IRS denies § 501(c)(3) exemption to a church-affiliated lending institution

Plain-English summary

The IRS issued a final adverse determination to an organization formed by members of several churches to provide loans and investment opportunities to church members. The organization argued that its lending and investment activities advanced religious principles and mutual aid. The IRS concluded that the organization failed the organizational test because its governing documents authorized investment and borrowing activities rather than only exempt purposes. It also failed the operational test because it operated a lending business resembling commercial lenders, primarily benefited a restricted group of investors and borrowers, and had substantial nonexempt purposes. The organization therefore did not qualify for exemption under IRC § 501(c)(3), and the IRS stated that donors could not deduct contributions under § 170.

Ruling snapshot

• Question: Does a church-affiliated lending institution qualify for exemption under IRC § 501(c)(3)?
• Outcome: denied
• Key authorities: IRC § 501(c)(3), § 170, § 6104(c), § 6110, and § 7428; Treas. Reg. § 1.501(c)(3)-1(a), (b), (c), and (d).

Full text (IRS public release)

DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
WASHINGTON, D.C. 20224

TAX EXEMPT AND
GOVERNMENT ENTITIES
DIVISION

Release Number: 201051024 Contact Person:
Release Date: 12/23/10

Date: September 27, 2010 Identification Number:

UIL Code: 512.00-00
Contact Number:

Employer Identification Number:
Form Required To Be Filed:

Tax Years:
All Years

This is our final determination that you do not qualify for exemption from Federal income tax as
an organization described in Internal Revenue Code section 501(c)(3). Recently, we sent you a
letter in response to your application that proposed an adverse determination. The letter
explained the facts, law and rationale, and gave you 30 days to file a protest. Since we did not
receive a protest within the requisite 30 days, the proposed adverse determination is now final.

Because you do not qualify for exemption as an organization described in Code section
501(c)(3), donors may not deduct contributions to you under Code section 170. You must file
Federal income tax returns on the form and for the years listed above within 30 days of this
letter, unless you request an extension of time to file. File the returns in accordance with their
instructions, and do not send them to this office. Failure to file the returns timely may result in a
penalty.

We will make this letter and our proposed adverse determination letter available for public
inspection under Code section 6110, after deleting certain identifying information. If you disagree
with our proposed deletions, follow the instructions in Notice 437 and review the two attached
letters that show our proposed deletions. If you agree with our deletions, you do not need to take
any further action.

In accordance with Code section 6104(c), we will notify the appropriate State officials of our
determination by sending them a copy of this final letter and the proposed adverse letter. You
should contact your State officials if you have any questions about how this determination may
affect your State responsibilities and requirements.

If you have any questions about this letter, please contact the person whose name and
telephone number are shown in the heading of this letter. If you have any questions about your
Federal income tax status and responsibilities, please contact IRS Customer Service at
1-800-829-1040 or the IRS Customer Service number for businesses, 1-800-829-4933. The
IRS Customer Service number for people with hearing impairments is 1-800-829-4059.

Sincerely,

Robert Choi
Director, Exempt Organizations
Rulings & Agreements

Enclosure
Notice 437
Redacted Proposed Adverse Determination Letter
Redacted Final Adverse Determination Letter

DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
WASHINGTON, D.C. 20224

TAX EXEMPT AND
GOVERNMENT ENTITIES
DIVISION

Date: July 9, 2010 Contact Person:
UIL Code: 512.00-00 Identification Number:
Contact Number:
FAX Number:
Employer Identification Number:

M =
N =
x =

Dear

We have considered your application for recognition of exemption from Federal income
tax under Internal Revenue Code section 501(a). Based on the information provided,
we have concluded that you do not qualify for exemption under Code section 501(c)(3).
The basis for our conclusion is set forth below.

FACTS:

You were incorporated under the nonprofit laws of the state of M on x. According to
your Articles of Incorporation your purpose is to advance the religious beliefs, cultural
traditions and lifestyles of four N churches (the “churches”) by providing loans and other
assistance for real estate purchases and other farm and business related purchases to
members of the churches; to encourage savings and thrift and continue to be committed
to Christian principles of operation by providing investment and borrowing opportunities
to enhance economic social and spiritual well being of the N Brotherhood; and to
operate exclusively for charitable, religious or educational purposes.

