1. An institution or organization which is conducted, managed or carried on wholly for the benefit of charitable purposes and from which profit or income is not derived, either directly or indirectly, by any employee, officer or director of the organization.

2. An institution or organization which is exempt from filing information returns under 26 U.S.C. § 6033(a)(2) as it existed on November 1, 1992, provided, however, this exemption shall not apply to ordinary business transactions, unrelated to the exempt purposes of the institution or organization, involving the sale of goods or rental of property when such sale or rental produces gross receipts in excess of five hundred thousand dollars per license per year. Such transactions shall be taxed at the same rate and in the same manner as activities covered by Section 9.04.305.