Opinion ID: 163334
Heading Depth: 4
Heading Rank: 3

Heading: Quantifying community benefit

Text: 41 Difficulties will inevitably arise in quantifying the required community benefit. The governing statutory language, however, provides some guidance. Under section 501(c)(3), an organization is not entitled to tax exemption unless it operates for a charitable purpose. Thus, the existence of some incidental community benefit is insufficient. Rather, the magnitude of the community benefit conferred must be sufficient to give rise to a strong inference that the organization operates primarily for the purpose of benefitting the community. Geisinger I, 985 F.2d at 1219. 42 Thus, our inquiry turns not [on] the nature of the activity, but [on] the purpose accomplished thereby. 20 Bethel Conservative Mennonite Church v. C.I.R., 746 F.2d 388, 391 (7th Cir.1984) (emphasis added). Of course, because of the inherent difficulty in determining a corporate entity's subjective purpose, we necessarily rely on objective indicia in conducting our analysis. Geisinger I, 985 F.2d at 1215 (citation omitted). In determining an organization's purpose, we primarily consider the manner in which the entity carries on its activities. Living Faith, 950 F.2d at 372 (citing cases). 43