You are governed by a seven-member board which was selected from the membership
of the churches. Nominees for vacant positions on your board will be selected by your
existing board members and elected by your investors.

You will operate as a nondepository financial institution which provides loans but will not
operate savings accounts or other depository accounts.

You were formed primarily to offer low interest loans to eligible individuals and
organizations and to provide investment opportunities to eligible individuals.

You will limit eligibility for loans to the members of the churches, organizations whose
principals are such persons and nonprofit organizations that draw substantial support
from among members of the churches. The total membership of the churches is
approximately. You state that you do not target a specific group of people within
the churches, such as the needy.

Potential borrowers will submit a loan application as well as a loan worksheet. The loan
application requires, among other things, a list of the assets and liabilities of the
potential borrower and a statement describing what the loan will be used for and how it
will be repaid. The monthly payment with respect to loans cannot exceed 1/3 of a
borrower's monthly income. Loans will be limited to % of the collateral provided. You
will hold title to collateral until the loan is paid in full. The interest rate on loans is the
Wall Street Journal prime rate minus %. Interest rates are adjusted quarterly. Loans will
be amortized up to 20 years for real estate, up to 10 years for business loans and up
to 5 years for operating loans. No borrower may borrow more than % of your
assets. In addition to servicing the loans you make, you will review and service “pass-
through” loans, loans between individual members of the churches.

Loan applications will be reviewed by a three-person credit committee. Credit decisions
will be based on the committee's assessment of a borrower's ability and willingness to
repay and any arrangements made for additional accountability. You state that
although the majority of the loans you make will use standard measures of
creditworthiness, loans may also be available to individuals who agree to allow a
three-man committee to assist them with financial management decisions. Such loans
will be made on a case-by-case basis. You state that you do not anticipate making
loans to members of your governing board.

You indicate that you will make approximately 20 to 30 loans annually. In response to
Item 6. of our letter dated November , 20 concerning the number of individuals
eligible to apply for loans annually you state, “Members of served churches,
approximately 400. If [your] operations are successful within the initially served
churches and the served population is broadened to other churches in M, this could
expand substantially in the future.”

Investors are limited to residents of M who are members of the churches. Eligible
individuals meeting the minimum-investment requirement ($10,000), up to a maximum
of 25 new investors annually (to comply with the requirements for exemption from the
security laws of the state of M), will be accepted on a first-come, first-serve basis. No
investor may provide more than % of your total assets. The interest rate on
investments is the Wall Street Journal prime rate minus %. Interest rates are
adjusted quarterly. Interest payments are made semi-annually.

You state that both your lending and borrowing activities will support your exempt
purpose of advancing the religious beliefs, cultural traditions and lifestyles of the
churches. You represent that central to your religious doctrine is a belief (i) in Biblical
financial truths, including brotherly financial aid, responsibility for stability in family
finances, the collective responsibility for all members of the church for each other's well
being and personal stewardship and (ii) that deacons of your churches are called by
God to oversee, and where applicable, alleviate the financial hardship of their church's
members. You state that all of these principles lead to the rejection of laws that permit
or facilitate the avoidance of responsibility, such as bankruptcy and insolvency laws.
You represent that many secular investment opportunities such as insured savings
plans and annuities provide forms of insurance which conflict with some church
members’ perception of what their faith requires of them. By providing investment and
lending opportunities, you indicate that you will allow church members to avoid
insurance provided with certain investment opportunities and to avoid the requirements
to obtain commercial fire insurance, life insurance, etc. when borrowing funds.

You currently have no educational activities. You indicate that, in the future, you plan to
lend and sell material which helps people live from contentment rather than defining
themselves by their material acquisitions and to recognize God as the true owner of all
resources. You may also offer classes progressing through a financial management
series and a course emphasizing a Christian ethic of business and money. These
activities will constitute an insubstantial part of your overall activities.

Although you were initially funded by contributions from founding board members and
received a church offering from each of the churches, you do not plan to engage in
further fundraising activities. Your primary method of raising capital will be interest
bearing loans from investors. Your sole source of income will be interest charged to
borrowers. You plan to use the spread between the interest rates paid to investors and
those charged to borrowers to pay all necessary future expenses.

