Alabama Advisory Opinions March 30, 1988: AGO 88-00227 (March 30, 1988)

Advisory Opinion Text

Honorable Louis C. Rutland

County Attorney

Bullock County Commission

P. O. Box 108

Union Springs, Alabama 36089

Health Care - Hospitals -Nursing Homes - Charity Trust Fund

Bullock County Hospital and Nursing Home may qualify as a charity and be entitled to funds under Section 20 of Act No. 83-575 if it receives recognition from the Internal Revenue Service as a tax exempt, charitable organization.

Dear Mr. Rutland:

This is in response to your request for an Attorney General's opinion.

Your question is as follows:

Does the Bullock County Hospital and Nursing Home/ which is a public non-profit county hospital organized and incorporated under the authority of Chapter 95, Code of Alabama [§11-95-1, et seq .] and which provides health care services to the needy and indigent populations of Bullock and Macon counties, qualify as a charity under Act Number 83-575 for the purposes of applying for and receiving awards from the charity trust fund?

Act No. 83-575, Acts of Alabama 1983, page 882, establishes the Macon County Racing Commission and, among other things, provides for the distribution of monies received under the provisions of the Act. Section 20 of the Act states, in part, as follows:

"Upon request of recognized charities, the Racing Commission may extend said limitations of time for greyhound racing not to exceed three (3) days at any one time beyond the period otherwise provided by law so that any such track shall conduct a charity day or days of racing for any one or more recognized charities in Alabama wh i c h has a tax exempt status . as provided for under the Internal Revenue Code . The total of all profits derived from the operation of such racing on such charity days, including all monies which would otherwise be received by the Racing Commission as taxes for such day's operations, shall be and become a part of the charity trust fund for which such racing on such days is conducted. The charity trust fund shall be administered as directed by the Racing Commission." (Emphasis added.)

Section 501{c) of Title 26 of the Internal Revenue Code describes the organizations which shall be exempt from taxation. The Bullock County Hospital and Nursing Home fits within the description of the organizations listed in Section 501(c)(3), which states as follows:

"Corporations, and any community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or for the prevention of cruelty to children or animals, no z part of the net earnings of which inures to the benefit of any private shareholder or individual, no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation, and which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of any candidate for public office."

The Bullock County Hospital and Nursing Home should apply with the Internal Revenue Service, if it has not already done so, for recognition as a tax exempt, charitable organization under Section 501(c)(3). After receiving such recognition, the hospital would qualify as a charity under Section 20 of Act No. 8 3-575 for the purpose of applying for awards from the charity trust fund.

I hope this sufficiently answers your question. If this office can be of further assistance, please do not hesitate to contact us.

Sincerely,

DON SIEGELMAN, Attorney General.

BRENDA FLOWERS, Assistant Attorney General.