April 22, 1999 | Read Time: 1 minute
The I.R.S. has revoked an amateur-bowling organization’s tax-exempt status because it furthered the private interests of its officers, directors, and others, and failed to carry out its charitable mission.
The non-profit organization, which the I.R.S. did not identify as a matter of policy, said on its application for exemption that it would train volunteers to serve as bowling coaches, and provide coaching, training, and competition for young amateur bowlers.
But the organization did not conduct any of the promised programs, the I.R.S. said. Its “primary activity” appeared to be reimbursing a for-profit bowling enterprise, controlled by the charity’s founder, for letting the young bowlers use its facilities, the I.R.S. said.
The charity received most of its income from the sale of so-called pickle cards, or gaming tickets.
The charity was founded by the general manager and part-owner of a bowling alley who was barred from serving as an official of the charity because he had violated state gaming laws.
The founder controlled most of the money that the charity paid out, the I.R.S. said. Other money went for the personal use of a married couple who served as officers of the charity.
The I.R.S. said that even if the bowling organization had retained its tax-exempt status, it would be classified as a private foundation and its income from the pickle cards would be subject to the unrelated-business income tax. Charities must pay the tax on money-making activities that are unrelated to their missions (Technical Advice Memorandum 9851001).
