner. While some of your activities such as human first aid are
educational, your activities of conducting hunting tests under the rules and regulations of E and F and your
animal training classes are not within the meaning of educational as defined in Treas. Reg. Section 1.501(c)(3)-
1(d)(3)(i). Instead, these activities are for the recreation of your members which is a nonexempt purpose. As
provided for in Better Business Bureau, this substantial, non-exempt purpose precludes exemption under IRC
Section 501(c)(3).

Letter 4034 (Rev. 01-2021)
Catalog Number 47628K

4

Conclusion

Based on the information submitted, you are not operated exclusively for exempt purposes within the meaning
of IRC Section 501(c)(3) because your activities further substantial nonexempt purposes. Thus, you do not
qualify for exemption under Section 501(c)(3).

If you agree

If you agree with our proposed adverse determination, you don’t need to do anything. If we don’t hear from
you within 30 days, we’ll issue a final adverse determination letter. That letter will provide information on
your income tax filing requirements.

If you don't agree

You have a right to protest if you don’t agree with our proposed adverse determination. To do so, send us a
protest within 30 days of the date of this letter. You must include:

• Your name, address, employer identification number (EIN), and a daytime phone number
• A statement of the facts, law, and arguments supporting your position
• A statement indicating whether you are requesting an Appeals Office conference.
• The signature of an officer, director, trustee, or other official who is authorized to sign for the
organization or your authorized representative.
• The following declaration:

For an officer, director, trustee, or other official who is authorized to sign for the organization:
Under penalties of perjury, I declare that I have examined this request, or this modification to the
request, including accompanying documents, and to the best of my knowledge and belief, the request
or the modification contains all relevant facts relating to the request, and such facts are true, correct,
and complete.

Your representative (attorney, certified public accountant, or other individual enrolled to practice before the
IRS) must file a Form 2848, Power of Attorney and Declaration of Representative, with us if they haven’t
already done so. You can find more information about representation in Publication 947, Practice Before the
IRS and Power of Attorney.

We’ll review your protest statement and decide if you gave us a basis to reconsider our determination. If so,
we’ll continue to process your case considering the information you provided. If you haven’t given us a basis
for reconsideration, we’ll send your case to the Appeals Office and notify you. You can find more information
in Publication 892, How to Appeal an IRS Determination on Tax-Exempt Status.

If you don’t file a protest within 30 days, you can’t seek a declaratory judgment in court later because the
law requires that you use the IRC administrative process first (IRC Section 7428(b)(2)).

Where to send your protest

Send your protest, Form 2848, if applicable, and any supporting documents to the applicable address:

Letter 4034 (Rev. 01-2021)
Catalog Number 47628K

5

U.S. mail:

Internal Revenue Service
EO Determinations Quality Assurance
Mail Stop 6403
PO Box 2508
Cincinnati, OH 45201

Street address for delivery service:

Internal Revenue Service
EO Determinations Quality Assurance
550 Main Street, Mail Stop 6403
Cincinnati, OH 45202

You can also fax your protest and supporting documents to the fax number listed at the top of this letter. If you
fax your statement, please contact the person listed at the top of this letter to confirm that they received it.

You can get the forms and publications mentioned in this letter by visiting our website at www.irs.gov/forms-
pubs or by calling 800-TAX-FORM (800-829-3676). If you have questions, you can contact the person listed at
the top of this letter.

Contacting the Taxpayer Advocate Service

The Taxpayer Advocate Service (TAS) is an independent organization within the IRS that can help protect your
taxpayer rights. TAS can offer you help if your tax problem is causing a hardship, or if you’ve tried but haven’t
been able to resolve your problem with the IRS. If you qualify for TAS assistance, which is always free, TAS
will do everything possible to help you. Visit www.taxpayeradvocate.irs.gov or call 877-777-4778.

Sincerely,

Stephen A. Martin
Director, Exempt Organizations
Rulings and Agreements

Letter 4034 (Rev. 01-2021)
Catalog Number 47628K