A 501c (6) nonprofit organization is an association that promotes higher business practices, better business methods and establishes integrity within an industry. Although they may benefit specific businesses, they do not make a profit for themselves or their board members like other nonprofits.

A 501 (c) (6) membership-based nonprofit is an organization that exists to promote its members' business interests, without the goal of making a profit. In addition, these organizations must make sure that no one individual or shareholder benefits financially from the organization's income.

A 501c6 organization is an association of persons having common business interests. The organizations’ purpose must be to promote their common interest and improve business conditions, not to engage in a regular business for a profit.

The Statute IRC 501(c)(6) provides for exemption of business leagues, chambers of commerce, real estate boards, boards of trade, and professional football leagues (whether or not administering a pension fund for football players), which are not organized for profit and no part of the net earnings of which inures to the benefit of any private shareholder or individual.

By definition, 501 (c) (6) nonprofits are a collection of individual persons with common business interests. Those interests could include anything from assisting local businesses in the community to building a professional football league.