- 44 -
secs. 368, 372 (4th ed. 1989). As applied to determinations of
qualification for tax exemption, the definition of the term
“charitable” has not been static. See Eastern Ky. Welfare Rights
Org. v. Simon, supra at 1287-1290; Sound Health Association v.
Commissioner, supra. Suffice it to say that, in recognition of
changes in the health-care industry, the standard no longer
requires that “the care of indigent patients be the primary
concern of the charitable hospital, as distinguished from the
care of paying patients”. Sound Health Association v.
Commissioner, supra at 180. Rather, the standard reflects "a
policy of insuring that adequate health care services are
actually delivered to those in the community who need them.” Id.
at 180-181. Under this standard, health-care providers must meet
a flexible community benefit test based upon a variety of
indicia, one of which may be whether the organization provides
free care to indigents. Cf. id. at 184-185 (subsidized dues
program was an indicium of charitable purposes).
To benefit the community, a charity must serve a
sufficiently large and indefinite class; as a corollary to this
rule, private interests must not benefit to any substantial
degree. See id. at 181.
C. Proscription Against Benefiting Private Interests
An organization does not operate exclusively for exempt
purposes if it operates for the benefit of private interests such
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