Opinion ID: 2074724
Heading Depth: 1
Heading Rank: 2

Heading: the agreed stipulations

Text: [¶ 9] The facts and conclusions stipulated by the parties in the Superior Court form the basis for the Superior Court's ruling in this matter. [2] The Town's brief to us recognizes that this stipulation succinctly summarizes those facts supporting the [d]ecision that are most relevant to this appeal. Although fact-findings are normally reviewed deferentially, we review de novo for errors of law when the parties stipulate or do not dispute the factual findings. Trask v. Devlin, 2002 ME 10, ¶ 14, 788 A.2d 179, 182. [¶ 10] The findings and conclusions of the York County Commissioners that the parties agree should be considered on this appeal indicated that: 1. CFRC was exempt from income taxation as a non-profit corporation engaged in the ministry. 2. The raw land of the property was used for retreat/renewal by affiliated religious organizations. 3. CFRC charged a nominal rate for use of the facility. 4. The persons using the caretaker's cottage are responsible for security and maintenance of the property, meal preparation for groups using the property, and collection and distribution of donated foods. 5. While CFRC provides a public benefit by distributing food to the needy, the property at issue is not used for this purpose, therefore negating the requirement of quid pro quo. 6. CFRC's purposes, including service for religious activities did not meet the prerequisite for exemption requiring use solely for exempt purposes. 7. CFRC failed to demonstrate that it provides a significant public benefit or a service that government would otherwise provide. 8. CFRC failed to demonstrate that its organization and the uses of its real estate was solely for charitable and benevolent purposes. [¶ 11] After recounting the history of CFRC's acquisition of the property, its taxation and applications for abatement, the stipulations adopted by CFRC and the Town stated as follows: 5. According to both its Articles of Incorporation and By-laws, CFRC's purposes are limited to providing religious, charitable and/or educational services within the meaning of § 501(c)(3) of the Internal Revenue Code of the United States. [3] CFRC was exempt from federal income taxation under Title 26 U.S.C. § 501(c)(3) in 1996, and had been since March of 1989. 6. More specifically, in 1996 CFRC's purpose and reason for existence was to help fundamentalist, bible-believing churches and individuals both physically and spiritually, including but not limited to pastors and church members. It did this in two ways. First, it existed to provide food to needy families in northern York County. In 1996 it distributed food to needy families which CFRC estimated was worth $300,000.00 (retail value). And second, in 1996 CFRC existed to provide support to churches, church groups, religious organizations, pastors, and church members by making its real estate and facilities available to them for low rates. 7. In 1996 CFRC advertised that its real estate and facilities were available to: ... all fundamental, evangelistic, Bible-believing churches and individuals for Christian-related activities. CFRC would consider allowing other Judeo-Christian groups to use its facilities as well, but none have used the facilities. 8. In 1996 CFRC used its main center building only in connection with its two purposes. It brought food to a room in that building from grocery stores, repackaged the food, and then distributed it to needy families. It also rented that building to numerous churches, church groups, religious organizations, and pastors. 9. In 1996, CFRC charged groups $6.00 per person per night's lodging, and $10.00 per person for three meals a day. If individuals could not afford to pay these rates, CFRC let those individuals come for free. The fees charged by CFRC did not cover its expenses ... which meant that CFRC had to rely upon charitable donations to meet the remainder of its expenses. 10. CFRC's gross revenues in 1996 were $28,191.50 ... $13,020.47 of which came from charitable donations; $14,726.90 of which came from renting its facilities to churches, church-related groups, religious organizations, and pastors; and the remaining $444.13 from miscellaneous sources connected with the rental of its facilities to those churches and groups. 11. In 1996 CFRC had business expenses and deductions totaling $32,587.57 ... meaning that it had a net loss that year of $4,396.07. 12. Some groups that used CFRC's main center building also used the rest of its land. In the warmer months, these groups would use the beach, play ball on the ball field, and hike and camp all around the grounds. During the winter months the groups would ice skate on the pond, and cross country ski and snowmobile throughout the grounds. In 1996, CFRC's 88 acres of land were used for no other purpose, other than by these groups. 13. In 1996 CFRC allowed a minister and his family to live in the farmhouse free of charge. In addition, the farmhouse was used for over flow lodging when there were not enough beds in the main center building to lodge an entire group. The farmhouse was used for no other purposes in 1996. 14. In 1996 the caretaker's house was inhabited by ... the caretakers for CFRC. [The caretakers] kept an eye on the property and facilities to keep them from being vandalized. In addition, they were in charge of maintaining the property, and cooking and cleaning for groups that used the center. [They] did not pay any rent to live in the caretaker's house, and were not paid any compensation for serving as the caretakers. 15. According to the CFRC's by-laws, its directors are referred to as Directors of the Ministry and must be Christians. 16. Each group using the Center's facilities is responsible for its own program, schedule and activities apart from meals and housing. 17. Some of the activities that the Center makes its facilities available for include: conventions, conferences, seminars, and anniversaries, family reunions, family vacations, baby showers, and bridal showers.