- 5 -
(1988); Taylor v. Commissioner, T.C. Memo. 2000-17. To qualify
for exemption under section 501(c)(3), the entity must (1) be
organized and operated exclusively for religious or charitable
purposes, (2) have no part of its earnings inuring to the benefit
of a private individual, and (3) have no substantial part of its
activities consist of the dissemination of propaganda or be
otherwise attempting to influence legislation. Sec. 1.501(c)(3)-
1, Income Tax Regs. Although they are separate requirements, the
“private inurement” test and the “operated exclusively for exempt
purposes” test prescribed by section 501(c)(3) often
substantially overlap. Church of Ethereal Joy v. Commissioner,
83 T.C. 20, 21 (1984). It is these two tests, in conjunction,
that the Court addresses in deciding this case.
Petitioner claims that the Center operated exclusively for
an exempt purpose, as a church, contending that the Center held
regular services, received offerings, and had a clearly
identifiable membership. Despite this testimony, however,
petitioner offered little evidence to substantiate his claim.
There is no evidence that petitioner, as its pastor, performed
marriages, burials, baptisms, or other sacerdotal functions, and,
while petitioner did obtain an associate’s degree from West
Angeles Church in California, he is not a licensed or ordained
minister. Furthermore, although petitioner testified the Center
kept books and records documenting the offerings it received and
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011