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The exception to the substantiation and disclosure
requirements in sections 170(f)(8) and 6115 for intangible
religious benefits does not apply to the educational services at
issue here. The exception applies only where the organization is
organized exclusively for religious purposes. Petitioners
contend that Emek and Yeshiva Rav Isacsohn were organized and
existed solely for the religious purpose of allowing Jewish
parents to fulfill their religious obligation to teach their
children Torah, which includes providing a secular education in
an Orthodox Jewish environment.
We disagree that Emek and Yeshiva Rav Isacsohn were
organized exclusively for religious purposes. Emek and Yeshiva
Rav Isacsohn were organized and operated to provide both a
secular and a religious education. The Commissioner granted both
schools exemptions from tax under section 501(c)(3), and both
schools qualify as charitable organizations described in section
170(b)(1)(A)(ii), which pertains to educational organizations. A
substantial part of each day was spent on secular studies.
Petitioners concede that the education their children received in
1995 at Emek and Yeshiva Rav Isacsohn met educational
requirements imposed by the State of California. Both schools
were accredited by nonreligious accrediting agencies based in
part on their secular educational programs.
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