The U.S. Court of Appeals for the Sixth Circuit affirmed the Tax Court's decision classifying Lapham Foundation, Inc. as a private foundation under 26 U.S.C. §509(a)(3). The Foundation failed to meet the 'integral part' test, which is necessary to qualify as a supporting organization. The court found that the Foundation's contributions were insufficient to ensure the attentiveness of the supported organization, AEF, and that the Foundation's activities did not meet the 'but-for' test. The decision was based on the Foundation's failure to demonstrate that it was not controlled by disqualified persons and that its contributions were not substantial enough to ensure attentiveness from AEF.
documents/EFTA00598133.pdf
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