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Discussion
Petitioner bears the burden of proving that it is a section
501(c)(3) organization. See Rule 217(c)(2)(A). In order for
petitioner to meet this burden, the administrative record, upon
which this case is to be decided, must contain enough evidence to
support a finding contrary to the grounds set forth in the notice
of determination. See Nationalist Movement v. Commissioner, 102
T.C. 558, 572 (1994), affd. 37 F.3d 216 (5th Cir. 1994); Church
in Boston v. Commissioner, 71 T.C. 102, 105 (1978). A statute
creating an exemption must be strictly construed. See American
Auto. Association v. Commissioner, 19 T.C. 1146, 1158 (1953);
Associated Indus. v. Commissioner, 7 T.C. 1449, 1464 (1946).
Section 501(a) provides tax-exempt status for organizations
described in section 501(c). Section 501(c)(3) includes the
following organizations:
(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.
Contributions to organizations described in section 501(c)(3) are
generally deductible to donors. See sec. 170(a)(1), (c)(2).
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