IHC Care, Inc. - Page 22




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          supra at 573-575 (1978).                                                    
               Section 501(c)(3) specifies various qualifying exempt                  
          purposes, including "charitable" purposes.  The term "charitable"           
          is not defined in section 501(c)(3) but is used in its generally            
          accepted legal sense.  See Nationalist Movement v. Commissioner,            
          102 T.C. 558 (1994), affd. per curiam 37 F.3d 216 (5th Cir.                 
          1994); sec. 1.501(c)(3)-1(d)(2), Income Tax Regs.                           
          Charitable Purpose                                                          
               The Supreme Court has stated that “Charitable exemptions are           
          justified on the basis that the exempt entity confers a public              
          benefit-–a benefit which the society or the community may not               
          itself choose or be able to provide, or which supplements and               
          advances the work of public institutions already supported by tax           
          revenues.”  Bob Jones Univ. v. United States, supra at 591.                 
          Although neither the furnishing of medical care nor the operation           
          of an HMO is listed as a qualifying exempt activity under section           
          501(c)(3), it is now well settled that the promotion of health              
          for the benefit of the community is a charitable purpose.  See              
          Redlands Surgical Servs. v. Commissioner, supra at 73; Sound                
          Health Association v. Commissioner, supra at 177-181.  As                   
          discussed in detail below, a health-care provider seeking tax-              











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