- 12 -
Discussion
Section 501(a) exempts from Federal taxation organizations
described in section 501(c)(3).5 To qualify as an organization
described in section 501(c)(3), an organization must satisfy each
of the following four requirements: (1) It must be organized and
operated exclusively for certain specified exempt purposes; (2)
no part of its net earnings may inure to the benefit of a private
shareholder or individual; (3) no part of its activities may
constitute intervention or participation in any political
campaign on behalf of any candidate for public office; and (4) no
substantial part of its activities may consist of political or
lobbying activities.6 See sec. 501(c)(3); Fla. Hosp. Trust Fund
5SEC. 501(a). Exemption from Taxation.--An organization
described in subsection (c) * * * shall be exempt from taxation
* * *.
6SEC. 501(c). List of Exempt Organizations.--The following
organizations are referred to in subsection (a):
* * * * * * *
(3) Corporations, and any community chest, fund, or
foundation, organized and operated exclusively for
religious, charitable, scientific, testing for public
safety, literary, or educational purposes, or to foster
national or international amateur sports competition (but
only if no part of its activities involve the provision of
athletic facilities or equipment), or for the prevention of
cruelty to children or animals, no part of the net earnings
of which inures to the benefit of any private shareholder or
individual, no substantial part of the activities of which
is carrying on propaganda, or otherwise attempting, to
influence legislation (except as otherwise provided in
subsection (h)), and which does not participate in, or
(continued...)
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011