Wayne Baseball, Inc. - Page 4

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          June 6, 1996.  Petitioner appealed to the Internal Revenue                  
          Service Office of Appeals, which gave a final adverse                       
          determination on July 1, 1998, denying tax-exempt status to                 
          petitioner under section 501(c)(3).  Respondent's reasons for               
          denial stemmed from his conclusion that petitioner is not                   
          operated exclusively for exempt purposes, in that a substantial             
          portion of the purposes and activities of petitioner is social              
          and recreational and inconsistent with the section 501(c)(3)                
          exemption.  Petitioner challenges that finding in this action for           
          declaratory judgment.                                                       
               Petitioner bears the burden of proving that it is a section            
          501(c)(3) organization.  Rule 217(c)(2)(A).  A statute creating             
          an exemption must be strictly construed.  See American Auto.                
          Association v. Commissioner, 19 T.C. 1146, 1158 (1953);                     
          Associated Indus. of Cleveland v. Commissioner, 7 T.C. 1449, 1464           
               Section 501(a) provides tax-exempt status for organizations            
          described in section 501(c).  Section 501(c)(3) includes the                
          following organizations:                                                    
                    (c)(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, or to foster national or                         
               international amateur sports competition (but only                     
               if no part of its activities involve the provision                     

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