EFTA00311012.pdf

PAUL HOFFMAN, ATTORNEVS•AT•LAW 41-42 KONGENS GADE POST OFFICE BOX 870 ST. THOMAS. V.S. VIRGIN ISLANDS 00804-0870 September 14, 2000 BY FAX AND REGULAR MAIL Mr. Darren K. Indyke J. Epstein & Company, Inc. 457 Madison Avenue New York, NY 10022 Re: J. Epstein Virgin Islands Foundation, Inc. Dear Darren: Enclosed are copies of Forms 1023 and 8718 which are date-stamped as received by the Virgin Islands Bureau of Internal Revenue on September 13, 2000. The determination letter. when issued by the Internal Revenue Service, will be sent directly to the Foundation at 6100 Red Hook Quarter, St. Thomas, VI 00802. Please send us a copy of the determination letter when received so we can forward it on to Attorney Smalls at the Virgin Islands Bureau of Internal Revenue. Attorney Smalls will then issue a determination letter from the Virgin Islands Bureau of Internal Revenge. Sincerely, PAUL HOFFMAN, a Barbara Mignon Weatherly BMW:lb Enclosures cc: Mrs. Cecile R. de Jongh (w/encl.) EFTA00311012  user ree run Exempt.uryanlcauvn Form (Rev. 8713 Determination Letter Request Contra number January 1998) In Attach this form to determination letter application. Amami paid onsarunsat ate Traestry Use lea scream Memel Reams Simla (Form 8718 is NOT a determination letter application.) 1 Name or organization 2 Employer Identification Number J F-425 tein Tcancld. PonHA aticr1, . Caution: Do not attach Form 8778 to an application for a pension plan determination e er. se OfT 8717 instead. 3 Type of request Fed a 0 Initial request for a determination letter for: • An exempt organization that has had annual gross receipts averaging not more than S10.000 during the preceding 4 years. or • A new organization that anticipates gross receipts averaging not more than $10,000 during its firs. 4 years ► $15 Note: If you checked box 3a. you must complete the Certification below. Certification I certify that the annual gross receipts of name of organnatiOn have averaged (or are expected to average) not more than $10.000 during the preceding 4 (or the first 4) years : operation. Signature ► Title tio b [s] Initial request for a determination letter for: • An exempt organization that has had annual gross receipts averaging more than S10.000 during the preceding 4 years. or • A new organization that anticipates gross receipts averaging more than $10.000 during its rust 4 years . ► SSC c 0 Group exemption letters SEC Instructions Attach to Form 8718 a check or Send the determination letter money order payable to the Internal application and Form 8718 to: The law requires payment of a user fee Revenue Service for the full amount of with each application for a determination Internal Revenue Service the user fee. If you do not include the P.O. Box 192 letter. The user fees are listed on line 3 full amount. your application will be Covington, KY 41012.0192 above. For more information, see Rev. returned. Attach Form 8718 to your Proc. 98-8. 1998.1. I.R.B. 225. determination letter application. If you are using express mail or a Check the box on line 3 for the type delivery service. Send the application of application you are submitting. If you and Form 8718 to: check box 3a. you must complete and Internal Revenue Service scc the carhresticn statemert that 201 West Rivercenter Blvd. appears under line 3a. RECEIVED WITH REMITTANCE Attn: Extracting Stop 312 PROCESS & ACCT. BRAWL Covington. KY 41011 SEP 1 3 2000 Inv; ISLANDS BUREAU OF INTERNAL REVENUE ST, THOMAS VI FINANCIAL TRUST COMPANY, INC. SCOTIABANK THE BANK OF NOVA SCOTIA 5127 6100 RED HOOK QUARTERS, SUITE B-3 CHARLOTTE AMALIE ST. THOMAS. USVI 00802 ST. THOMAS. USVI HD -605/216 9/I II2000 PAY TO Internal Revenue Service j $ "500.00 ORDER OFTHE Five Hundred and 00/100 DOLLARS SKvmiau Internal Revenue Service r Den en or. THOMAS. LIEU! MEMO PIP EFTA00311013 ,„,1023 Application for Recognition of Exemption OMB No. 1545-0056 le September 19981 Under Section 501(c)(3) of the Internal Revenue Code Note: If exempt ;fetus is appmvert this lesionent of the henry Iran Reventit Set•Ne application wit be open for public inspection. Read the instructions for each Part carefully. A User Fee must be attached to this application. If the required information and appropriate documents are not submitted along with Form 8718 (with payment of the appropriate user fee), the application may be returned to you. Complete the Procedural Checklist on page 8 01 the instructions. art Identification &Applicant a Full name of organization (as shown in organizing document) 2 Employer identification number (EIN) PI none. see page 3 of the Specific Instrecifons.1 _ti7 EDatelb Virstin Islands Foundation. Inc b c/o Name applicable) 3 Name and telephone number of person to be contacted if additional information is needed c Address (number and street) Room/Suite Suite Jeffrey Schantz d City, town, or post office. state. and ZIP • 4. If you have a foreign address. 4 nnua accounting period ends see Specific Instructions for Part I, page 3. December S Date inconprategbfermed St Thomas. 