Alumni Association of the University of Oregon, Inc. - Page 23

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          States v. American College of Physicians, 475 U.S. 834, 837-838             
          (1986).  Respondent contends that petitioner's participation                
          in the affinity credit card program is the type of unfair                   
          competition between tax-exempt organizations and taxable                    
          businesses that Congress intended to subject to the UBIT.  We               
          disagree.  Petitioner's activity was de minimis.  USNB was                  
          competing with other credit card issuers, but petitioner was not.           
              Respondent cites United States v. American Bar Endowment,              
          477 U.S. 105 (1986).  In American Bar Endowment, the Supreme                
          Court found that the taxpayer's activity created the kind of                
          unfair competition that led to the enactment of section 512.                
          Id. at 114.  The American Bar Endowment (ABE) raised money by               
          providing group insurance policies to its members.  Id. at 107.             
          ABE bought a group policy for its members and paid a negotiated             
          premium to the insurance company.  Id. at 107-108.  If the                  
          insurance company's cost of providing insurance to the group was            
          lower than the premium, the company refunded the excess.  Id.               
          at 108.  The excess amounts were called dividends.  Id.  ABE                
          required all members to agree, as a condition of participating              
          in the group insurance program, that ABE and not the members                
          would keep the dividends.  Id.  ABE told its members that the               
          members' share of the dividends, less ABE's administrative costs,           
          was a tax-deductible contribution from the members to ABE.  Id.             
               ABE actively administered the group insurance program.  Id.            
          ABE's activities included choosing insurers, negotiating premium            




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