Bob Jones University Museum and Gallery, Inc. - Page 8

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          its association with petitioner.  Even if none of these factors             
          alone is found to be disqualifying, respondent maintains that               
          their cumulative effect precludes petitioner’s qualification for            
          exempt status.                                                              
               As a preliminary matter, we address respondent’s contention            
          that petitioner has conceded that it furthers a substantial                 
          nonexempt purpose.  Respondent emphasizes that petitioner’s                 
          application for tax-exempt status contained the following                   
          statement:  “One of the purposes behind the establishment of the            
          organization is to allow for gifts to be made to the museum and             
          art gallery as charitable contributions, whereas no such                    
          deduction would be allowed for such contributions if they were              
          given to the University.”  (Emphasis added.)  We do not agree               
          with respondent that this statement constitutes a disqualifying             
          admission of a nonexempt purpose.  The “purpose” of allowing                
          donors to deduct contributions, which presumably induces a larger           
          number and greater amount of contributions to an organization,              
          motivates virtually every organization’s decision to seek exempt            
          status.  If that objective precluded an organization from                   
          qualifying for tax exemption, few if any organizations would ever           
          satisfy the section 501(c)(3) requirements.  More importantly,              
          the sentence in petitioner's application immediately following              
          the one quoted above states:  “Contributions to the organization            
          will be used solely for the operation of the museum and art                 
          gallery and for acquisition of additional art as available funds            




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Last modified: May 25, 2011