T.C. Mem o. 2 01 6- 22 3

UNITED STAT ES TAX COURT

COMM UNITY EDU CATION FOUNDATION, Pet it io ne r v. COMM ISSI ONER OF INTERNAL REVENUE, Resp on de nt

Doc ke t No . 92 0- 14 X. Fi le d Dec em be r 12 , 20 16
.
D. Dant e Ant ho ny Hay es (anoff ic er), fo r pe ti ti on er. Eli zab eth C . Mo ur ge s, fo r res po nd en t.

MEMORANDUM OPINION ARMEN, Sp eci al Trial Ju dg e: Res po nd en t d et erm in edth atpe ti ti on er, Co m m un ity Edu cat io n F ou nd at io n, n o l on ge r qu al ifi es forex em pt io n fr om

Fed eral in co m e ta x u nd er s ect io n 5 01 (a) a s an org an iz at io n m eet in g the requi rem en ts of- 2 -

[* 2] se ct io n 5 01 (c)( 3)
. Res po nd en t the refo re re vo ke d p et it io ne r’s ta x- ex em pt 1 st atus effe ct iv e Janu ary 1, 2 00 8. Pe ti ti on er ch al le ng edres po nd en t’s d et erm in at io n by tim el y fil in g ape ti ti on with the Co urt fo r a d ecl arat ory jud gm en t p ur su an t t o se ct io n 7 42 8( a). The so le is su e to be de ci de d i s wh ethe r pe ti ti on er o pe rat es ex cl us iv el y

forch ari tabl e p ur

po se s wi th inth e m ean in g o f se ct io n 5 01 (c)( 3)
. Bac kg ro un d The pa rti es subm itte d t o the Co urt the adm in is tra ti ve reco rdup on whi ch
res po nd en t m ad e th e fi na l ad ve rs e d et erm in at io n. Th e p art ie s ag ree t ha t the adm in is tra ti ve reco rdis co m pl et e an d g enui ne . For p ur po se s o f th is pro ceed in g, th e fac ts an d re pr es en ta ti on s i n the adm in is tra ti ve reco rd , as wel l as th os e in th e st ip ul at io n fi le d F eb ru ary 6, 2 01 5, ar e acc ep te d a s tru e an d a re i nc or po rat edhe rei n by thi s re fere nc e. Pet it io ne r was org an iz edas ano np ro fitco rp or at io n u nd er the laws of t he Dis tri ctof C ol um

bi a o n J anua ry

10 , 20 01 . Peti ti on er was in co rp or at edas AB F Edu cat io na l Fo un da ti on , Inc ., bu t s in ce i ts in co rp or at io n h as op erat edun de r th e
na m es Co ng res si on al Edu cat io n F ou nd at io n, Co ng res si on al Edu cat io n F ound at io n fo r Publ ic Po li cy , andm os t re cen tl y Co m m un ity Edu cat io n F ou nd at io n. Unl es s o th erwi se in di cat ed , all sec ti on refe ren ces are t o the Int ern al 1 Rev enue Co de , as a m en de d, an d a ll Ru le refe ren ces are t o the Tax C ou rt Rul es of Prac ti ce an d P ro cedur e.- 3 -

[* 3] Pet it io ne r’s pr in ci pa l o ffi ce o r ag en cy was i n B al ti m or e, Mary land , at the ti m e th atit s p et it io n was fil edwith the Co urt. Pet it io ne r’s so le off ic er, d ire ct or , and rep res en ta ti ve is D. Dant e Ant ho ny Hay es . Acco rd in g t o i ts art ic le s o f in co rp or at io n p et it io ne r is “ or ga ni zed
ex cl us iv el y

forch ari tabl e an d e du cat io na l p ur po se s wi th in th e m ean in g o f §5 01 (c)( 3) of the Int ern al Rev enue Co de of 1 98 6”
. On o r ab ou t Jun e 2 7, 2 00 1, M r. Hay es subm it te d F orm 10 23 , App li cat io n fo r Rec og ni ti on of Ex em

