Supplement 8H Consent 2013 0506 - Laserfiche WebLink

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line 1 of gifts, endowments and grants-in-aid, exceed operating expenses line 2 by an amount equivalent to more than 10 percent of those operating line 3 expenses. As used herein, operating expenses include depreciation line 4 based on cost of replacement and amortization of, and interest on, line 5 indebtedness. line 6 (2) No part of the net earnings of the owner inures to the benefit line 7 of any private shareholder or individual. line 8 (3) The property is used for the actual operation of the exempt line 9 activity, and does not exceed an amount of property reasonably line 10 necessary to the accomplishment of the exempt purpose. line 11 (A) For the purposes of determining whether the property is line 12 used for the actual operation of the exempt activity, consideration line 13 shall not be given to use of the property for either or both of the line 14 following described activities if that use is occasional: line 15 (i) The owner conducts fundraising activities on the property line 16 and the proceeds derived from those activities are not unrelated line 17 business taxable income, as defined in Section 512 of the Internal line 18 Revenue Code, of the owner and are used to further the exempt line 19 activity of the owner. line 20 (ii) The owner permits any other organization that meets all of line 21 the requirements of this subdivision, other than ownership of the line 22 property, to conduct fundraising activities on the property and the line 23 proceeds derived from those activities are not unrelated business line 24 taxable income, as defined in Section 512 of the Internal Revenue line 25 Code, of the organization, are not subject to the tax on unrelated line 26 business taxable income that is imposed by Section 511 of the line 27 Internal Revenue Code, and are used to further the exempt activity line 28 of the organization. line 29 (B) For purposes of subparagraph (A): line 30 (i) “Occasional use” means use of the property on an irregular line 31 or intermittent basis by the qualifying owner or any other qualifying line 32 organization described in clause (ii) of subparagraph (A) that is line 33 incidental to the primary activities of the owner or the other line 34 organization. line 35 (ii) “Fundraising activities” means both activities involving the line 36 direct solicitation of money or other property and the anticipated line 37 exchange of goods or services for money between the soliciting line 38 organization and the organization or person solicited. line 39 (C) Subparagraph (A) shall have no application in determining line 40 whether paragraph (3) has been satisfied unless the owner of the 96 AB 975— 19 —