APPEAL OF FALES, Docket No. 4362.

• Decision Date: 23 December 1927
• Docket Number: Docket No. 4362.
• Parties: APPEAL OF HERBERT E. FALES.
• Court: U.S. Board of Tax Appeals

9 B.T.A. 828 (1927)

APPEAL OF HERBERT E. FALES.

Docket No. 4362.

Board of Tax Appeals.

Promulgated December 23, 1927.

Allison L. H. Newton, Esq., for the petitioner.

A. H. Murray, Esq., for the Commissioner.

In this proceeding the petitioner seeks a redetermination of his income-tax liability for the calendar year 1920, for which the respondent first determined a deficiency in the amount of $910.73. This amount has been reduced by agreement of the parties so that there only remains in controversy $114.70. The proposed deficiency arises from the disallowance by the Commissioner as deductions from gross income of amounts paid to alleged charitable and educational corporations on the ground that the corporations in question do not come within any of the classes specified in section 214(a) (11) of the Revenue Act of 1918.

FINDINGS OF FACT.

In the year 1920 the petitioner made contributions to the organizations and in the amounts named below:

                  Y. D. Club _______________________________________________  $50
                  North American Civic League for Immigrants _______________   25
                  International Reform Bureau ______________________________  100
                  Scientific Temperance Federation _________________________   25
                  Massachusetts Anti-Saloon League _________________________  100
                  Massachusetts Anti-Cigarette League ______________________   10
                

(1) The "Y. D. Club, Boston Chapter Yankee Division Veterans' Association, called the Y. D. Club of Boston," is a Massachusetts corporation formed for the purpose of establishing and maintaining a clubhouse in the City of Boston for the promotion of social intercourse between, and for the welfare of, former members of the Twenty-sixth Division; for their education and the fostering of good citizenship; as a center to keep the traditions and spirit of the Division alive; and as a memorial to its dead. The corporation by its charter may not operate for profit; all receipts whether for dues or otherwise are required to be devoted to the maintenance of the club, the welfare of its members and the perpetuation of the records of the Division. The money contributed by the taxpayer was to go toward the cost of constructing and equipping a building for the Y. D. Club.

(2) The North American Civic League for Immigrants is an unincorporated voluntary association composed of a limited number of members. Its express purpose is to accomplish the civic betterment of immigrants. It has a written constitution, which provides that it shall be controlled by a body of 15 persons, who are named, and their successors who shall be elected at a meeting of the members. The constitution provides for a president, vice president, treasurer, and clerk, to be elected annually. Its agents meet immigrants at the ports and give them information and advice. Later the immigrants are met in their communities and are given opportunity through information bureaus to find out the things they may wish to know. The agents in charge of the bureau advise them to learn the English language as early as possible; direct them to public schools and other organizations; assist in getting them enrolled in evening schools; instruct them directly and provide instructors for evening classes. The League endeavors to have the immigrants instructed in the English language and in the underlying principles of this Government. No part of any net earnings inures to the benefit of any individual. None of its funds are used to assist those who are sick or in distress; its agents and secretaries direct such cases to those organizations or agencies which are equipped to do so. Its total expenditures in 1920 were $44,667, of which about $26,000 was for salaries.

(3) The International Reform Bureau (now called the International Reform Federation) is a corporation of the District of Columbia, the purpose of which is stated as follows:

The object of this corporation shall be to promote those Christian reforms on which the churches socialogically agree while theologically differing, such as the defense of the Lord's Day and of purity, the suppression of intemperance, gambling and political corruption; and the substitution of arbitration and conciliation for both industrial and international law.

Its operations consist of endeavoring through the dissemination of literature and by advocating legislation to attain its stated objects. It has advocated prohibition, abolition of gambling and vice, and the improvement and betterment of motion pictures, and it publishes a periodical called the "National Lecturer." The literature is placed before the public through the National Lecturer, by correspondence, and through the newspapers. It also conducts public lectures. In 1920 the Bureau supported candidates for public office who stood for the principles advocated by the Bureau. It is not operated for profit.

(4) The Scientific Temperance Federation is a Massachusetts corporation organized for the purpose of collecting and disseminating information concerning hygiene and the nature and effects of alcoholic drinks and other narcotics. It gathers data on the nature and effects of alcoholic drinks and maintains a classified library thereon. It puts information and data which it collects into pamphlets, leaflets, posters, slides, etc., which it disseminates through temperance and educational organizations. In 1920,...