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extent that petitioner cedes control over its sole activity to
for-profit parties having an independent economic interest in the
same activity and having no obligation to put charitable purposes
ahead of profit-making objectives, petitioner cannot be assured
that the partnerships will in fact be operated in furtherance of
charitable purposes. In such a circumstance, we are led to the
conclusion that petitioner is not operated exclusively for
charitable purposes.
Based on the totality of factors described below, we
conclude that petitioner has in fact ceded effective control of
the partnerships’ and the Surgery Center’s activities to for-
profit parties, conferring on them significant private benefits,
and therefore is not operated exclusively for charitable purposes
within the meaning of section 501(c)(3).
B. Indicia of For-Profit Control Over the Partnerships’
Activities
1. No Charitable Obligation
Nothing in the General Partnership agreement, or in any of
the other binding commitments relating to the operation of the
Surgery Center, establishes any obligation that charitable
purposes be put ahead of economic objectives in the Surgery
Center’s operations. The General Partnership agreement does not
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