Tate Family Foundation - Page 9




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          also Rule 217(c)(2)(A); Fed. R. Evid. 301.  If petitioner fails             
          to carry its burden, respondent will prevail.  See Rockwell v.              
          Commissioner, 512 F.2d 882, 885 (9th Cir. 1975), affg. T.C. Memo.           
          1972-133; American Pipe & Steel Corp. v. Commissioner, 243 F.2d             
          125, 126 (9th Cir. 1957), affg. 25 T.C. 351 (1955); Estate of               
          Gilford v. Commissioner, supra at 51.                                       
               Section 501 provides in part:                                          
                    SEC. 501(a).  Exemption From Taxation.--An                        
               organization described in subsection (c) * * * shall be                
               exempt from taxation under this subtitle unless such                   
               exemption is denied under section 502 or 503.                          
                           *    *    *    *    *    *    *                            
                    (c) List of Exempt Organizations.--The following                  
               organizations are referred to in subsection (a):                       
                           *    *    *    *    *    *    *                            
                         (3) Corporations, and any community                          
                    chest, fund, or foundation, organized and                         
                    operated exclusively for religious,                               
                    charitable, scientific, testing for public                        
                    safety, literary, or educational purposes,                        
                    * * * no part of the net earnings of which                        
                    inures to the benefit of any private                              
                    shareholder or individual, no substantial                         
                    part of the activities of which is carrying                       
                    on propaganda, or otherwise attempting, to                        
                    influence legislation, * * * and which does                       
                    not participate in, or intervene in * * * any                     
                    political campaign on behalf of (or in                            
                    opposition to) any candidate for public                           
                    office.                                                           
          From this text, we understand that an organization is entitled to           
          exempt status if it is organized and operated exclusively for               
          charitable purposes.  See also sec. 1.501(c)(3)-1(a)(1), Income             





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