Hutterite colonies are formed voluntarily by adult males who agree upon certain rights
and obligations among themselves and on behalf of their families. The main purpose
of the colonies is to live a communal life following the tenets of the Hutterische
Church society. The colonies, while religious, engage in agricultural activities (farming,
raising stock, dairying, etc.).
In the Denver Region, two types of colonies have been identified. The most common
type is a nonprofit corporation with corporate officers and a board of directors.
Generally, the officers do not draw a salary and the colonies do not issue stock certificates.
The corporations are tax exempt under Section 501(d) of the Internal Revenue Code
and are required to file a United States partnership income tax return (Form 1065).
Individual members may or may not file individual tax returns.
The other type of Hutterite colony found in the Denver Region is an unincorporated
religious association. Like the incorporated colonies, they are nonprofit and tax-exempt
under Section 501(d). Instead of officers or directors, they have a board of trustees.
They also file partnership tax returns. There are very few such associations. The
majority of colonies are incorporated.