Opinion ID: 1058895
Heading Depth: 2
Heading Rank: 3

Heading: The Charitable Presumption

Text: The YMCA's articles of incorporation unequivocally reflect its nonprofit, charitable status as a nonstock corporation. Article II(A) mandates that the YMCA shall be operated exclusively for one or more charitable, religious, educational and scientific purposes. Article II(B) then provides: The Young Men's Christian Association we regard as being in its essential genius a worldwide fellowship united by common loyalty to Jesus Christ for the purpose of developing Christian personality and building a Christian society. The mission statement for the corporation is to put Judeo-Christian principles into practice through programs that build healthy body, mind, and spirit for all. (Internal quotation marks omitted). Under the YMCA's charter, it cannot carry on any activities not permitted to be carried on by a corporation exempt from Federal income tax. The YMCA's property is dedicated to charitable purposes even upon dissolution, when all YMCA assets must be distributed to a nonprofit fund which is organized and operated exclusively for charitable purposes and which has established its tax-exempt status under Section 501(c)(3) of the [Internal Revenue] Code. While the YMCA reserves the right to compensate directors or others for their services, the charter specifically states that [n]o part of the net earnings of the corporation shall inure to the benefit of ... its officers [or] directors. The trial court found, and Ola does not dispute, that the charitable purpose and nonprofit structure set out in the YMCA charter established the rebuttable presumption that the YMCA is a charitable organization. We find no error in the trial court's conclusion.