Friday, December 30, 2011
A private foundation built a path on an island that only had one paved road previously. The path was made to provide safe access for pedestrians and bicyclists to “private” portions of the island. The agent who examined the path thought that access was too limited. The National Office disagreed and said that the resident population of the island along with the population of the municipality that the island was a part of is a large enough community for the path to be considered as a benefit to the general public.
The recent technical advice memorandum based on the facts above states that a private foundation can keep its exempt status when it builds and maintained a recreational path limited to residents of the municipality.
See TAM 201151028 (Sept. 23, 2011); see also TAM 201151028 – Maintaining Recreational Path is an Exempt Purpose, CharitablePlanning.com, Dec. 27, 2011.
Special thanks to Jim Hillhouse (WealthCounsel) for bringing this article to my attention.