Christie E. Cuddeback and Lucille M. Cuddeback Memorial Fund - Page 12




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                  In due course, respondent determined in a                           
             final adverse ruling that petitioner failed to qualify                   
             as a nonprivate foundation under section 509(a)(3).                      
             According to the final adverse determination letter, the                 
             determination is based upon the fact that "You have failed               
             to establish that you meet the requirements for exemption                
             under section 509(a)(3) of the Internal Revenue Code."  In               
             response, petitioner timely filed the instant petition for               
             declaratory judgment with the Court.                                     

                                     Discussion                                       
                  The issue for decision in this case is whether                      
             petitioner is an organization described by section                       
             509(a)(3), a so-called supporting organization, one type                 
             of section 501(c)(3) organization that is excepted from                  
             treatment as a private foundation.  See sec. 509(a).  In                 
             order to qualify as a supporting organization, an entity                 
             must satisfy the three requirements set forth in section                 
             509(a)(3).  Section 509(a)(3) provides, in pertinent part,               
             as follows:                                                              

                  SEC. 509.  PRIVATE FOUNDATION DEFINED                               
                       (a) General Rule.--For purposes of this                        
                  title, the term "private foundation" means a                        
                  domestic or foreign organization described in                       
                  section 501(c)(3) other than-–                                      
                  *       *       *       *       *       *       *                   





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