pt io n Un de r Sec ti on 50 1( c)(3 ) of th e In te rn al Rev enue Co de (ap pl ic at io n) . On th e ap pl ic at io n M r. Hay es st at ed : The ABF Edu cat io na l Fo un da ti on , Inc . (th e “ Fo un da ti on ”) i s a co ns erv at iv e res earc h a ndeduc at io na l i ns ti tu te foc us in g o n p ub li c po li cy is su es th atha ve pa rti cu lar im pa cton Afric anAm eri can s, His pa ni c Am eri can s, As ian Am eri can s, Nat iv e Am eri can s, an d he rit ag e g ro up s (the “ Targ etGroups ”). The Fo un da ti on ’s gu id in g pr in ci pl e is to en co ur ag e o pe n i nqui ry ab ou t p ub li c p ol ic y

is su es th at are o f pa rti cu lar in te res t an d e du cat io na l v al ue for th e Targ etGroups an d the publ ic inge ne ral an d t o p ro vi de pro gr am s tha t h ig hl ig htan d educ at e th e Targ etGroups an d the publ ic ab ou t the se ge rm an e subjec ts an d/ orpubl ic po li cy is su es . * * * * * * * To ac hi ev e th is go al , th e Fo un da ti on wil l u nd ert ak e a v ari ety of act iv it ie s, i nc lu di ng : 1. To wn h al l m eet in gs : Th e Fo un da ti on wil l s po ns ora m in im um of twen ty tele vi se d o r no n- te le vi se d t own ha ll m eet in gs on un iv ers ity cam pu se s ac ro ss th e Uni te d S ta te s t o the ge ne ral publ ic , parti cu larly- 4 -

[* 4] m in or it ie s i n the educ at io n p ro fes si on , hea lth c are p ro fes si on , leg al pr of es si on , bu si ne ss an d c iv ic lea de rs , rel ig io us lea de rs , lab orun io n m em be rs , col le ge an d uni ve rs ity stud en ts . Each t own ha ll m eet in g wil l d is cu ss th e ref

orm at io n o f ta x, educ at io n, s oc ia l s ecu rit y , hea lth care , raci al pro fil in g, b us in es s an d e co no m ic de ve lo pm en t. The pu rp os e o f th es e to wn h al l m eet in gs is to he lp th e Am eri canpubl ic , pa rti cu larly min or it ie s, h av e a b et te r un de rs tand in g o f co ns erv at iv e publ ic po li cy

in it ia ti ve s. Th e Fo un da ti on ’s st aff andco ns ul tant s wi ll work t o d ev el op an d c on du ctth es e m on th ly townha ll m eet in gs th at are s ch edul edto st artinSep te m be r 20 01 . This act iv ity

wil l ac co un t fo r ro ug hl y

25 pe rcen t o f th e Fo un da ti on ’s res ou rces an d t im e in an y gi ve n year. 2. Nat io na l wo rk sh op s: The Fo un da ti on wil l s po ns or twen ty nat io na l works ho ps inhi gh sc ho ol au di to riu m s, co ll eg e cam pu se s, co nv en ti on cen te rs , chu rch au di to riu m s an d h ot el s ac ro ss th e Uni te d S ta te s * * *
. The Fo un da ti on ’s st aff andco ns ul tant s wi ll workto de ve lo p a nd or ga ni ze the se nati on al work sh op s tha t ar e sc he du le d t o s tart i n Octo be r 20 01 . This act iv ity wil l ac co un t fo r ro ug hl y 55 pe rcen t o f th e Fo un da ti on ’s res ou rces an d t im e in an y gi ve n year. 3. Co ng res si on al forum s: The Fo un da ti on wil l s po ns orqu art erl y educ at io na l fo ru m s fo r publ ic off ic ia ls , no n- pr of

it s, o pi ni on po ll st ers , bu si ne ss lea de rs an d the m ed iato be tt er u nd ers tandm in or it ie s an d th ei r pe rcep ti on on cert ai n p ub li c p ol ic y in it ia ti ve s tha t i m

