Proposed regulations clarify the substantive requirements for tax exemption under section 501(c)(3) of the Code. This document also contains provisions that clarify the relationship between the substantive requirements for tax exemption under section 501(c)(3) and the imposition of section 4958 excise taxes.

Alpha Kappa Psi Scholarship Fund, of Minneapolis, MN; Alphabets Childcare Center, Inc., of Clarksville, TN; Inner City Development Foundation, of Los Angeles, CA; and Rocky Road Incorporated, of Snowmass Village, CO, no longer qualify as organizations to which contributions are deductible under section 170 of the Code.