Resource Management Foundation - Page 6




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               the primary purpose of the foundation, as stated in its                
               oroginal [sic] application for exemption, * * * [was]                  
               amended to read as follows:                                            
                    "The primary purpose of the foundation will be to                 
               raise funds for financially strap families living                      
               within the immediate area of the foundation's base of                  
               operation with all funds being administered by other                   
               IRS approved 501(c)(3) charitable organizations such as                
               the Salvation Army, United Way and the Catholic                        
               Church".                                                               
               * * * the foundation will limit its currect [sic] fund                 
               raising activities to raising funds directly from its                  
               officers, directors and their immediate familites                      
               [sic], friends and business associates.                                
          The second Form 1023 did not list specifics as to petitioner's              
          operations, including the manner in which petitioner would effect           
          its primary purpose.  The second Form 1023 did not address any              
          safeguards against private inurement.                                       
               On April 9, 1996, the Commissioner mailed a letter to                  
          petitioner explaining that it had not yet described its                     
          operations in sufficient detail.  The letter set forth four items           
          of information that the Commissioner lacked as to petitioner,               
          including a definition of the term "financially strap" as set               
          forth in the second Form 1023.                                              
               By way of an undated letter, Mr. Tully responded to the                
          Commissioner's letter of April 9, 1996.  The response was                   
          generally vague as to the information sought.  As to the                    
          definition of the term "financially strap", the letter stated:              
                    This organization defines the term "financially                   
               strap" as a temporary condition wherein the person, or                 





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