Lapham Foundation, Inc. - Page 31




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          support charities in Northville, Michigan, or southeastern                  
          Michigan.  However, as found above, AEF is not bound by such                
          recommendations and can use the support received from petitioner            
          to fund charitable activities anywhere in the United States.                
               AEF endeavors through its grant making to benefit                      
          communities throughout the United States.  Yet such grant-making            
          activities cannot properly be characterized as something in which           
          AEF would be engaged but for petitioner’s support.  Rather,                 
          distributing grant moneys is something in which AEF is and will             
          continue to be engaged regardless of support from petitioner.               
          Hence, the record reveals no but-for relationship between                   
          petitioner’s operations and those of AEF and, accordingly, cannot           
          establish the type of dependency sought by the integral part                
          test.                                                                       
               B.  Attentiveness Subtest                                              
               Under the attentiveness subtest, (1) the supporting                    
          organization must make payments of substantially all of its                 
          income to or for the use of the supported organization, and (2)             
          either (a) the amount of support must be sufficient to ensure the           
          attentiveness of the supported entity or (b) the funds must be              
          earmarked for a substantial program or activity of the supported            
          entity, such that the supported organization will be attentive to           
          avoid interruption thereof.  Sec. 1.509(a)-4(i)(3)(iii)(a) and              
          (b), Income Tax Regs.                                                       






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Last modified: May 25, 2011