Exempt organizations - Uncle Fed's Tax*Board

exceed 125 percent of the maximum authorized
rate of $35 provided by section 5702(a) of title 5,
U.S.C., notwithstanding the provision in section
5702(c) allowing higher rates in designated geographical
areas. §53.4941(d)-3. (Sec. 4941, ’86
Code.)
Rev. Rul. 77-251, 1977-2 C.B. 389.
214.121 Self-dealing; use of private road by
disqualified person. The use of a private foundation
museum’s private road for access to the adjacent
headquarters and manufacturing plant of a
corporation (a disqualified person) during the
same hours the road is used by the general public
as a thoroughfare connecting two public streets is
not an act of self-dealing. §§53.4941(d)–3. (Sec.
4941, ’86 Code.)
Rev. Rul. 76-459, 1976-2 C.B. 369.
214.122 Status; community trusts; reliance
period extended. The reliance period contained
in reg. 1.508–1(b)(4)(i) that permits grantors, contributors,
and distributors to rely on the claimed
public charity status of community trusts is
extended. §§1.170A-1, 1.508–1. (Sec. 601.201,
S.P.R.; Secs. 170, 508, ’86 Code.)
Rev. Proc. 77-20, 1977-1 C.B. 585.
214.123 Status; nonexempt charitable trusts.
A nonexempt charitable trust described in section
4947(a)(1) that is a private foundation must terminate
its private foundation status pursuant to section
507 before it can be excluded from such status
under section 509(a)(3). §1.509(a)-4. (Sec. 509,
’86 Code.)
Rev. Rul. 76-92, 1976-1 C.B. 160.
214.124 Status; section 508(b) presumption;
untimely notification. An organization formed
before October 9, 1969 is not precluded from classification
as other than a private foundation
merely because it failed to notify the Service by
the March 22, 1973 deadline given in the regulations
that it is not a private foundation as required
by section 508(b); its status as other than a private
foundation may be established by submitting a
request for a determination letter to the local District
Director. §§1.508–1, 1.509(a)–1. (Secs. 508,
509; ’86 Code.)
Rev. Rul. 73-504, 1973-2 C.B. 190.
214.125 Status; support received prior to
change in operations. Support received by an
organization prior to changes made in its operations
to enable it to qualify under section 501(c)(3)
is not taken into account in determining its foundation
status. §§1.170A-9, 1.509(a)–3. (Secs. 170,
509; ’86 Code.)
Rev. Rul. 77-116, 1977-1 C.B. 155.
214.126 Status; support received prior to
incorporation. An organization that filed an
application for recognition of exemption under
section 501(c)(3) in May 1976, following its
incorporation in November 1975 to succeed an
unincorporated association that had operated for
three years without filing an application, will be
recognized as exempt from the date of incorporation.
An advance ruling concerning the organization’s
private foundation may be requested on the
basis of support received since incorporation.
§§1.508-1, 1.509(a)-3. (Secs. 508, 509; ’86
Code.)
Rev. Rul. 77-469, 1977-2 C.B. 196.
214.127 Status; untimely notification. A corporation
that states it is a private foundation when
it files an application for recognition of exemption
subsequent to the 15 month deadline provided by
regulation is treated as an organization described
in section 501(c)(3) and as a private foundation
only from the date it files its application.
§§1.508-1, 1.509(a)-1. (Secs. 508, 509; ’86
Code.)
Rev. Rul. 77-207, 1977-1 C.B. 152.
214.128 Status; untimely notification. A corporation
that states it is a publicly supported charity
when it files its application for recognition of
exemption subsequent to the 15 month deadline
provided by regulation cannot be treated as an
organization described in section 501(c)(3) before
the date it files its application; financial support
received prior to that date may not be used for purposes
of determining whether the organization is
publicly supported. §§1.508–1, 1.509(a)–1. (Secs.
508, 509; ’86 Code.)
Rev. Rul. 77-208, 1977-1 C.B. 153.
214.129 Status after distribution of assets. A
private foundation may terminate its private
foundation status under section 507(b)(1)(A) by
distributing its total net assets to a public charity,
in existence 20 months, formed from the consolidation
of two public charities each of which would
have been in existence for 60 months at the time
of distribution had they not been consolidated.
§1.507-2. (Sec. 507, ’86 Code.)
Rev. Rul. 75-289, 1975-2 C.B. 215.
214.130 Status after termination. A corporation
that remains in existence after terminating its
private foundation status under section
507(b)(1)(A) must, unless specifically excepted
by section 508(c), file an Application for Recognition
of Exemption if it wishes to be treated as an
organization described in section 501(c)(3).
§§1.507-2, 1.508-1, 1.509(c)-1. (Secs. 507, 508,
509; ’86 Code.)
Rev. Rul. 74-490, 1974-2 C.B. 171.