In support of your position that you qualify for exemption, you cite Rev. Ruls. 65-299,
1965-2 C.B. 165, 74-575, 1974-2 C.B. 161, 75-282, 1975-2 C.B. 201, 75-343, 1975-2
C.B. 205 and 79-359, 1979-2 C.B. 226. Further you cite World Family Corp. v.
Commissioner (World Family Corp.), 81 T.C. 958, 963 (1983).

LAW:

Section 501(c)(3) of the Code provides, in part, for exemption from federal income tax of
organizations organized and operated exclusively for charitable, religious or educational
purposes, provided no part of the net earnings of which inures to the benefit of any
private shareholder or individual.

Section 1.501(c)(3)-1(a)(1) of the Income Tax Regulations provides that in order to be
exempt as an organization described in section 501(c)(3), an organization must be both
organized and operated exclusively for one or more purposes specified in such section.
If an organization fails to meet either the organizational test or the operational test, it is
not exempt.

Section 1.501(c)(3)-1(b) of the regulations provides that to meet the organizational test
an organization must meet three sets of requirements. First, its articles of organization
must (a) limit its purposes to one or more exempt purpose and (b) not expressly permit
substantial activities that do not further those exempt purposes. Second, its articles
must not expressly permit (a) substantial lobbying, (b) any participation in the campaign
of a candidate for public office, and (c) objectives and activities that would characterize
it as an "action" organization. Third, its assets must be irrevocably dedicated to exempt
purposes.

Section 1.501(c)(3)-1(c)(1) of the regulations provides that an organization will be
regarded as “operated exclusively” for one or more exempt purposes only if it engages
primarily in activities which accomplish one or more of such exempt purposes specified
in section 501(c)(3) of the Code. An organization will not be so regarded if more than
an insubstantial part of its activities is not in furtherance of an exempt purpose.

Section 1.501(c)(3)-1(c)(2) of the regulations provides that an organization is not
operated exclusively for one or more exempt purposes if its net earnings inure in whole
or in part to the benefit of private shareholders or individuals. Section 1.501(a)-1(c) of
the regulations defines private shareholder or individual as a person having a personal
and private interest in the activities of the organization.

Section 1.501(c)(3)-1(d)(1)(ii) of the regulations provides that an organization is not
organized or operated exclusively for exempt purposes unless it serves a public rather
than a private interest. Therefore, to meet the requirement of this subsection, it is
necessary for an organization to establish that it is not organized or operated for the
benefit of private interests, such as designated individuals, the creator or his family,
shareholders of the organization, or persons controlled, directly or indirectly, by such
private interests.

Section 1.501(c)(3)-1(d)(2) of the regulations provides that the term “charitable” is used
in section 501(c)(3) of the Code in its generally accepted legal sense and includes the
relief of the poor and distressed or of the underprivileged; advancement of religion;
and, advancement of education or science.

Rev. Rul. 69-175, 1969-1 C.B. 149, held that a nonprofit organization, formed by
parents of pupils attending a private school, that provides school bus transportation for
its members' children, serves a private rather than a public interest and does not qualify
for exemption under section 501(c)(3) of the Code. When a group of individuals
associate to provide a cooperative service for themselves, they are serving a private
interest. The organization enables the participating parents to fulfill their individual
responsibility of transporting their children to school. Thus, the organization serves a
private rather than a public interest. Accordingly, it is not exempt from federal income
tax under section 501(c)(3).

Rev. Rul. 70-186, 1970-1 C.B. 128, describes an organization formed to preserve a lake
as a public recreational facility and to improve the condition of the water in the lake to
enhance its recreational features. Although the organization clearly benefited the
public, there necessarily was also significant benefit to the private individuals who
owned lake front property. The revenue ruling held that the private benefit was
incidental to the accomplishment of the organization's exempt purpose. The benefits to
be derived from the organization's activities flowed principally to the public. In fact, it
would be impossible for the organization to accomplish its purposes without providing
benefits to the lake front property owners.

In contrast, Rev. Rul. 75-286, 1975-2 C.B. 210, describes an organization formed by the
residents of a city block to preserve and beautify that block. Its activities consist of
paying the city government to plant trees on public property within the block, organizing
residents to pick up litter and refuse in the public streets and on public sidewalks within
the block, and encouraging residents to take an active part in beautifying the block by
placing shrubbery in public areas within the block. Membership in the organization is
restricted to residents of the block and those owning property or operating businesses
there. The revenue ruling concluded that the organization did not qualify for exemption
under section 501(c)(3) because it operated to serve private interests by enhancing
members' property rights.

