Adrian W. DeWind to NAACP

    - 

WhiTER's DIRECT DIAL MUNBER June 11, 197¢ 

PAUL, WEISS, GOLDBERG. RIFKIND, WHARTON 8 GARRISC 

345 PARK AVENUE NEW YORK, N.Y. (002 

NAACP 

Col 
York, 

stated below, it is our opinion 

that you are a “publicly supported" organization within the 

section 170(b)(1)(A)(vi) of the Internal Revenue 

you are not a "private foundation" for 

Furthermore, contributions to you by 

deductible subject to the "50 percent" limita- 

20 percent limitation) set forth in 

section 170(b)(1) of the Code, and are eligible for carryover 

privileges pursuant to section 170(d)(1) of the Code. In 

addition, contributions to you by private foundations will 

count toward discharging the obligation of such foundations 

under section 4942 of the Code to make an annual minimum amount 

of "qualifying distributions". 

The Treasury Regulations provide that a charitable 

organization, such 



~ 

PAUL /EISS, GOLDBERG, RIFKIND, WHARTON 8 GARRISON 

ted" if it meets suppor 

or a "facts and 

these tests does not include income 

performance of its exempt 

investment or other income received 
function, but dc 

by it. 

Under the mechanical test, an organization will be 

considered to be publicly supported for its current taxable 

year and the following taxable year, if for the four taxable 

years precedi the current taxable year its total support from 

governmental units and from donations from the general public 

equalled one-third or more of the organization's total Support 

during that period. Donations during the four preceding 

taxable years from any one non-governmental contributor or 

roup of such contributors may be counted toward meeting 

this one-third rec only to the extent that the contribu- 

tions from that contributor, or group of contributors, do not 

2/ Reg. § 1.170-2(b)(5) (4144) (a). 

/ I.R.C. of 1954, § 170(b)(1)(A)(vi)s Reg. § 1.170-2(b)(5) (44). 

4/7 Reg. § 1.170-2(b) (5) (441) (b). 



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PAUL. WEISS, GOLDBERG, RIFKIND, WHARTON 8 GARRISON 

=3= June 11, 1970 

exceed one percent of the organization's 

four year period. An organization may 

under the mechanical test only 

so long as there are no substantial changes in the organiza- 

tion's character, or methods of operation. 

" and circumstances" test, an organi- 

deemed publicly supported if it receives substan- 

a “representative number of persons in the 

fe) (el
 erates" (determined in light 

of “whether or not the or, ganization limits its activities to 

can be expected to appeal to a limited 

ry number o its organizational 

ucture a operation, it makes bona fide solicita- 

oport! The proportion of public 

ublie sources to total support necessary 

to qualify as a publicly supported organization under the 

tances" test may be considerably less than 

the proportion necessary to so qualify under the mechanical 

In examples given by the regulations to illustrate 

lication of the "facts and circumstances" test, an art 

which solicited from the general public contributions 

totali $10,000 in each of its four most recent 

same taxable years received investment 



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PAUL. WEISS, GOLDBERG, RIFK ). WHARTON & GARRISON 

3 and 

received $10,000 

ividuals (88.9 

additional $5,000 

"community chest" 

You have furnished us with financial statements and 

a breakdown of your sources of support for each of the years 

This information shows aggregate support 

our-year period of 9,087,310, of which $3,487,386, 

or approximately 38 percent, was derived from contributions 

from individuals of not more than $1,000 each, contributions 

received from "out of town campaigns" of not more than $500 each, 

and net revenue from theatre benefits. 

it is virtually certain 

that you are a publicly s d organizati under the mechan- ° 

ical test for your current taxable year ending December, 1970 

be such for the following year, provided that there 

in your character, purposes or 

methods of operation during those years. However, to determine 

with complete certainty whether you are publicly supported under 

6/ Reg. § 1.170-2(b)(5) (111) (c) (5), examples 3 and 4. 



ARTON 8 GARRISON 

June 11, 1970 

consuming detailed 

rious sources of support. We do not believe 

Sary to undertake such a detailed analysis, 

clear, in our opinion, that you are in any 

vent a publicly supported organization under the "facts and 

the amount of support that you derive 

rom cont from the general public is very substantial, 

and as a percentage of your total support. 

of general support through broad-based 

using mail solicitation, dinners, and receptions, A 

Your current 

a mailing of over 2,000,000 

annually, including mailing to approximately 

who have made contributions to you within the 

preceding 30 months, and mailin s to approximately 1,800,000 

obtained from other mailing lists. 

ht of the foregoing, it is our opinion that you 

ions for broad-based public support," 

at you receive substantial support from "a representative 

number o and that you are a publicly supported 

tion under the "facts and circumstances" test. 



_ 
PAUL. WEISS, GOLDBERG, RIFKIND, Wt g ¥ & GARRISON