3/5/15

120 Greenwood Ave

Bethel CT 06801
203-994-2987
danielgaita@comcast.net
www.operationvetfit.org
IRS EIN#: 46-0672516
CT Charitable Reg. #: CHR0057817
CT Business ID: 1078472
S.A.M Cage Code: 6xwx7
DUNS #: 041915576
DBA: Private Studio Fitness
Town of Bethel
Board of Assessment Appeals
1 School Street
Bethel CT 06801
SUBJECT: PROPERTY TAX EXEMPTION FOR COMBAT VETERANS
501(c)(3)
To Whom It May Concern:
I present my appeal for property tax exemption for our Bethel based
combat veterans charity, Operation Vet Fit as set forth under the
Connecticut General Statutes Section 12-81

The Connecticut General Statutes provide for a number of tax

exemptions from municipal property taxes, including a charitable tax
exemption set forth at General Statutes 12-81.

As with all tax exemption statutes, 12-81 is strictly construed by the

courts. Simply being a 501(c)(3) organization is not sufficient to qualify
for a property tax exemption. The assessors analysis goes well beyond
federal tax exemption status. Instead, the assessor must consider
various factors to determine whether an entity is entitled to a
charitable property tax exemption, including not only the application of
an entity seeking to be exempt, but also the purpose of the entity and
the manner in which that entity actually uses the property.

Likewise, an entity that seeks to be tax exempt as a charitable

organization must take care to set up its organizational documents to
make it clear that it is being organized exclusively for a charitable
purpose, and must actually use the property at issue exclusively to
carry out that stated purpose.

General Statutes 12-81 contains absolute and unrelated prerequisites

to a claim for a charitable tax exemption. Primarily, no officer, member or employee of an entity seeking an exemption may receive any
pecuniary profit (although reasonable compensation for services is per-

mitted).

As evidence of this prerequisite that Operation Vet Fit

pays neither profit, nor compensation to any officer or
member, and further that Operation Vet Fit operates on a
100% volunteer basis with no paid employees, and no
paid board members, I have provided as evidence, copies
of our 2012, 2013, and 2014 filed IRS 990s.
Three-Part Analysis
General Statutes 12-81 requires that the organization seeking an
exemption be organized exclusively for charitable purposes, and that it
use the property at issue exclusively to carry out those purposes. The
Connecticut Supreme Court analyzed the various factors that must be
evaluated to determine whether an organization in fact qualifies for a
charitable

tax

_L_i_v_i_n_g_

exemption,
_C_e_n_t_e_r_

recently,
_I_n_c_._

in

S_t_._
_v_._

_J_o_s_e_p_h_s_
_T_o_w_n_

_o_f_

_W_i_n_d_h_a_m_, 290 Conn. 695 (2009) and again, in The Good

Foundation, Inc. V. Town of Windham, CV 4008026S, (2011)

The initial inquiry is to determine whether an entity is organized

exclusively for a charitable purpose. This inquiry requires a three-part
analysis.

First, and most importantly, the court will analyze an entity to

determine if it is in fact organized exclusively for charitable purposes.
In conducting this analysis, the court will first determine the purpose
for which the entity is organized by evaluating the organizational
documents. Thus, the organizational documents should not include
both a charitable purpose and a non-charitable purpose.

As evidence to our agency meeting this first component

of analysis I have attached, as evidence, our filed
documents specific to our charitable functions as
submitted to the IRS at the time our 501(c)(3) Form 1023
Application was submitted.
Once the entitys purpose is determined, the court will then evaluate
whether that purpose is charitable. This factor is interpreted broadly. In
S_t_._ _J_o_s_e_p_h_s_, the court determined that the provision of longterm health care and spiritual support to the elderly in a non-profit,
non-discriminatory manner, without regard to individual financial
circumstances, is a charitable purpose.
As evidence of the carried out charitable purposes of our
agency, I have additionally provided an endorsement
letter from our Congresswomen, Elizabeth Esty hereto.

Second, the court will consider whether a charitable entity is entirely

self-supporting. Though this factor is considered to a lesser extent than
the first factor, an entity that is entirely self-supporting is not exempt
for municipal tax purposes. See C_o_m_m_o_n_ _F_u_n_d_ _v_._
_F_a_i_r_f_i_e_l_d_, 228 Conn. 375 (1994).

According to the court in S_t_._ _J_o_s_e_p_h_s_, an entity must be

structured in such a way that it is intended to function with the aid of
at least some private charitable support and must, in fact, seek out
and receive such support. The court will analyze each case to
determine whether an entitys receipt of outside financial support,
including volunteer in-kind services, warrants an exemption. An
entity should carefully organize itself so that it will rely on, or at least
seek out, outside support, and the assessor should determine whether
it is entirely self-supporting.
As evidence our entity meets this second factor, we offer
again our first three years of IRS 990s which
demonstrate that our entity requires primarily outside
support from the community and its member donors.

According to the court in S_t_._ _J_o_s_e_p_h_s_,_ _the final factor

considered is whether the entity relieves a state or municipal burden
by pursuing a publicly mandated moral obligation in exchange for

the privilege of receiving a municipal tax exemption. The entity need

not, though, completely relieve the state or municipality of its
obligation.

As evidence that our entity meets this final factor, we

need look no further than the publicly available data
provided by the Department of Defense specifically, that
22 veterans kill themselves every single day. (Source:
http://www.suicideoutreach.org/Docs/Reports/DoD
%20Quarterly%20Suicide%20Report
%20CY2014%20Q1.pdf )

I need not quantify the cost to our community, our

families and especially our children when faced with the
loss of a loved one that served his nation due to suicide.

Additionally, It is common knowledge that Veterans

suffering from Post Traumatic Stress (PTSD), traumatic
brain injury (TBI), or any of the other varieties of service
connected injuries are more likely to engage in
dangerous behavior, domestic violence, and acts that
threaten the safety of our communities.

The veterans we serve at Operation Vet Fit are facing

their injuries in a safe and supportive environment. Many
have gone on to complete college, and others have
cleaned themselves up following addiction to drugs and
alcohol. Additiaonlly.

Our entity has stopped multiple suicides and we are

proud to report that we have not lost a single one of our
combat veterans to suicide.

In short, Operation Vet Fit precisely relives our municipal

burden from the cost associated with healing our nations
warriors. Id argue that there are not many other
mandated moral obligations which take precedent over
our established charitable purpose to serve those have
protected and defended all of us.

Therefore, we request that this Zoning Board of Appeals,

pursuant to CT General Statutes and cited case law above
waive the assessment of property taxes for Operation Vet
Fit, DBA Private Studio Fitness.

Respectfully Submitted,

Daniel R. Gaita, MA
Director, Operation Vet Fit.