Form St 04-20 - Recommendation For Disposition Page 5
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12it; (5) the organization does not appear to place obstacles of any character in the way of
those who need and would avail themselves of the charitable benefits it dispenses.
Applying the guidelines from Methodist Old People’s Home, I conclude that ABC
has not presented clear and convincing evidence that it is, in fact, a charitable
organization. ABC’s Form 990, “Return of Organization Exempt From Income Tax,” for
year 2002 shows total revenue of $14,913,428, total expenses of $12,670,967 and an
excess of revenue over expenses of $2,242,461. More than 99% of the total revenue is
composed of “fees for providing blood related services.” Less than 1% of the total
revenue is from “government contributions (grants).” Tr. pp. 8, 63; Dept. Ex. No. 2. Part
IV-A of ABC’s Form 990 shows that from 1999 through 2001, ABC had revenue
averaging approximately $13.3 million per year for a total for the three years of
approximately $40 million. Total contributions for the three-year period, 1999 through
2001, were $433,526, approximately 1% of total revenue. The Methodist Old People’s
Home guideline that a charity’s funds be derived mainly from public and private charity
has not been met by ABC for the past three years and is not currently being met by the
applicant.
Moreover, I am unable to conclude from ABC’s Form 990 for 2002 and the
evidence admitted at the hearing that the applicant is organized “exclusively” for
charitable purposes or that its primary purpose is charitable. An “exclusively” charitable
purpose need not be interpreted literally as the entity’s sole purpose; it should be
interpreted to mean the primary purpose, and not a merely incidental or secondary
st
purpose. Gas Research Institute v. Department of Revenue, 154 Ill. App. 3d 430 (1
Dist.
1987).
ABC estimated that the value of its charitable contributions in 2003 was
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