pa ctth ei r da il y li ve s. Th e Fo un da ti on ’s st aff wi ll workto de ve lo p andorg an iz e th es e co ng res si on al forum s tha t ar e sc he du le d t o s tart i n No ve m be r 20 01 . This act iv ity

wil l ac co un t fo r ro ug hl y 10 pe rcen t o f th e Fo un da ti on ’s res ou rces an d t im e in an y gi ve n year. 4. Me di a/ Co m

m un ic at io n: As p artof t he Fo un da ti on ’s effo rts to rai se awaren es s an d u nd ers tand in g o f th e co ns erv at iv e p ub li c p ol ic y in it ia ti ve s t o the m in or it ie s an d the ge ne ral publ ic , th e Fo un da ti on wil l co m m un ic at e th es e p ol ic y

in it ia ti ve s ac ro ss th e co un try via bi ll bo ard s, ra di o, t el ev is io ns , etc . The Fo un da ti on st aff and co ns ul tant s wi ll workto de ve lo p the m es sa ge s t o b e adve rti se d. Th is- 5 -

[* 5] act iv ity

wil l ac co un t fo r ro ug hl y 10 pe rcen t o f th e Fo un da ti on ’s res ou rces an d t im e in an y gi ve n year. Pet it io ne r di d n ot , ov er t im e, m ean in gf ul ly org an iz e o r al lo cat e res ou rces to
an y of t he fou r afo rem en ti on edan d e nu m erat edact iv it ie s. On J ul y 23 , 20 01 , res po nd en t g ran te d p et it io ne r ta x- ex em ptst atus un de r se ct io n 5 01 (c)( 3) an d p riv at e fo un da ti on st atus un de r se ct io ns 50 9( a)(1 ) an d 17 0( b) (1 )(A)(v i). On Se pt em

be r 21 , 20 12 , res po nd en t i ss ue d t o p et it io ne r a l et te r pr op os in g t o rev ok e p et it io ne r’s ta x- ex em ptst atus un de r se ct io n 5 01 (c)( 3) , as wel l as a co py of a rep ort re fle ct in g the reas on in g b eh in d the pro po se d re vo cat io n, wh ic h was ba se d
on , in te r al ia , it s fa il ur e “ to est ab li sh th atitm eet s o pe rat io na l t es t re qu ire m en ts
un de r IRC 50 1( c)(3 )”. The l et te r st at edth atif p et it io ne r di sa gr eedwith the 2 fin di ng s i t s ho ul d s ub m ita writ te n p ro te st . On Oct ob er 1 9, 2 01 2, p et it io ne r ti m el y sen t a wri tt enpro te st(pr ot es t) t o the In te rn al Rev enue Serv ic e App eal s Off ic e. Inth e p ro te st , pet it io ne r adm it te d tha t i t
was in act iv e fro m

Sep te m be r 20 01 th ro ug h Dec em be r 20 08 ; h owe ve r, itass ert ed See i nf ra p p. 9 -1 0 fo r a d is cu ss io n o f th e o pe rat io na l t es t. 2 The let te r st at edth at“ba se d o n C EF’s [Co m m un ity Edu cat io n Fo un da ti on ’s] an d M r. Hay es ’ co nt in ue d fa il ur es (in cl ud in g fa il in g t o re sp on d t o su m m on s) to pro vi de an y

m ean in gf

ul ev id en ce o f itha vi ng co nduc te d a ny ch ari tabl e act iv it ie s C EF ha s fa il edto est ab li sh th atitm eet s the op erat io na l t es t requi rem en ts un de r IRC 50 1( c)(3 ).”- 6 -

