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direction of the supported organization); (2) the supporting
organization may be supervised or controlled in connection with
one or more publicly supported organizations (comparable to a
brother-sister relationship where the entities are under common
control); and (3) the supporting organization may be operated in
connection with one or more publicly supported organizations
(where the supporting organization is otherwise responsive to,
and significantly involved in the operations of, the publicly
supported organization). Sec. 1.509(a)-4(f) to (i), Income Tax
Regs. Petitioner here contends that it falls within the third of
the alternatives just described.
The regulations further impose two specific tests that must
be satisfied in order for an organization to qualify as operated
in connection with a publicly supported entity; namely, the
responsiveness test and the integral part test. Sec. 1.509(a)-
4(i), Income Tax Regs. The responsiveness test is designed to
ensure that the supporting organization is responsive to the
needs of the publicly supported organization by requiring that
the supported organization have the ability to influence the
activities of the supporting organization. Sec. 1.509(a)-
4(i)(2), Income Tax Regs. As relevant herein, the test mandates
that:
(a) One or more officers, directors, or trustees
of the supporting organization are elected or appointed
by the officers, directors, trustees, or membership of
the publicly supported organizations;
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