- 20 - for denying an organization's application for exemption. See Aid to Artisans, Inc. v. Commissioner, 71 T.C. 202, 208 (1978). Thus, in making our declaration, we do not engage in a de novo review of the administrative record. See Am. Campaign Acad. v. Commissioner, supra at 1063; Church in Boston v. Commissioner, 71 T.C. 102, 105-106 (1978); Houston Lawyer Referral Serv., Inc. v. Commissioner, supra at 573-574, 577. The burden of proof is on the organization to overcome the grounds for denial of the exemption set forth in the Commissioner’s determination. See Rule 217(c)(4)(A); Fla. Hosp. Trust Fund v. Commissioner, supra at 146; Christian Manner Intl., Inc. v. Commissioner, 71 T.C. 661, 664-665 (1979); Hancock Acad. of Savannah, Inc. v. Commissioner, 69 T.C. 488, 492 (1977). The parties do not dispute that petitioner was organized for an exempt purpose within the meaning of section 501(c)(3). The dispute in this case centers on whether petitioner was operated exclusively for an exempt purpose. Section 1.501(c)(3)-1(c)(1), Income Tax Regs., provides: (c) Operational test--(1) Primary activities. An organization will be regarded as "operated exclusively" for one or more exempt purposes only if it engages primarily in activities which accomplish one or more of such exempt purposes specified in section 501(c)(3). An organization will not be so regarded if more than an insubstantial part of its activities is not in furtherance of an exempt purpose. The operational test focuses on the actual purposes the organization advances by means of its activities, rather than onPage: Previous 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Next
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