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operational test. See sec. 1.501(c)(3)-1(a)(1), Income Tax Regs.
The organizational test is set forth in section 1.501(c)(3)-
1(b)(1)(i):
(i) An organization is organized exclusively for
one or more exempt purposes only if its articles of
organization * * * as defined in subparagraph (2) of
this paragraph:
(a) Limit the purposes of such organization
to one or more exempt purposes; and
(b) Do not expressly empower the organization
to engage, otherwise than as an insubstantial part
of its activities, in activities which in
themselves are not in furtherance of one or more
exempt purposes.[1]
[1]The term “articles of organization” includes an
organization’s articles of association. Sec. 1.501(c)(3)-
1(b)(2), Income Tax Regs.
Furthermore, to satisfy the organizational test, an organization
must serve a public rather than a private interest. See sec.
1.501(c)(3)-1(d)(1)(ii), Income Tax Regs; Columbia Park &
Recreation Association, Inc. v. Commissioner, 88 T.C. 1, 13
(1987), affd. without published opinion 838 F.2d 465 (4th Cir.
1988); Retired Teachers Legal Fund, Inc. v. Commissioner, 78 T.C.
280, 286 (1982); Baltimore Regl. Joint Bd. Health & Welfare Fund
v. Commissioner, 69 T.C. 554 (1978).
Even if an organization’s articles of organization set forth
purposes no broader than those specified in section 501(c)(3),
the organization is not organized exclusively for exempt purposes
if such articles expressly empower it to carry on (other than as
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