214.131 Status termination; advance ruling;
supporting organization. A private foundation
that has commenced a 60-month termination
period has received an advance ruling that it can
reasonably be expected to satisfy the requirements
of section 507(b)(1)(B)(i) by operating as a public
charity during the period. A private foundation
that supports only such organization and otherwise
qualifies under reg. 1.509(a)-4 may be given
an advance ruling that it can reasonably be
expected to operate as a section 509(a)(3) organization
and satisfy the requirements of section
507(b)(1)(B)(i) during its own 60-month termination
period. §§1.507–2, 1.509(a)–4. (Secs. 507,
509; ’86 Code.)
Rev. Rul. 78-386, 1978-2 C.B. 179.
214.132 Status termination; change in
accounting period. A private foundation that
gave notice that it was terminating its private
foundation status by operating as a public charity
for a 60-month period beginning with the first day
of its next taxable year and that is was changing its
annual accounting period from a calendar to a fiscal
year pursuant to reg. 1.442–1(c)(2) may begin
the 60-month period on the earlier fiscal year date.
§§1.442-1, 1.507-2. (Secs. 442, 507; ’86 Code.)
Rev. Rul. 77-113, 1977-1 C.B. 152.
214.133 Support by foreign government. An
exempt organization organized in a foreign country
and receiving a substantial portion of its support
from a foreign government is not a private
foundation. §1.509(a)-2. (Sec. 509, ’86 Code.)
Rev. Rul. 75-435, 1975-2 C.B. 215.
214.134 Support of foreign organization. An
organization that is organized and operated in support
of a foreign, rather than a domestic, organization
meeting the requirements of section 509(a)(1)
and (a)(2) and that otherwise meets the requirements
of section 509(a)(3) qualifies as an organization
described in that section. §1.509(a)-4.
(Sec. 509, ’86 Code.)
Rev. Rul. 74-229, 1974-1 C.B. 142.
Exempt organizations
214.135 Support requirement; organization
for the benefit of a state university. The substantial
support tests of section 170(b)(1)(A)(vi) also
apply to allow an organization organized and operated
exclusively for the benefit of a state university,
otherwise described in section
170(b)(1)(A)(iv), to meet the substantial support
test of section 170(b)(1)(A)(iv), provided the
sources of support of the organization do not
include support from sources permitted by section
170(b)(1)(A)(vi), but not permitted by section
170(b)(1)(A)(iv). 1.170A-9, 1.509(a)–2. (Secs.
170, 509; ’86 Code.)
Rev. Rul. 82–132, 1982–2 C.B. 107.
214.136 Supporting organization. A newly
created nonprofit organization is to pay its future
income until a specific amount has been paid to
specified organizations described in section
509(a)(1) or (a)(2) that appoint a majority of its
governing body. The organization will dissove after
the specific amount has been paid and will distribute
its assets to such specified organizations that a
contributor named in its articles of organization
selects. The organization is a private foundation
and not a supporting organization. §1.509(a)-4.
(Sec. 509, ’86 Code.)
Rev. Rul. 79-197, 1979-1 C.B. 204.
214.137 Supporting organization; charitable
trust granting scholarships. An exempt charitable
trust whose sole purpose is to grant scholarships
to students graduating from the public high
schools in a city and that is trusteed by the city
council with its funds managed by the city treasurer
is a supporting organization and is not a private
foundation. §1.509(a)-4. (Sec. 509, ’86
Code.)
Rev. Rul. 75–436, 1975-2 C.B. 217.
214.138 Supporting organization; charitable
trust granting scholarships. An exempt charitable
trust whose sole purpose is to grant scholarships
to students graduating from both public and
private high schools in a city and whose trustees
are officers of, or are elected by the membership
of, a local civic league exempt under section
501(c)(4) is a supporting organization and thus not
a private foundation. §1.509(a)-4. (Sec. 509, ’86
Code.)
Rev. Rul. 76-401, 1976-2 C.B. 175.
214.139 Supporting organization; charitable
trust granting scholarships for county students.
An exempt charitable trust established
solely to provide college scholarships to county
high school graduates that is trusteed by an independent
bank trustee is a private foundation and
not a supporting organization. §1.509(a)–4. (Sec.
509, ’86 Code.)
Rev. Rul. 75-437, 1975-2 C.B. 218.
214.140 Supporting organization; community
trust. A community trust described in reg.
1.170A-9(e)(11) that was created by a community
chest to hold permanently endowed charitable
funds and to distribute income to support local
charitable organizations that are public charities is
a supporting organization and is not a private
foundation, even if the publicly supported charities
are not specified by name. §1.509(a)-4. (Sec.
509, ’86 Code.)
Rev. Rul. 81-43, 1981-1 C.B. 350.
214.141 Supporting organization; control of
board by disqualified person. An organization
that is exempt under section 501(c)(3) makes distributions
to a university. The organization is controlled
by a four member board of directors, one of
whom is a substantial contributor to the organization
and a disqualified person. Two other directors
are employees of a corporation, also a disqualified
person, in which more than 35 percent of the voting
power is owned by the substantial contributor.
The remaining director is chosen by the university.
None of the directors has a veto power. The organization
is not a supporting organization within
the meaning of section 509(a)(3). §1.509(a)-4.
(Sec. 509, ’86 Code.)
Rev. Rul. 80-207, 1980-2 C.B. 193.