SI DEN00501.010 Hutterite Colonies

A. General

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.

B. Living Arrangements

The living arrangement (LA) for adults living in a colony is always "A." For a child living with parents, the LA code is "C." The VTR (i.e., LA-B) cannot apply because the food and shelter is provided by the corporation and not the householder.

C. In-Kind Support and Maintenance (ISM) Considerations

All food, clothing, and shelter is owned and provided by the corporation/association and represents ISM to individual colony members subject to the presumed maximum value (PMV). The PMV of ISM can be reduced upon a successful rebuttal establishing that the value of all ISM received (food, clothing, and shelter) is less than the PMV. The Church Amendment ISM exclusion (SI 00835.710) does not apply since the colonies are not institutions.

D. Other Income Considerations

Hutterite members can receive cash payments from the colony to meet special expenses. These payments count as cash (type "S") unearned income unless excluded under some other provision such as infrequent or irregular.

Tax returns (if filed) of individual colony members may show a distributive share of earnings from the colony. The distributive share may be identified as partnership income, dividends, etc. While for tax purposes a distributive share may be reportable to the Internal Revenue Service (IRS), do not charge this as income unless actually received by the colony member.

It is possible for a member to have other income (earned or unearned) from a source outside the colony. Such income would be turned over to the colony under the membership rules, but would count as income to the individual member. Any questionable income should be brought to the attention of the Dallas/Denver SSI Team for possible referral to the Office of the General Counsel (OGC).

E. Resources

The OGC has determined that where members of a religious communal society surrender all real and personal property to the society to be held in common for the benefit of all, no ownership rights remain. The assets of the colony are not resources to individual members filing for or receiving SSI. Examination of the corporate (or association) by-laws may be necessary to determine whether individual members have any ownership interest.

F. Development

DOs with Hutterite colonies in their service area may want to obtain precedent information for SSI claims.

  1. Articles of incorporation or articles of association (including by-laws);

  2. Most recent income tax return for the colony;

  3. Most recent personal income tax return for the SSI claimant (or deemor);

  4. Evidence showing the colony's status with IRS (IRS tax exempt ruling);

  5. Evidence from a knowledgeable source explaining if members receive their distributive share of the colony's income.

G. Colonies in Denver Region

The Chief Counsel and Dallas-Denver SSI Team staff have reviewed the agreements establishing various colonies. For each of the colonies listed below, property has been determined not to be available to individual members of the colony, and thus, it is not a resource for SSI purposes. Each member of these colonies receives ISM income counted under the presumed maximum value rule. Absent evidence to the contrary, accept an allegation that an individual is a member of a colony as long as he/she lives in the colony.

Montana

 

Ayes Ranch Colony

Grass Range, MT

Big Stone Colony

Sand Coulee, MT

Birch Creek Colony

Valier, MT

Deerfield Colony

Danvers, MT

Duncan Ranch Colony

Harlowton, MT

East End Colony

Havre, MT

East Malta Colony

Malta, MT

Fairhaven Colony

Ulm, MT

Ford's Creek Colony

Grass Range, MT

Forty (40) Mile Colony

Lodge Grass, MT

Flat Willow Colony

Roundup, MT

Gilford Colony

Gilford, MT

Glendale Colony

Cut Bank, MT

Hilldale Colony

Havre, MT

King Colony

Lewistown, MT

Loring Colony

Loring, MT

Martinsdale Colony

Martinsdale, MT

New Miami Colony

Pendroy, MT

North Harlem Colony

Harlem, MT

Pondera Colony

Valier, MT

Rockport Colony

Pendroy, MT

Spring Creek Colony

Hanover, MT

Spring Water Colony

Harlowton, MT

Surprise Creek Colony

Stanford, MT

Turner Colony

Turner, MT

Minnesota

 

Spring Prairie Colony

Glyndon, MN

North Dakota

 

Fairview Hutterian Colony

Lamoure County, ND

Sundale Colony

Milnor, ND

Willowbank Colony

Edgeley, ND

South Dakota

 

Blumengard Colony

Wecota, SD

Bon Homme Colony

Tabor, SD

Brentwood Colony

Wecota, SD

Cedar Grove Colony

Platte, SD

Clark Colony

Raymond, SD

Deerfield Colony

Ipswich, SD

Fordham Colony

Carpenter, SD

Glendale Colony

Frankfort, SD

Gracevale Colony

Winfred, SD

Greenwood Colony

Delmont, SD

Hillcrest Colony

Garden City, SD

Hillside Colony

Doland, SD

Huron Colony

Huron, SD

Hutterville Colony

Stratford, SD

Jamesville Colony

Utica, SD

Lakeview Colony

Lake Andes, SD

Long Lake Colony

Wetonka, SD

Mayfield Colony

Vienna, SD

Maxwell Colony

Scotland, SD

Millbrook Colony

Mitchell, SD

Millerdale Colony

Miller, SD

New Dale Colony (formerly Brook Dale)

Elkton, SD

New Elm Springs Colony

Ethan, SD

Newport Colony

Ipswich, SD

Old Elm Colony

Parkston, SD

Pearl Creek Colony

Iroquois, SD

Pembrook Colony

Ipswich, SD

Platte Colony

Academy, SD

Pleasant Valley Colony

Flandreau, SD

Poinsett Colony

Estelline, SD

Riverside Colony

Riverside, SD

Rolland Colony

Bushnell, SD

Rosedale Colony

Mitchell, SD

Spink Colony

Frankfort, SD

Spring Creek Colony*

Forbes, North Dakota

Spring Lake Colony

Arlington, SD

Spring Valley Colony

Wessington Springs, SD