A bill to clarify the exempt status of joint activities of educational organizations under the Internal Revenue Code of 1954.

Provides, under the Internal Revenue Code, that an educational organization shall be treated as an organization organized and operated exclusively for charitable purposes if: (1) such organization is organized and operated solely to perform, on a centralized basis, one or more of the following services which, if performed on its own behalf by a tax exempt organization would constitute activities in exercising or performing the purpose or function constituting the basis for its exemption: computer service, purchasing, warehousing, billing and collection, food, industrial engineering, library, investment, research, laboratory, printing, communications, record center, instructional services, solicitation of financial support, academic personnel, and student services; and (2) such organization is not operated for profit, and amounts payable by such educational institutions for services performed for them are determined on the basis of the amount of services so performed and are intended in each case not to exceed the allocable cost of such services and are not in fact in any case significantly in excess thereof. (Amends 26 U.S.C. 501)