00102 June a, z e Web site address 6 Check here d applying under section: a 0501(e) b 0 501th e ❑SO1 d ❑501 Did the organization previously apply for recognition of exemption under this Code section or under any other section of the Code? II 'Yes." attach an explanation 0 Yes al No is the organization required to hie Form 990 (or Form 990-EZ)? (2) N/A 0 Yes 0 No if No. attach an explanation (see page 3 of the Specific Instructions). Has the organization filed Federal income tax returns or exempt organization information returns? 0 Yes EtTI No if 'Yes.* state the form numbers. years filed. and Internal Revenittiftwhere PROCESS& ACCT. BRANCH SEP 1 3 ma Check the box for the type of organization. ATTASeitigAgyAgfyifrE47.ECOpyrA5y,T2211C.DRRESPONDING ORGANIZING DOCUMENTS TO THE APPLICATION BEFORE MAILING (See Specilic Instructions for Part I. Line 10. on page 3) See also Pub. 557 for examples of organizational documents) a )0 Corporation— Attach a copy of the Articles of Incorporation (including amendments and restatements) showing approval by the appropriate state official: also include a copy of the bylaws. o 0 Trust— Attach a copy of the Trust Indenture or Agreement, including all appropriate signatures and dates. 0 Association— Attach a copy of the Articles of Association. Constitution, or other creating document, with a declaration (see instructions) or other evidence the organization was lormed by adoption of the document by more than one person; also include a copy of the bylaws. If the organization is a corporation or an unincorporated association that has not yet adopted bylaws. check here In: declare under me penalties of perpsy Mat I am sulhoroied to yin inn Opkeati011 on behae of the above organization and that gong tn. accompanying scneeuies and attachments. and to the test of my knowledge *I is true. correct i hare clammed inn application and complete ase .• • n Inn EFTA00311014 Form 1021 (Rey 9181 Page 2 Part Activities and Operational Inforrnation Provide a detailed narrative description of all the activities of the organization-past, present, and planned. Do not merely refer to or repeat the language in the organizational document. List each activity separately in the order of importance based on the relative time and other resources devoted to the activity. Indicate the percentage of time for each activity. Each description should include, as a minimum, the following: (a) a detailed description of the activity including its purpose and how each acitivity furthers your exempt purpose: (b) when the activity was or will be initiated: and (c) where and by whom the activity will be conducted. The Foundation intends to use its financial resources to support other not-for-profit organizations exempt under Section 501(c)(3) of the Internal Revenue Code. It will from time to time hold funds in in interest bearing accounts or investments in income yielding securities. Any income derived from such investments will be used for its stated exempt purposes. The activities of the Foundation will be administered by its Board of Trustee s and duly appointed officers. 2 What are or will be the organization's sources of financial support? List in order of size. The Foundation will be funded principally by contributions from the initial donor. 3 Describe the organization's fundraising program. both actual and planned, and explain to what extent it has been put IMO effect. Include details of fundraising activities such as selective mailings. formation of fundraising committees. use of volunteers or professional fundraisers, etc. Attach representative copies of solicitations for financial support. No fund raising activities are planned for the Foundation. EFTA00311015  form 7023 IRO 'I'M Page 3 Part 11 Activities and Operational IrfOrmation (Continua. 4 Give the following information about the organization's governing body: a Names. addresses. and titles of officers. directors, trustees. etc. b Annual compensation Jeffrey Epstein - Trustee, President and Treasurer None c/o American Yacht Harbor, 6100 Red Hook, Quarters #2, St. Thomas, U.S.V.I. 00802 Paul Hoffman - Trustee, Vice Presiden t, Asst. None Treasurer and Asst. Secretary 41-42 Kongens Gade, St. Thomas, U.S. Jeffrey Schantz - Trustee, Vice Presiden V.I. 00802 t and None Secretary 457 Madicnn 417orsua, Ath Now York, NY 10032 e Oo any of the above persons serve as members of the governing body by reason of being public officials or being appointed by public officials? If 'Yes.' name those persons and explain the basis of their selection or O Yes No appointment. —> a U.S.V.I. corporation which is the init contibutor to the Foundation. Mr. ial donor and a substant Schantz is an employee of a ial entity controlled by Mr. Epstein. business d Are any members of the organization's governing body 'disqualified persons" with respect to the organization (other than by reason of being a member of the governing body) or do any of the members have either a business or family relationship with 'disqualified persons"? (See Specific Instructions for Part II, Line 4d. on page 3 ) if -res.