Wayne Baseball, Inc. - Page 6

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          operated as a section 501(c)(3) organization.  The operational              
          test requires the activities of an organization to be primarily             
          those that accomplish an exempt purpose as described in section             
          501(c)(3).  See sec. 1.501(c)(3)-1(c)(1), Income Tax Regs.  A               
          single substantial nonexempt purpose will disqualify an                     
          organization despite the importance of its exempt purpose.  See             
          Better Business Bureau v. United States, 326 U.S. 279, 283                  
          (1945).  If an organization serves private rather than public               
          interests, it also will not meet the operational test.  See sec.            
          1.501(c)(3)-1(d)(1)(ii), Income Tax Regs.                                   
               Petitioner contends that it operates exclusively for one or            
          more exempt purposes within the meaning of section 501(c)(3) and            
          does not further private interests.  In support of this                     
          assertion, petitioner relies on Hutchinson Baseball Enters., Inc.           
          v. Commissioner, supra at 155-156, which held that the promotion            
          of amateur baseball is an exempt purpose.  Respondent argues that           
          petitioner does not qualify under section 501(c)(3) because more            
          than an insubstantial part of the activities of petitioner                  
          furthers nonexempt social and recreational interests of its                 
          members.  Respondent relies on the similarities of this case to             
          Media Sports League, Inc. v. Commissioner, T.C. Memo. 1986-568,             
          which denied exempt status to an amateur sports league.                     
               Section 501(c)(3) exempt purposes are those of a charitable            
          character and are not limited to the classifications enumerated             

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