"Exemption Requirements for IRC Section 501(c)(3)" Return

This will show that RIDOT, and ultimately the Newport Dinner Train [NDT], would close down the Old Colony & Newport Railway by forcing the forfeiting the OCNRR's 501(c)3 tax exempt status by forcing OCNRR to adhere to the demands of an entity that is a "for profit enterprise".

One volunteer's statement: "This being said, I would gather that NDT is behind most of the crippling items in this OPERATING AGREEMENT which MAY, or may not allow us to operate on the NSL, after 25 years of operation.

I would suggest that we contact the nearest IRS office for clarification of 501(c)(3) and how signing this agreement would affect OCN"

The following statement was taken from the "Exemption Requirements for IRC Section 501(c)(3)" on the IRS website http://www.irs.gov.

IRC 501(c)(3) states in part: "An organization will be regarded as 'operated exclusively' for one or more exempt purposes only if it engages primarily in activities which accomplish one or more of the exempt purposes specified in IRC Section 501(c)(3). An organization will not be so regarded if more than an insubstantial part of its activities is not in furtherance of an exempt purpose.

  • "The organization must not be organized or operated for the benefit of private interests, such as the creator or the creator's family, shareholders of the organization, other designated individuals, or persons controlled directly or indirectly by such private interests.
  • No part of the net earnings of an IRC Section 501(c)(3) organization may inure to the benefit of any private shareholder or individual. A private shareholder or individual is a person having a personal and private interest in the activities of the organization.
  • If the organization engages in an excess benefit transaction with a person having substantial influence over the organization, an excise tax may be imposed on the person and any managers agreeing to the transaction".