Rev. Rul. 72-369, 1972-2 C.B. 245, held that an organization formed to provide
managerial and consulting services at cost to unrelated exempt organizations did not
qualify for exemption under section 501(c)(3) of the Code. Providing managerial and
consulting services on a regular basis for a fee is a trade or business ordinarily carried
on for profit.

In Bethel Conservative Mennonite Church v. Commissioner, 746 F.2d 388 (7th Cir. 1984),
nonacq. AOD CC-1986-004, the court held that the church's medical aid plan, funded by
contributions and available to all members of the congregation in good standing and
their dependents, furthered the religious purposes of the organization.

In Mutual Aid Association of Church of the Brethren v. U.S., 759 F.2d 792 (10th Cir. 1985),
the Court of Appeals held that an organization providing property and casualty insurance
for members of the Church of the Brethren on the basis of assessed premiums is not
primarily engaged in the promotion of the social welfare for exemption under section
501(c)(4) of the Code. The organization argued that its activities advance the religious
principles of the Church of the Brethren and that it carries out only the historical and
doctrinal practice of mutual aid, a practice fundamental to the concepts of the Brethren
Church. The court addressed this contention thus, “Certainly MAA was formed and
promoted by church members and limits its policy sales to church members. But MAA
does not give succor to souls; it sells insurance coverage.” The court concluded that the
presence of a substantial non-exempt purpose, insurance for its members in return for
premiums, precluded the organization's exempt status.

In American Association of Christian Schools Voluntary Employees Beneficiary
Association Welfare Plan Trust v. U.S., 850 F.2d 1510 (11th Cir. 1988), the American
Association of Christian Schools, Inc., a tax-exempt association of churches, formed a
trust to provide health, hospital, disability, life, accidental death and dismemberment,
dental and prescription drug insurance to employees of members’ schools and their
dependents and beneficiaries. Citing Mutual Aid, supra., the Court of Appeals concluded
that the Trust was not exempt under section 501(c)(3) because it was not operated
exclusively for religious purposes; it had a substantial private, non-exempt purpose of
providing insurance protection to participating employees.

Living Faith, Inc. v. Commissioner, 950 F.2d 365 (7th Cir. 1991), involved an
organization established by the Seventh-day Adventist Church to carry out religious
purposes in keeping with the doctrines of the Seventh-day Adventist Church, including
its “health ministry” through operation of two vegetarian restaurants and health food
stores. The Court of Appeals sustained the Service's denial of tax exemption under
section 501(c)(3) of the Code because the organization was operated for a substantial
non-exempt commercial purpose. The court found that the organization's activities were
“presumptively commercial” because the organization was in competition with other
restaurants, engaged in marketing and generally operated in a manner similar to
commercial businesses.

In B.S.W. Group, Inc. v. Commissioner of Internal Revenue, 70 T.C. 352 (1978),
the Tax Court held that an organization did not qualify for exemption under section
501(c)(3) of the Code because it was primarily engaged in an activity that was
characteristic of a trade or business and ordinarily carried on by for-profit
commercial businesses. The Tax Court stated, "We must agree with the Commissioner
that petitioner's activity constitutes the conduct of a consulting business of the sort
which is ordinarily carried on by commercial ventures organized for profit...".

In Better Business Bureau of Washington D.C. Inc. v. United States, 326 U.S. 279, 66
S. Ct. 112, 90 L. Ed. 67, 1945 C.B. 375 (1945), the Supreme Court held that the presence
of a single non-exempt purpose, if substantial in nature, will destroy the exemption
regardless of the number or importance of truly exempt purposes. The Court found that
the trade association had an "underlying commercial motive" that distinguished its
educational program from that carried out by a university.

ANALYSIS:

Organizational Test:

Section 1.501(c)(3)-1(b) of the regulations provides in part that to meet the
organizational test an organization's articles of organization must limit its purposes to
one or more exempt purposes.

Articles 4(a) and (b) of your Articles of Incorporation states that you were formed to
provide investment and borrowing opportunities. Providing investment and borrowing
opportunities to members is not an exempt purpose described in section 501(c)(3).
Accordingly, you do not meet the organizational test described in section 1.501(c)(3)-
1(b) of the regulations.

