Opinion ID: 2258215
Heading Depth: 2
Heading Rank: 2

Heading: Source of CCCS's Funds

Text: [¶ 12] CCCS also contends that the Board erred by depriving it of a tax exemption because CCCS receives much of its revenue from the fair share contributions of creditors. An organization may not be deprived of the right of exemption by reason of the source from which its funds are derived. 36 M.R.S.A. § 652(1)(A). Contrary to CCCS's contention, however, the Board made clear that it denied CCCS's application not because of the source of its funds, but because its services significantly benefit creditors and because those benefits are not merely incidental to some benevolent and charitable purpose. Although the Board may not base a denial of an exemption on the source of an organization's funds, it may consider, as it properly did here, the ultimate beneficiaries of the organization's services. See 36 M.R.S.A. § 652(1)(C)(1) (Any corporation claiming exemption under paragraph A must be organized and conducted exclusively for benevolent and charitable purposes.) (emphasis added).