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protest a copy of a one-page handout entitled “Educational
Solutions” stating that petitioner has developed an educational
curriculum. Petitioner also attached a copy of “Articles of
Amendment” purporting to amend its bylaws by removing Mr.
Dennis’s wife as a director and adding two other individuals as
directors.
E. Denial of Petitioner’s Application for Exemption
Ultimately, on September 15, 2006, respondent issued a final
adverse determination letter, upon which the instant declaratory
judgment action is based. In the letter, respondent determined
that petitioner did not qualify for exemption under section
501(a) as an organization described under section 501(c)(3)
because petitioner: (1) Was not organized exclusively for exempt
purposes; (2) was not operated exclusively for exempt purposes;
and (3) failed to establish that it did not operate for a
substantial nonexempt purpose.
Respondent stated that petitioner’s origination script was
entirely devoted to selling DMPs and obtaining information about
the caller’s unsecured debt and that the script did not provide
for determining the caller’s broader financial situation,
assisting the caller in making a budget, or proposing any
alternatives to the DMP. Respondent noted petitioner did not
provide any of the meaningful educational materials that
petitioner claimed to be developing. Respondent further noted
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