Operational Test:

Operation of a Trade or Business:

Section 1.501(c)(3)-1(c)(1) of the regulations provides that an organization will be
regarded as “operated exclusively” for one or more exempt purposes only if it engages
primarily in activities which accomplish one or more of such exempt purposes specified
in section 501(c)(3) of the Code. An organization will not be so regarded if more than
an insubstantial part of its activities is not in furtherance of an exempt purpose.

Your primary purpose is to operate a trade or business, a lending institution which
directly competes with commercial lending institutions. Your business practices are
consistent with those of the industry in general. You will be funded by capital from
investors. Your method of determining fees is similar to the method used by
commercial lending institutions. The interest on your loans will be set at a level
sufficient to cover your operating costs. Borrowers must provide financial information
evidencing that they are creditworthy and have the financial means to repay the loans.
The loans may not exceed 80% of collateral provided. The interest rates, payment
periods and length of the loans are substantially similar to those of commercial lending
institutions. Your sources of support will be limited to interest from loans and service
fees for managing loans directly between members. You have no plans to solicit
contributions in the future. You represent that, if successful, you plan to expand your
operations substantially.

In Bethel Conservative Mennonite Church, supra., the court held that the church's
medical aid plan, which was funded by contributions rather than premiums, furthered
the religious purposes of the organization. However, as noted above, the Service has
indicated that it will not follow the Court's decision. In any event, your activities are
distinguishable from those of Bethel Conservative Mennonite Church since you are
funded by income generated by your operation of a trade or business rather than by
voluntary contributions.

The Eleventh Circuit held in American Association, supra., a trust formed to provide
insurance to employees of members' schools was not exempt under section 501(c)(3)
because it was not operated exclusively for religious purposes; it had a substantial
private, non-exempt purpose of providing insurance protection to participating
employees. See also, Mutual Aid Association, supra., in which the Tenth Circuit upheld
the Service's denial of section 501(c)(4) status to an organization providing the
equivalent of property insurance protection available only to members of the church. In
Mutual Aid Association the organization argued that the provision of mutual aid was
fundamental to the concepts of the church. Like the organizations described in
American Association and Mutual Aid Association, although you were created with
religious principles in mind, your primary purpose is the operation of a trade or
business. See also Living Faith, Inc., B.S.W. Group, and Rev. Rul. 72-369, all supra.

Precedents you cited in support of your position:

In support of your position that you qualify for exemption, you cite Rev. Ruls. 65-299,
74-575, 75-282, 75-343 and 79-359, all supra. These revenue rulings are not relevant.

Rev. Rul. 65-299, supra., concerned exemption under section 501(c)(4). The
organization promoted social welfare by educating and assisting consumers with credit
problems. You are not seeking exemption under section 501(c)(4). Even if you were,
unlike the organization described in the revenue ruling, your primary purpose is not
educational. Further, the revenue ruling specifically states that no loans were made to
the individuals seeking assistance. Your primary purpose is to make loans to
individuals.

Rev. Rul. 75-282, supra., concerned an organization formed to make loans to a
conference of churches. The basis for that ruling was that the organization operated as
an integral part of the conference of churches and making loans to member churches to
build church facilities furthered the exempt purposes of the conference of churches.
You make loans to individuals, not churches. Further, rather than being used to build
church facilities, your loans are for the personal use of the church members.

Rev. Rul. 75-343, supra., concerned the provisions of section 3122 of the Federal
Insurance Contributions Act. Thus, it is not relevant to your situation.

Although Rev. Ruls. 74-575 and 79-359 refer to religious purposes with respect to
supervision and inspection of commercially prepared food and burial services,
respectively, the court cases cited above, American Association, Mutual Aid
Association, Living Faith, Inc. and B.S.W. Group, all supra., are more recent and more
relevant to your operations.

In I.R.B. 1985-1, 5., the Service issued a notice of its nonacquiescence with respect to
World Family Corp., supra. In any event, you do not operate in a manner similar to the
organization described in World Family Corp. The organization in World Family Corp.
made grants and interest-free loans to missionaries. Unlike that organization, you are
making interest-bearing loans to individuals to build homes or support the businesses
they operate.

