- 21 -
the organization's statement of purpose or the nature of its
activities. See Am. Campaign Acad. v. Commissioner, supra at
1064; Aid to Artisans, Inc. v. Commissioner, supra at 210-211.
Although an organization might be engaged in only a single
activity, that single activity might be directed toward multiple
purposes, both exempt and nonexempt. See Redlands Surgical
Servs. v. Commissioner, 113 T.C. 47, 72 (1999), affd. per curiam
242 F.3d 904 (9th Cir. 2001). "[T]he presence of a single
* * * [non-exempt] purpose, if substantial in nature, will
destroy the exemption regardless of the number or importance of
truly * * * [exempt] purposes." Better Bus. Bureau, Inc. v.
United States, 326 U.S. 279, 283 (1945); see Manning Association
v. Commissioner, 93 T.C. 596, 603-605 (1989); Am. Campaign Acad.
v. Commissioner, supra at 1065.
Whether an organization operates for a substantial nonexempt
purpose is a question of fact to be resolved on the basis of all
the evidence presented in the administrative record. See Church
By Mail, Inc. v. Commissioner, 765 F.2d 1387, 1390 (9th Cir.
1985), affg. T.C. Memo. 1984-349. For purposes of the instant
proceeding, we assume that the facts as represented in the
administrative record are true, although in the course of our
review we may draw our own ultimate conclusions and inferences
from the facts. See Am. Campaign Acad. v. Commissioner, supra at
1063-1064; Houston Lawyer Referral Serv., Inc. v. Commissioner,
Page: Previous 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 NextLast modified: May 25, 2011