Vision Service Plan, Inc. v. United States

MEMORANDUM **

Vision Service Plan, Inc. (“VSP”) appeals from the grant of summary judgment in favor of the United States on VSP’s claim that it is a social welfare tax exempt organization pursuant to 26 U.S.C. § 501 (C)(4);

VSP is not operated exclusively for the promotion of social welfare because it is not primarily engaged in promoting the common good and general welfare of the community. See 26 C.F.R. § 1.501 (c)(4)-1(a)(2)® (“An organization is operated exclusively for the promotion of social welfare if it is primarily engaged in promoting in some way the common good and general welfare of the people of the community.”). While VSP offers some public benefits, they are not enough for us to conclude that VSP is primarily engaged in promoting the common good and general welfare of the community. See, e.g., Monterey Pub. Parking Corp. v. United States, 481 F.2d 175, 177 (9th Cir.1973) (noting that the district court made a quantitative comparison between the private and public benefits); see also Comm’r v. Lake Forest, Inc., 305 F.2d 814, 818 (4th Cir.1962) (noting that the public benefits of organization were too insubstantial to qualify the organization as exempt under…