[Julie Jordan]

A"non-profit" has become a generic name for a tax-exempt organization. The profits earned in these organizations are not subject to income taxes. They have profits (or else they won't be in existance long), can own properties, most anything a normal business can do. If they have "unrelated business income" then those profits are subject to tax.

NHRA is a 501(c)(6) organization (IRS code section).An IRC 501(c)(6) organization is a membership organization characteristically supported by dues. While such an organization may receive a substantial portion or even the primary part of its income from non-member sources, membership support, both in the form of dues and involvement in the organization's activities, must be at a meaningful level (thus we all pay annual "dues"). There is no requirement that the members have any say in the operations. The original bylaws and articles of incorporation or association would outline how the board of directors is determined.

No one "owns" NHRA. Should the organization dissolve or be sold the assets would have to be distributed to a similar type organization. Again, the bylaws would clarify where these assets would go. Most states (in California it would be the State Attorney General's office) would have to approve a sale and distribution of assets to insure they did, indeed, go to their intended purpose.

The NHRA Museum is a 501(c)(3) organization, basically a charitable organization. Payments made to this entity would be tax-deductible. Payments made to NHRA are not.

Probably the largest and most successful 501(c)(6) organization is the NFL.