[* 6] th atittri ed , bu t fa il ed , to ho stva rio us ev en ts in20 09 an d 2 01 0. Thus , acco rd in g t o p et it io ne r, itatt em pt edto org an iz e a “ Pres id en ti al Inaug ur al Bal l” to ho no r ve te ran s (Ve te ran s’ Inaug ur al Bal l) i n 2 00 9, as well as aser ie s o f to wn h al l
m eet in gs an d b en efi t co nc ert s i n 2 01 0, g en eral ly orie nt edto ward s v et eran s. 3 On Oct ob er 2 2, 2 01 3, re sp on de ntis su edto pe ti ti on er a fi na l ad ve rs e de te rm in at io n re vo ki ng it s s ect io n 5 01 (c)( 3) st atus effe ct iv e Janu ary 1, 2 00 8. Res po nd en t d et erm in edth atpe ti ti on er: (1) fai le d t o e st ab li sh th atitwas o pe rat ed
ex cl us iv el y

forex em ptpu rp os es un de r se ct io n 5 01 (c)( 3) an d s ect io n 1.5 01 (c)( 3) -1 (d ), In co m e Tax Reg s.; (2) fai le d t o m ai nt ai n o r pr oduc e an y bo ok s The c irc um st an ces su rro un di ng th e o rg an iz at io n o f su chco nt em pl at ed 3 ev en ts are l es s tha n c le ar al th ou gh th e adm in is tra ti ve reco rdas s ti pu la te d b y th e pa rti es in cl ud es a Mar ch16 , 20 10 , art ic le inth e Arm y Tim es st at in g tha t “ sp on so rs , ent ert ai ne rs an d t ic ke th ol de rs [were l eft ] in th e lu rch ” whe n the Vete ran s’ Inaug ur al Bal l was no t h el d. Th e art ic le furth er s ta te d tha t the Bal ti m or e, Mary land , Depa rtment o f Rec reat io n a ndPark s d idno t h av e a p erm it reque streg ard in g p et it io ne r’s pr om ot io n o f a “ st ar s tu dd edbe ne fitco nc ert ” at Carr ol l Pa rkinBal ti m or e, no r were the featur eden te rta in ers off ic ia ll y sch edul ed to pe rfo rm

at a ny suc h c on cert . Acco rd in g t o p et it io ne r’s ve rs io n o f th e ev en ts , th e Vet eran s’ Inaug ur al Bal l fel l thr ou gh be cau se Mr. Hayes fo un d h is co sp on so r to be m is le ad in g a ndothe r un na m edco sp on so rs “ co ul d n otge t p as t the factth at ” (1 ) “ we were al l Rep ub li can s, s up po rte d P res id en t Geo rg e W. Bu sh , andth e war i n Afg ha ni st an an d Ir aq i [s ic ]” and(2) th e “ CEF [Co m m un ity Edu cat io n F ou nd at io n] form er Pres id en t * * * was i nd ic te d i n C ol or ad o o n i ss ue s re la ti ng to m on ey an d the Kuwai ti Gov ern m en t” . W ith re sp ectto pe ti ti on er’s co nt em pl at edev en ts for

20 10 , itco nt en ds th atitwas n otab le to fin d c or po rat e sp on so rs forth os e ev en ts be cau se of anun fla tt eri ng art ic le inth e Wash in gt on Po st , as wel l as th e March 16 , 20 10 , art ic le inth e Arm

y Tim es .- 7 -

[* 7] orreco rd s s et ti ng forthit s re ve nu e, ex pe ns es , ass et s, an d a ct iv it ie s o r pr og ram s; an d (3 ) adm it te d t o asi gn ifi can t p eri odof i na ct iv ity an d fa il edto de m on st rat e th atiten ga ge d i n a ct iv it ie s fu rth eri ng pu rp os es de sc rib edinsec ti on 50 1( c)(3 ). In aco m

pa ni on fin al adve rs e d et erm in at io n a ls o d at edOcto be r 22 , 20 13 , res po nd en t m od ifi edpe ti ti on er’s p riv at e fo un da ti on st atus “ fro m cl as si fic at io n a s a [ ta x- ex em pt ] publ ic ch ari ty to cl as si fic at io n a s a [ ta xabl e] pr iv at e fo un da ti on effe ct iv e Ja nu ary 1, 2 00 8”
. On J anua ry

15 , 20 14 , pet it io ne r co m m en cedth e in st an t ca se by fili ng a pe ti ti on fora de cl arat ory

jud gm en t. See sec . 74 28 . Sin ce the n, p et it io ne r ha s n ot al way s b eenful ly eng ag edwith thi s ca se or r es po ns iv e to th e Co urt’s o rd ers . Mo strece nt ly, aft er thi s ca se was s ub mit te d o n the ba si s o f th e admin is tra ti ve reco rd , pet it io ne r di d n otfil e a b rie f as di rect edby the Co urt. 4

