USTC Cases, New Dynamics Foundation, Plaintiff v. The United States, Defendant., U.S. Court of Federal Claims, 2006-1 U.S.T.C. ¶50,286, (Apr. 24, 2006) New Dynamics Foundation, Plaintiff v. The United States, Defendant. U.S. Court of Federal Claims; 99-197T, April 24, 2006, 70 FedCl 782. Code Sec. 501 I Exempt organhations: Exempt status: Charitable purpose.— The IRS properly determined that a California corporation that administered a donor advised fund did not qualify for tax-exempt status under Code Sec. 501(c)(3). The corporation's operations. in particular its supervision of donor foundations, was characterized at least by willful neglect and. more than likely. an active willingness to participate in a scheme designed to produce inappropriate tax benefits. The corporation and its board strained the concept of charity in approving personal expenditures. Further. its operations always were motivated by an intent to facilitate the abuse of the internal revenue laws. From the start, the fund's promotional materials revealed that it was designed to "warehouse wealth." that is, to allow donors to "contribute" property and cash to their foundations, control the investment of those resources and then assertedly have the income and appreciation on that corpus accrue or be realized tax free. Back reference: 122,609.411. Code Sec. 74281 Declaratory judgment: Procedures: Exempt organizations.— A corporation was not entitled to declaratory relief under Code Sec. 7428 because it was not operated exclusively for charitable purposes. In an initial qualification for tax-exempt status. the court held that de nova was the correct standard—is was for the court to determine whether the organization was entitled to exemption. This standard nxre closely tracts the statutory language and legislative history. Thus. the court was not required to review the IRS's determination directly. but rather compelled it to make a declaration as to the qualification itself. The c