The article titled "Health Clubs Hit YMCA Tax Breaks" {June 30} quotes Rep. J. J. Pickle, referring to testimony about a program offered by the Beverly Hills, Calif., YMCA, as stating, "It's hard for me to see how income from yachting classes can be tax-exempt."

Neither the Beverly Hills YMCA nor any YMCA, to our knowledge, offers yachting classes. YMCAs do offer tutorial classes for underprivileged children, smoking cessation classes, drug-abuse education plus a host of other community service programs.

It would seem that Rep. Pickle was given incorrect information or that he has confused the YMCA with the Beverly Hills Workout Club, which, according to The Wall Street Journal, recently went bankrupt, resulting in hundreds of its members reportedly losing thousands of dollars.

If the International Racket Sports Association would focus its attention on correcting abuses in the health-spa industry, it would not have to blame YMCAs for its membership problems.

The issue, however, is much broader than YMCAs versus the health-spa industry. The Small Business Administration wants to revise tax-exemption requirements in order to tax nonprofit income derived from markets in which small businesses operate.

Nonprofit hospitals, colleges, child-care organizations and nursing homes are increasingly coming under attack. The general public must be made aware of this threat to many of the community service institutions that for over a century have provided essential services to millions of citizens. THOMAS B. HARGRAVE JR. President YMCA of Metropolitan Washington Washington