Whe n apa rty fail s t o fi le a br ie f al to ge th er, s uc h afai lu re h as be enhe ldby 4 th is Co urt t o ju st ify the di sm is sa l o f al l i ss ue s as to whi chth e n on fil in g p arty ha s th e b ur de n o f pr oo f. See Ru le 12 3; Str in ge r v. C omm is si on er, 8 4 T.C. 6 93 (19 85 ), aff’d wi th ou t p ub li sh edop in io n, 7 89 F.2d91 7 (4 thCir . 19 86 ). Neve rth el es s, we ch oo se to ex erci se ou r di sc ret io n n otto do so he re an d i ns te adpro ceedon th e m eri ts .- 8 -

[* 8] Dis cu ss io n A. Declarat ory

Ju dg m en t Ina de cl arat ory

jud gm en t ac ti on bro ug htun de r se ct io n 7 42 8, the
or ga ni zat io n b ears th e b ur de n o f pr ov in g tha t i t i s a s ect io n 5 01 (c)( 3) org an iz at io n. See Rul e 1 42 ; Ra m es es Sch . of Sa n An to ni o, Tex . v. Co m m is si on er, T.C. Mem o. 20 07 -8 5. Di sp os it io n o f anact io n fo r de cl arat ory jud gm en t i nv ol vi ng rev oc at io n
m ay be m ad e o n the ba si s o f th e adm in is tra ti ve reco rdwher e th e p art ie s ag ree t ha t th e rec or d i nc lu de s al l the rel ev an t fa ct s an d tha t tho se fact s ar e n otindi sp ut e. See Rul e 2 17 (a). The p art ie s ag ree tha t the reco rdin cl ud es all rel ev an t fa ct s an d 5 th atth os e fac ts are n otindi sp ut e. B. Whe th er Pe ti ti on er Is Ent it le d To Exem ptSta tu s Tax ex em pt io n i s a m at te r of

leg is la ti ve gra ce, an d a n o rg an iz at io n s eek in g
anex em pt io n m us t p ro ve th atit“ co m es squa rel y withi n the term s o f th e la w co nf erri ng th e b en efi t s ou gh t.” Nel so n v . Comm is si on er, 3 0 T.C. 1 15 1, 1 15 4

In P artne rs inCh ari ty, In c. v. Co m m is si on er, 1 41 T.C. 15 1, 1 63 (20 13 ), th e 5 Co urt s ta te d tha t an ab us e o f di sc ret io n s tand ardap pl ie s wh enrev ie win g the retro act iv ity

of arev oc at io n. Se e al so Cap it al Gym na st ic s B oo st er Cl ub , Inc . v. Co m m is si on er, T.C. Mem o. 2 01 3- 19 3, at*1 6 n .7. Nev erthe le ss , inPartne rs in Ch ari ty, In c. v. Co m

m is si on er, 1 41 T.C. at 1 62 , th e Co urt n ot edth atth e p art ie s im pl ic it ly trie d the cas e und er a d e n ov o s tand ardof r ev ie w andpro ceed ed acco rd in gl y . Sim il arl y , inth e in st an t ca se th e p art ie s i m pl ic it ly pro ceed edun de r a de no vo st an da rdof r ev ie w.- 9 -

