Based on information supplied,
and assuming your operations will be as stated in your application for
recognition of exemption, we have determined you are exempt from federal
income tax under section 50l(a) of the Internal Revenue Code as an
organization described in section 50l(c) (3) .
We have further determined that
you are not a private foundation within the meaning of section 509(a) of
the Code, because you are an organization described in sections 509 (a)
(1) and 170 (b) (1) (A) (vi) .
If your sources of support, or
your purposes, character, or method of operation change, please let us
know so we can consider the effect of the change on your exempt status and
foundation status. In the case of an amendment to your organizational
document or bylaws, please send us a copy of the amended document or
bylaws. Also, you should inform us of all changes in your name or
As of January 1, 1984, you
are liable for taxes under the Federal Insurance Contributions Act
(social security taxes) on remuneration of $100 or more you pay to
each of your employees during a calendar year. You are not liable for the
tax imposed under the Federal Unemployment Tax Act (FUTA) .
Since you are not a
private foundation, you are not subject to the excise taxes under
Chapter 42 of the Code. However, if you are involved in an excess
benefit transaction, that transaction might be subject to the excise taxes
of section 4958. Additionally, you are not automatically exempt
from other federal excise taxes. If you have any questions about
excise, employment, or other federal taxes, please contact your key
Grantors and contributors may
rely on this determination unless the Internal Revenue Service publishes
notice to the contrary. However, if you lose your section 509(a) (1)
status, a grantor or contributor may not rely on this determination if he
or she was in part responsible for, or was aware of, the act or failure to
act, or the substantial or material change on the part of the organization
that resulted in your loss of such status, or if he or she acquired
knowledge that the Internal Revenue Service had given notice that you
would no longer be classified as a section 509(a) (1) organization.
Donors may deduct contributions
to you as provided in section 170 of the Code. Bequests, legacies,
devises, transfers, or gifts to you or for your use are deductible for
federal estate and gift tax purposes if they meet the applicable
provisions of Code sections 2055, 2106, and 2522.
Contribution deductions are
allowable to donors only to the extent that their contributions are gifts,
with no consideration received. Ticket purchases and similar payments in
conjunction with fundraising events may not necessarily qualify as
deductible contributions, depending on the circumstances. See Revenue
Ruling 67-246, published in Cumulative Bulletin 1967-2, on page 104, which
sets forth guidelines regarding the deductibility, as charitable
contributions, of payments made by taxpayers for admission to or other
participation in fundraising activities for charity.
In the heading of this letter
we have indicated whether you must file Form 990, Return of Organization
Exempt From Income Tax. If Yes is indicated, you are required to file Form
990 only if your gross receipts each year are normally more than $25,000.
However, if you receive a Form 990 package in the mail, please file the
return even if you do not exceed the gross receipts test. If you are not
required to file, simply attach the label provided, check the box in the
heading to indicate that your annual gross receipts are normally $25,000
or less, and sign the return.
If a return is required, it
must be filed by the 15th day of the fifth month after the end of your
annual accounting period. A penalty of $20 a day is charged when a return
is filed late, unless there is reasonable cause for the delay. However,
the maximum penalty charged cannot exceed $10,000 or 5 percent of your
gross receipts for the year, whichever is less. For organizations with
gross receipts exceeding $1,000,000 in any year, the penalty is $100 per
day per return, unless there is reasonable cause for the delay. The
maximum penalty for an organization with gross receipts exceeding
$1,000,000 shall not exceed $50,000. This penalty may also be charged if a
return is not complete, so be sure your return is complete before you file
You are required to make your
annual information return, Form 990 or Form 990-EZ, available for public
inspection for three years after the later of the due date of the return
or the date the return is filed. You are also required to make available
for public inspection your exemption application, any supporting
documents, and your exemption letter. Copies of these documents are also
required to be provided to any individual upon written or in person
request without charge other than reasonable fees for copying and postage.
You may fulfill this requirement by placing these documents on the
Internet. Penalties may be imposed for failure to comply with these
requirements. Additional information is available in Publication 557,
Tax-Exempt Status for Your Organization, or you may call our toll free
number shown above.
You are not required to file
federal income tax returns unless you are subject to the tax on unrelated
business income under section 511 of the Code. If you are subject to this
tax, you must file an income tax return on Form 990-T, Exempt Organization
Business Income Tax Return. In this letter we are not determining whether
any of your present or proposed activities are unrelated trade or business
as defined in section 513 of the Code.
You need an employer
identification number even if you have no employees. If an employer
identification number was not entered on your application, a number will
be assigned to you and you will be advised of it. Please use that number
on all returns you file and in all correspondence with the Internal
This determination is based on
evidence that your funds are dedicated to the purposes listed in section
50l(c)(3) of the Code. To assure your continued exemption, you should
keep records to show that funds are expended only for those purposes. If
you distribute funds to other organizations, your records should show
whether they are exempt under section 50l(c)(3). In cases where the
recipient organization is not exempt under section 50l(c)(3), there
should be evidence that the funds will remain dedicated to the required
purposes and that they will be used for those purposes by the recipient.
If we have indicated in the
heading of this letter that an addendum applies, the enclosed addendum is
an integral part of this letter.
Because this letter could help
resolve any questions about your exempt status and foundation status, you
should keep it in your permanent records.
If you have any questions,
please contact the person whose name and telephone number are shown in the
heading of this letter.
signed by Lois G. Lerner)
Lois G. Lerner
Letter 947 (DO/CG)