Are free fertility services a non-profit activity?

Let’s start off this Monday with something light. An individual founded a California nonprofit public benefit corporation to provide his sperm free of charge to women seeking to become pregnant through artificial insemination or in vitro fertilization. His website chronicles his life from infancy to adulthood, with photos, family history, and achievements (e.g., elementary school spelling bee and junior high school science fair competition).] While recognizing that the "free provision of sperm may, under appropriate circumstances, be a charitable activity," the Tax Court was "not convinced that the distribution of one man's . . . sperm to a small number of women, selected in the manner presented, promotes health or confers a public benefit." The court held that the organization was not operated exclusively for exempt purposes and therefore did not qualify for exempt status under IRC Sec. 501(c)(3). Free Fertility Foundation, 135 TC No. 2 (Tax Ct.).

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