[* 9] (19 58 ); s ee al so Fla . Hos p. Tr. Fu ndv. Co m m is si on er, 1 03 T.C. 14 0 (1 99 4) , aff’d, 7 1 F .3d80 8 (1 1t h C ir. 1 99 6)
. Gen eral ly spe ak in g, an org an iz at io n d es cri be d i n s ect io n 5 01 (c)( 3) sh al l b e ex em ptfro m Fed eral in co m e ta x. Se c. 50 1( a). To qua li fy as a n e xe m

pt
or ga ni zat io n u nd er s ect io n 5 01 (c)( 3) , an o rg an iz at io n m us t s at is fy

all of t he requi rem en ts st at edth erei n, s pe ci fic al ly inc lu di ng th e requi rem en ts th atth e co rp or at io n b e b ot h o rg an iz edan d o pe rat edex cl us iv el y foron e o r m or e ex em

pt pu rp os es an d tha t n o p artof t he ne t ea rn in gs inur e to th e b en efi t o f an y pri va te sh areh ol de r orin di vi du al . A fail ur e to sat is fy an y on e o f th e requi rem en ts is fat al to qu al ifi cat io n a ndto co nt inue d e nt it le m en t t o e xe m ptst atus . Col um

bi a Park & Rec reat io n As s’n, In c. v. Co m m is si on er, 8 8 T.C. 1 , 13 (19 87 ), aff’d wi th ou t publ is he d o pi ni on , 83 8 F .2d46 5 (4 th Cir . 19 88 ); s ee s ec. 1 .50 1( c)(3 )-1 (a)( 1) , In co m e Tax Reg s. The pa rti es di sp ut e whe th er p et it io ne r is op erat edex cl us iv el y for ch ari tabl e pu rp os es (op erat io na l t es t). Se e se c. 1.5 01 (c)( 3) -1 (c)( 1) , Inc om e Tax Reg s. An
or ga ni zat io n wi ll sat is fy

th e o pe rat io na l t es t i f iten ga ge s p rimaril y inact iv it ie s th atacco m

pl is h o ne or m or e o f th e ex em ptpu rp os es insec ti on 50 1( c)(3 ). Id. Inap pl y in g the op erat io na l t es t, “ ex cl us iv el y ” d oe s n otm ean“ so le ly” or

“ ab so lu te ly w itho utex cep ti on ”. Nati on al is t M ov em en t v . Comm is si on er, 1 02 T.C.- 10 -

[* 10 ] 55 8, 5 76 (19 94 ) (quo ti ng Chur chinBo st on v. Co m m is si on er, 7 1 T.C. 1 02 , 10 7 (1 97 8) ), aff’d, 3 7 F .3d21 6 (5 th Cir . 19 94 ); s ee al so Co pyrig htCle aran ce Ct r., In c. v. Co m

m is si on er, 7 9 T.C. 7 93 , 80 3- 80 4 (1 98 2) . Non ethe le ss , th e p res en ce o f a si ng le no ne xe m

ptpu rp os e, if

subs tant ia l, p recl ud es ex em ptst atus , reg ard le ss of th e num be r orim po rta nc e o f trul y

ex em ptpu rp os es . Bett er Bu s. Bu reauv. Un it ed St at es , 32 6 U.S. 2 79 , 28 3 (1 94 5) ; Re dl an ds Surg ic al Serv s. v . Comm is si on er, 1 13 T.C. 47 , 71 -7 2 (1 99 9) , aff’d, 2 42 F.3d90 4 (9 th Cir . 20 01 ); Na ti on al is t M ov em en t v. Co m m is si on er, 1 02 T.C. at 5 76 ; Am . Cam pa ig n Aca d. v . Comm is si on er, 9 2 T.C. 10 53 , 10 65 (19 89 ); s ec. 1 .50 1( c)(3 )-1 (c)( 1) , Inc om e Tax Reg s. (“ An
or ga ni zat io n wi ll no t b e so reg ard ed[as op erat edex cl us iv el y foron e o r m or e ex em ptpu rp os es ] if m or e th ananin subs tant ia l p artof i ts act iv it ie s i s n otin furth eran ce o f anex em

ptpu rp os e.”). Exe m ptpu rp os es are tho se sp eci fie d i n s ect io n 5 01 (c)( 3) , su chas r el ig io us , ch ari tabl e, sc ie nt ifi c, an d e du cat io na l p ur po se s. Sec . 1.5 01 (c)( 3) -1 (d )(1 )(i ), In co m e Tax Reg s. Re sp on de ntdo es no t d is pu te th atpe ti ti on er’s p ur po se as ou tl in edinth e ap pl ic at io n a ndit s arti cl es of i nc or po rat io n i s an ex em

ptpu rp os e withi n the m ean in g o f se ct io n 5 01 (c)( 3) . Accor di ng to res po nd en t, h owe ve r, pe ti ti on er d idno t en ga ge inan y act iv ity infurth eran ce o f th atex em ptpurp os e. Furth erm or e, res po nd en t ar gu es th atpe ti ti on er n ev er i nt en de d o n fo ll owi ng- 11 -

