A possessory interest consisting of property or improvements pursuant to a lease from this state or a political subdivision of this state is exempt from taxation if it is used by an association or institution that meets all of the following requirements:

1. 1. The purpose of the association or institution is educational or charitable activities.
2. 2. Its annual gross revenues do not exceed fifty thousand dollars.
3. 3. It is not operated for profit.
4. 4. It is recognized under section 501(c)(3) of the internal revenue code.