- explain. Jeffrey Epstein, Trus co Yes O No tee, President and Treasure Schantz, Trustee, Vice President r, and Jeffrey and Secretary, of the Foundati disqualified persons. Mr. Epstein on, are is a principal, a director and Pr door ann Mr- ccnanta }s the a director Does the organization control or is it controlled by any other organization" C. is the organization the outgrowth of (or successor to) another organi zation, or does it have a special relationship with another organization by reason of interlo cking directorates or other factors? . . . Yes O No if either of these questions is answered 'Yes." explain. See response to item 4.d. above. Mr. Epstein is director and of The C.0.U.Q. Foundation, Inc. and President a Trustee of the J. Epstein both of which are already qualified Foundation under Section 501(c)(3) of the Internal Revenue Code. It is not intended that there will be any between either of these organization dealings s and the Foundation. 6 Does or will the organization directly or indirectly engage in any of the following transactions with any political organization or other exempt organization (other than a 501(c)(3) organization). (a) grants: (b) purchases or sales of assets; (c) rental of facilities or equipment; (d) loans or loan guarantees. (e) reimbursement arrangements; (0 performance of services, memb ership, or fundraising solicitations; or (g) sharing of facilities. equipment, marling lists or other assets. or paid employees' ❑ Yes 'Yes: explain fully and identify the other organizations involved. No 7 Is the organization financially accountable to any other organization ' if - Yes," explain and identify the other organization. Include details concerning accountability or attach O Yes )p No copies of reports if any have been submitted EFTA00311016  Fenn 1023 IRev 9 99) Pave 4 Part II Activities and Operational Inkeniatian (Ccritinual 8 What assets does the organization have that are used in the performance of its exempt function? (Do. not include property producing investment income.) If any assets are not fully operational, explain their status, what additional steps remain to be completed, and when such final steps will be taken. If none, indicate -NIA: N/A 9 Will the organization be the beneficiary of tax-exempt bond financing within the next 2 years?. . O Yes El No 10a Will any of the organization's facilities or operations be managed by another organization or individual under a contractual agreement' O Yes fa No b Is the organization a party to any leases? O Yes J No If either of these questions is answered 'Yes; attach a copy of the contracts and explain the relationship between the applicant and the other parties. 11 Is the organization a membership organization? O Yes Q No If 'Yes.' complete the following: a Describe the organization's membership requirements and attach a schedule of membership fees and dues. b Describe the organization's present and proposed efforts to attract members and attach a copy of any descriptive literature or promotional material used for this purpose. c What benefits do (or will) the members receive in exchange for their payment of dues" 12a if the organization provides benefits. services, or products. are the recipients required. or will they be required. to pay for them? N/A O Yes O No If -yes: explain how the charges are determined and attach a copy of the current fee schedule. b Does or will the organization limit its benefits, services. or products to specific individuals or classes of individuals? N/A O Yes O No if - Yes: explain how the recipients or beneficiaries are or will be selected. 13 Does or will the organization attempt to influence legislation? O Yes No if 'Yes.- explain. Also. give an estimate of the percentage of the organization's time and funds that it devotes or plans to devote to this activity 14 Does or will the organization intervene in any way in political campaigns. including the publication or distribution of statements' O Yes No 1/ Yes,' ?)i plain fully EFTA00311017 F011,1 1023 Rea 9.9a1 Page 5 Part III Technical Reqdrennents 1 Are you filing Form 1023 within 15 months from the end of the month in which your organization was created or formed" LYes ❑ No If you answer "Yes,* do not answer questions on lines 2 through 6 below. 2 If one of the exceptions to the 15-mOnth filing requirement shown below applies. check the appropriate box and proceed to question 7. Exceptions— You are not required to file an exemption application within 15 months if the organization: a Is a church. interchurch organization of local units of a church, a convention or association of churches. or an integrated auxiliary of a church. See Specific Instructions, Line 2a. on page 4: b Is not a private foundation and normally has gross receipts of not more than 55.000 in each tax year: or c Is a subordinate organization covered by a group exemption letter, but only if the parent or supervisory organization timely submitted a notice covering the subordinate. 