[* 11 ] th ro ug h wi th pl an s t o c os po ns orth e Vet eran s’ Inaug ur al Bal l i n J anua ry 20 09 or t o h os t v ari ou s ev en ts pro po se d fo r 20 10 . Ins te ad , res po nd en t co nt en ds th atitwas p et it io ne r’s in te nt io n t o ra is e fu nd s fo r pu rp orte d e ve nt s “ witho ut pr ov id in g the pro m is edbe ne fitev en t” as s ug ge st edinth e March16 , 20 10 , Arm y Tim es art ic le
. Pet it io ne r adm it s tha t i t was in act iv e fro m Sep te m be r 20 01 th ro ug h Decem be r 20 08 bu t co nt en ds th atittri edto ho stev en ts in20 09 an d 2 01 0 tha t fo r va rio us reas on s n ev er o ccurred
. To the ex te ntth atth e p art ie s d is ag ree o ve r why certa in ev en ts co nt em pl at ed by pet it io ne r di d n otm at eri al iz e, th e Co urt n eedno t re so lv e th atdi sp ut e as itis no t rel ev an t t o o urco nc lu si on . Ins te ad , th e Co urt fo cu se s o n p et it io ne r’s ex em pt pu rp os e an d the act iv it ie s tha t i t en ga ge d i n, o r, m or e to th e p oi nt , fai le d t o e ng ag e in , with re sp ectto th atpu rp os e. Acco rd in g t o i ts ap pl ic at io n p et it io ne r in te nd edto furth er i ts ex em pt pu rp os e b y

org an iz in g m on th ly townha ll m eet in gs , 20 na ti on al work sh op s yearly,
an d qua rte rly con gr es si on al forum s i n a dd it io n t o ana ti on wid e m ed iacam pa ig n. The ap pl ic at io n a ll oc at es pe ti ti on er’s t im e an d re so ur ces as f ol lo ws: (1) 25 % to to wn h al l m eet in gs , beg in ni ng Sep te m be r 20 01 ; (2 ) 55 % to nati on al work sh op s, be gi nn in g Oct ob er 2 00 1; (3) 10 % to co ng res si on al forum s, b eg in ni ng Nov em be r- 12 -

[* 12 ] 20 01 ; an d (4 ) 10 % to it s n at io nwi de m ed iacam pa ig n. No tabl y , pet it io ne r di d n otov er t im e m ean in gf ul ly org an iz e o r al lo cat e res ources to an y of t he afo rem en ti on edact iv it ie s. Acco rd in gl y , onth e b as is of t he reco rdbe fo re u s, the Co urt co nc lu de s tha t p et it io ne r fai le d t o s at is fy th e o pe rat io na l t es t b ecau se itdi d
no t en ga ge inan y

act iv ity th atacco m

pl is he d o ne or m or e o f th e ex em ptpu rp os es in sec ti on 50 1( c)(3 ). The C ou rt t he refo re h ol ds th atreg ard le ss of t he ap pl ic ab le st an da rdof r ev ie w, see supr a n ot e 5 , res po nd en t p ro pe rly revo ke d p et it io ne r’s ta x- ex em ptst atus effe ct iv e Ja nu ary 1, 2 00 8, b ecau se itwas n otop erat ed
ex cl us iv el y

foranex em

ptpu rp os e. Acco rd in gl y , th e Co urt n eedno t ad dr es s the ot he r gr ou nd s o n wh ic h re sp on de ntrev ok edpe ti ti on er’s ex em ptst atus . To re fle ctth e fo reg oi ng , Deci si on wil l b e en te red fo r res po nd en t.