Substantial Private Benefit:

Section 1.501(c)(3)-1(d)(1)(ii) of the regulations provides that an organization is not
organized or operated exclusively for exempt purposes unless it serves a public rather
than a private interest. Therefore, to meet the requirements of this subsection, it is
necessary for an organization to establish that it is not organized or operated for the
benefit of private interests, such as designated individuals, the creator or his family,
shareholders of the organization, or persons controlled, directly or indirectly, by such
private interests.

You were formed to operate a lending institution. The investment opportunities with
respect to the institution are limited to members of the churches. Loans will be made
solely to church members, organizations whose principals are church members and to
nonprofit organizations that draw substantial support from among church members.

Like the organizations described in Rev. Rul. 69-175, supra. and Rev. Rul. 75-286,
supra., which benefited specific individuals rather than the public, your operation of a
lending institution providing investment opportunities and loans to church members
serves a private rather than a public interest. Unlike the organization described in Rev.
Rul. 70-186, supra., formed to preserve a lake as a public recreational facility, you were
formed primarily to benefit your investors and borrowers.

Substantial Non-exempt Purpose:

Qualification for exemption under section 501(c)(3) of the Code requires, inter alia, that
an organization operate exclusively for exempt purposes. Exclusivity with respect to
section 501(c)(3) does not mean “solely” or “without exception,” but rather contemplates
that any non-exempt activities be only incidental and less than substantial. See section
1.501(c)(3)-1(c)(1) of the regulations.

This requirement is affirmed in Better Business Bureau, Inc., supra., where the court
held that the presence of a single non-exempt purpose, if substantial in nature, will
preclude exemption regardless of the number or importance of truly exempt purposes.
Thus, if an organization engages in a substantial non-exempt activity, it does not meet
the operational test of section 501(c)(3) of the Code, regardless of how substantial its
religious or other exempt activities are.

10

We have concluded that you are not operated exclusively to promote religion under
section 501(c)(3) of the Code, or to further any other tax-exempt purpose within the
meaning of section 501(c)(3) and section 1.501(c)(3)-1(d) of the regulations. You were
formed primarily for the non-exempt purpose of operating a lending institution, a trade or
business of the type ordinarily carried on for profit. Further, your activities result in a
substantial private benefit to your investors and borrowers.

CONCLUSION:

Because you are neither organized nor operated exclusively for exempt purposes, you
do not qualify for exemption under section 501(c)(3) of the Code.

You have the right to file a protest if you believe this determination is incorrect. To
protest, you must submit a statement of your views and fully explain your reasoning.
You must submit the statement, signed by one of your officers, within 30 days from the
date of this letter. We will consider your statement and decide if the information affects
our determination.

Your protest statement should be accompanied by the following declaration:

Under penalties of perjury, I declare that I have examined this protest statement,
including accompanying documents, and, to the best of my knowledge and belief,
the statement contains all the relevant facts, and such facts are true, correct, and
complete.

You also have a right to request a conference to discuss your protest. This request
should be made when you file your protest statement. An attorney, certified public
accountant, or an individual enrolled to practice before the Internal Revenue Service
may represent you. If you want representation during the conference procedures, you
must file a proper power of attorney, Form 2848, Power of Attorney and Declaration of
Representative, if you have not already done so. For more information about
representation, see Publication 947, Practice before the IRS and Power of Attorney. All
forms and publications mentioned in this letter can be found at www.irs.gov, Forms and
Publications.

If you do not file a protest within 30 days, you will not be able to file a suit for declaratory
judgment in court because the Internal Revenue Service (IRS) will consider the failure
to protest as a failure to exhaust available administrative remedies. Code section
7428(b)(2) provides, in part, that a declaratory judgment or decree shall not be issued in
any proceeding unless the Tax Court, the United States Court of Federal Claims, or the
District Court of the United States for the District of Columbia determines that the
organization involved has exhausted all of the administrative remedies available to it
within the IRS.

11

If you do not intend to protest this determination, you do not need to take any further
action. If we do not hear from you within 30 days, we will issue a final adverse
determination letter. That letter will provide information about filing tax returns and other
matters.

Please send your protest statement, Form 2848 and any supporting documents to this
address:

You may also fax your statement using the fax number shown in the heading of this
letter. If you fax your statement, please call the person identified in the heading of this
letter to confirm that he or she received your fax.

If you have any questions, please contact the person whose name and telephone
number are shown in the heading of this letter.

Sincerely,

Robert Choi
Director, Exempt Organizations
Rulings & Agreements