3 if the organization does not meet any of the exceptions on line 2 above. are you filing Form 1023 within 27 months from the end of the month in which the organization was created or formed? ❑ Yes ❑ No il "Yes.- your organization qualifies under Regulation section 301.9100-2. for an automatic 12 month extension of the 15 -month filing requirement. Oo not answer questions 4 through 6. if 'No.- answer question 4 4 II you answer No to question 1. does the organization wish to request an extension of time to apply under the 'reasonable action and good faith' and the 'no prejudice to the interest of the government* requirements of Regulations section 301 9100-3? ❑ Yes ❑ No if "Yes." give the reasons for not filing this application within the 27-month period described in question 3 See Specific Instructions, Part HI. Line 4. before completing this item. Do not answer questions 5 and 6 if No. answer questions 5 and 6 5 :1 you answer - No' to question 4. your organizations qualification as a section 501(c)(3) organization can be recognized only from the date this application is filed. Therefore, do you want us to consider the application as a request for recognition of exemption as a section 501(c)(3) organization from the date the application is received and not retroactively to the date the organization was created or formed' . ❑ Yes ❑ No 6 it you answer 'Yes' to question S above and wish to request recognition of section 501(c1(4) status for the period beginning with the date the organization was formed and ending with the date the Form 1023 application was received (the effective date of the organizations section 501(O31 status). check here ► ❑ and attach a completed page 1 of Form 1024 to this application EFTA00311018 Form 1023 Pm 9el Page 6 Part Techrical Requirements (antimal 7 is the organization a private foundation? Na Yes (Answer question 8.) ❑ No (Answer question 9 and proceed as instructed.) 8 II you answer "Yes" to question 7. does the organization claim to be a private operating foundation? ❑ Yes (Complete Schedule E.) fR No After answering quesiacrt 8 m this tire. go to lire 14 cri page 7. 9 If you answer 'No' to question 7. indicate the public charity classification the organization is bnx below that most appropriately applies: requesting by checking the THE ORGANIZATION IS NOT A PRIVATE FOUNDATION BECAUSE IT QUALIFIES: a ❑ As a church or a convention or association of churches Sections 509(a)(1) (CHURCHES MUST COMPLETE SCHEDULE A.) and 170(b)(1)(A)(i) Sections 509(a)(1) b ❑ As a school (MUST COMPLETE SCHEDULE B.) and 170(3)(1)(Allii) e ❑ As a hospital or a cooperative hospital service organization, or a medical research organization operated in conjunction with a Sections 509(a)(1) hospital (These organizations, except for hospital service and 170(b)(1)(A)(iii) organizations. MUST COMPLETE SCHEDULE C.) Sections S09(a)(1) d ❑ As a governmental unit described in section 110(c)(1). and 170(b)(1)(A)(v) e ❑ As being operated solely for the benefit of, or in connection with. one or more of the organizations described in a through d, g, h, or i (MUST COMPLETE SCHEDULE 0.) Section 509(a)(3) I ❑ As being organized and operated exclusively for testing for public safety. Section S09(a)(4) g ❑ As being operated for the benefit of a college or university that is Sections S09(a)(1) owned or operated by a governmental unit. and 170())(1)(A)(ivl h ❑ As receiving a substantial pail of its support in the form of contributions from publicly supported organizations. from a Sections S09(a)(1) governmental unit, or from the general public. and 1701b1110)(vd ❑ As normally receiving not more than one-third of its support from gross investment income and more than one•third of its support from contributions, membership fees. and gross receipts from activities related to its exempt functions (subject to certain exceptions). Section S09(a)(2) j ❑ The organization is a publicly supported organization but is not sure Sections sos(a)(1) whether it meets the public support test of h or i. The organization and I 7 0021(1)(Allvil would like the 'RS to decide the proper classification. or Section 509(a)(2) If you checked one of the boxes a through I in question 9, go to question 14. If you checked box g in question 9, go to questions 11 and 12. If you checked box h, i, or j, in question 9, go to question 10. EFTA00311019 F dim 1023 iRev 9.90) Page 7 Part III Technical Requinernents (Contrive°, 10 If you checked box h, i, or j in question 9, has the organization completed a tax year of at least 8 months? O Yes—Indicate whether you are requesting: O A definitive ruling. (Answer questions 11 through 14.) O An advance ruling. (Answer questions 11 and 14 and attach two Forms 1372.G completed and signed.) ❑ No —You must request an advance ruling by completing and signing two Forms $72-C and attaching them to the Form 1023. 