Women of the Motion Picture Industry, et al. - Page 18

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          beano account could not exceed the lesser of $50,000 or the                  
          amount of net proceeds reported on the organization's annual                 
          report most recently filed annual report.  Respondent argues that            
          the Texas Act is distinguishable in that section 11(d) of the Act            
          does not require that net proceeds be devoted to charitable                  
          purposes within a particular taxable year.                                   
               In our view, respondent is attempting to narrow the holding             
          of South End Italian Independent Club, Inc. v. Commissioner,                 
          supra.  Respondent relies on a temporal constraint that is not               
          expressed in the Court's opinion.  Further, we do not infer from             
          the Court's opinion that such a requirement was necessarily                  
          contemplated.  See supra note 9.                                             
               In addition, it is clear WSA risked losing its bingo license            
          if it used any part of its net bingo proceeds, above or below the            
          minimum amount, for other than charitable purposes.  Respondent              
          contends that an organization's license will not be suspended if             
          the organization makes the minimum charitable disbursements.                 
          However, an organization must also comply with section 11(d) of              
          the Act which requires that net proceeds from bingo be devoted to            
          charitable purposes.  If the agency responsible for regulating               
          bingo finds that an organization has disbursed funds for a                   
          purpose other than for payment of expenses allowed under the Act             
          or for charitable purposes, the agency will issue a "show                    
          compliance letter."  Administrative actions thereafter may lead              
          to revocation or suspension of such organization's license.                  




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