its net earnings could inure to the benefit of any stockholder or individual. Under the common law,

income of a charity could not inure to the benefit person. See 4A Scott, The Law of Trusts $ 376 (2d Thus, the inclusion of a requirement to that effec statute would have been unnecessary if Congress ha to condition tax exemption on satisfying the requi common law charity.

The conclusion that Congress did not intend t the common law of charitable trusts into the exemp supported by the Service's contemporaneous constru early revenue acts. In a ruling issued in 1921, t stated that charitable trusts were not exempt from under the predecessor provisions of Section 501(c) in the Revenue Acts of 1913, 1916 and 1918. A.R.M 262 (1921). This position was also advanced in th promulgated under the Revenue Act of 1918. Treas. Art. 517 (Revenue Act of 1918).

viously discussed, supra at 16-19, in 1923 the Servic the word "charitable" in Section 231(6) of the

"

of 1918 and 1921 in its "popular and ordinary sense' relief of the poor," rather than in its broader commo

mption from taxation contained in the Revenue Act
ined unchanged in the Revenue Acts of 1924, 1926,
2, 10/ and regulations issued by the Service under
ontinued to define the term "charitable" to mean

he poor."

Treas. Reg. 65, Art. 517 (Revenue Act of

porations organized and operated exclusively for

Act of 1924, ch 176, S 231(6), 43 Stat. 253; Revenue ch. 20, $ 231(6), 44 Stat. 9; Revenue Act of 1928, 03(6), 45 Stat. 791; Revenue Act of 1932, ch. 154, Stat. 169.

tions to qualify as common law charities in order to

from taxation.

(2d ed. 1956).

See 4A Scott, The Law of Trusts $ 37

The Revenue Act of 1936, ch. 740, S 101(6), 49

and the Revenue Act of 1938, ch. 554, § 101(6), 52 S also carried forward the same exemption, and the reg promulgated under these Acts continued to define the "charitable" as "relief of the poor." See Treas. Re Art. 101(6)-1 (Revenue Act of 1934); Treas. Reg. 94, (Revenue Act of 1936); Treas. Reg. 101, Art. 101(6)Act of 1938).

11/ Treas. Reg. 69, Art. 517 (Revenue Act of 1926); 74, Art. 527 (Revenue Act of 1928); Treas. Reg. 77, (Revenue Act of 1932).

In the Internal Revenue Code of 1939, ch. 1, 53 Stat ("1939 Code"), Congress exempted from taxation the identi categories of organizations that had been exempt from tax under the Revenue Acts of 1934, 1936 and 1938. During the fifteen years in which the 1939 Code remained in effect, IRS issued three sets of regulations, each of which define term "charitable" to mean relief of poverty. See Treas. Reg. 103, $19.101(6)-1 (1939 Code); Treas. Reg. 111, $29.1 (6)-1 (1939 Code); Treas. Reg. 118, $39.101 (6)-1(b) (1939 Code). 12/

Section 501(c)(3) of the 1954 Code, ch. 591, 68A Stat. continued to exempt the same categories of organizations th been exempt from taxation under the 1939 Code, and added to list of exempt entities those organizations which are organ and operated for the purpose of "testing for public safety.'

12/ The House Report to the 1939 Act explained that the the for granting tax exemptions by Congress to charitable and ot qualifying organizations was in recognition of their perform of functions that promote the general welfare and that might| wise be paid by the government. Contrary to the Fourth Circ suggestion in Bob Jones University, supra, 639 F.2d at 151, port does not indicate that Congress intended to endow the I authority to disqualify a designated organization from tax-ex status upon an agency determination that one or more of the d ganization's practices affronted an IRS concept of federal pu policy as informed by the "general welfare." To the contrary Congress made a determination that organizations within the t of Section 501(c)(3) advanced the general welfare, and did no give the IRS authority to determine on a case-by-case basis w ther particular practices of a qualifying organization suffic subtracted from the general welfare to warrant denial of a ta exemption.

its interpretation of "charitable" beyond merely the poor." In Section 1.501(c)(3)−1(d)(2) of its tions, the Service concluded:

The term "charitable" is used in Sectio (c)(3) in its generally accepted legal and is, therefore, not to be construed limited by the separate enumeration in 501(c)(3) of other tax-exempt purposes may fall within the broad outlines of " as developed by judicial decisions. Su includes: Relief of the poor and distr of the underprivileged; advancement of advancement of education or science; er maintenance of public buildings, monume works; lessening of the burdens of Gove and promotion of social welfare by orga designed to accomplish any of the above or (i) to lessen neighborhood tensions; eliminate prejudice and discrimination; defend human and civil rights secured b (iv) to combat community deterioration juvenile delinquency.

13/ The 1954 Code does not permit tax-exempt org "participate in, or intervene in (including the p distributing of statements), any political campai of any candidate for public office."