11 If the organization received any unusual grants during any of the tax years shown in Part IV-A. Statement Expenses, attach a list for each year showing the name of the contributor: the date and of Revenue and the amount of the grant; and a brief description of the nature of the grant. 12 II you are requesting a definitive ruling under section 170(1)0)(0v) or (vi), check here ► O and: a Enter 2% of line 8, column (e), total, of Part IV-A h Attach a list showing the name and amount contributed by each person (other than a governmental unit supported" organization) whose total gifts, grants, contributions. etc., were more than the amount or "publicly above. entered on line 12a 13 If you are requesting a definitive ruling under section 509(a)(2). check here ► O and: a For each of the years included on lines 1. 2. and 9 of Part IV.A, attach a list showing the name of and amount from each 'disqualified person.' (For a definition of 'disqualified person,' see Specific Instructions, Part received II. Line 4d, on page 3.1 to For each of the years included on line 9 of Part IV-A. attach a list showing the name of and amount eceived payer (other than a 'disqualified person') whose payments to the organization were more than SS,000. For from each 'payer" includes, but is not limited to. any organization described in sections 110(b)(1)(A)(i) through this purpose. governmental agency or bureau. i) and any 14 indicate if your organization is one of the following. II so. complete the required schedule. (Submit If "Yes,' only those schedules that apply to your organization. Do not submit blank schedules.) Yes No complete Schedule: is the organization a church, A X is the organization. or any part of it, a school? B is the organization. or any part of it. a hospital or medical research organization? . C is the organization a section 509(a)(3) supporting organization? X 0 is the organization a private operating foundation? X E is the organization, or any part of it, a home for the aged or handicapped? is the organization. or any part of it. a child care organization? Does the Organization provide or administer any Scholarship benefits, student aid, etc 7 El Has the organization taken over or will it take over, the facilities of a 'for prole institution, X EFTA00311020 F we 1023 leer 9 981 Page 8 Part IV Financial Data Complete the financial statements for the current year and for each of the 3 years immediately before it. If in existence less than 4 years. complete the statements for each year in existence. If in existence less than 1 year, also provide proposed budgets for the 2 years following the current year. A Staterran of Reueruo ad BA:tenses Current 3 prior tax years or proposed budget for 2 years tax year I Gifts. grants, and contributions (*from 6J15 (b) 2001 (c) 2002 reamed (not including unusual (dl grants-see page 6 of the to 4/13 (e) TOTAL instructions) 1$7,son 25411111 25,OOO 237, 500 2 Membership fees received 3 Gross investment income (see instructions for definition) 10, 000 10,000 20, 00 0 4 Net income from organization's unrelated business activities not included on line 3 Tax revenues levied for and 5 either paid to or spent on behalf of the organization 6 Value of services a facilities lumisted by a governmental unit to the aganization without charge (not including the value of services or fealties generally ftsnished the public without charge) . 7 Other income (not including gain or loss from sale of capital assets) (attach schedule) 8 Total (add lines 1 through 7) 9 Gross peelers from admissions, sales d mattandise or services. or furnshng of facilities in any activity that rs not an unrelated business within the meaning of section 513. Include related cost of sates on line 22 10 Total (add lines 8 and 9) 11 Gain Gloss from sale of capital assets (attach schedule) 12 Unusual grants 13 Total revenue (add lines 10 through 12) 187,500 35,000 35,000 257,5OO 14 Fundranng expenses . . . 15 Contributions. gifts. grants. and similar amounts paid (attach schedule) 37, 500 37,500 16 Disbursements to or for benefit of members (attach schedule) . 17 Compensation of officers. directors. and trustees (attach schedule) 2, 18 PC Other salaries and wages- LI 19 Interest 20 Occupancy (rent, utilities. etc.) 21 Depreciation and depletion 22 Other (attach schedule) . 23 Total ”roenses ladd Ines L1 EFTA00311021  Form 1023 Ian 3.911) Page 9 Part IV Financial Data (Contirvect EL Balance Sheet (a the end of the period shone Current tag year Date9 inn Assets 1 Cash 1 187,500 2 Accounts receivable. net 2 1 Inventories 3 4 Bonds and notes receivable (attach schedule) 4 5 Corporate stocks (attach schedule) 6 Mortgage loans (attach schedule) 6 7 Other investments (attach schedule) 7 8 Depreciable and depletable assets (attach schedule) 8 9 Land 9 0 Other assets (attach schedule) 10 1 Total assets (add tines 1 through 10) 11 187,500 Liabilities Accounts payable 12 3 Contributi