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of petitioner’s net earnings to a private shareholder or
individual in petitioner’s fiscal 1986.
We hold for respondent on this issue.
(3) Check to Ohio Boys Town
Petitioner gave a $2,500 check to Ohio Boys Town. Ohio Boys
Town endorsed the check in blank. Popovic endorsed the check in
blank. AmeriTrust Co. deposited the check. The record does not
show who actually received the money, but both sides assume that
Popovic did. It appears that the check, or the proceeds of the
check, should have gone back to petitioner. The record does not
show why the money did not go back to petitioner.
Respondent contends that the $2,500 was not a charitable
contribution by petitioner, but rather was an inurement to
Popovic. But any taking by Popovic in this context would have
been an unauthorized taking, essentially a theft similar to the
bingo proceeds skimming that Popovic and Zeve engaged in. For
the reasons set forth supra under (1) Diverted Bingo Proceeds, we
conclude that such a diversion of the $2,500 check to Ohio Boys
Town is not an inurement of net earnings.
We hold for petitioner on this issue.
(4) Bingo Rental Payments for the Center
Respondent contends that petitioner’s fiscal 1984 and 1985
payments of $250 per bingo session to P&R as rental for the
Center constitute inurements of net earnings to Zeve and Popovic,
who were part owners of P&R. Petitioner maintains that it had to
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