Rep. Matthew Hill & WPWT "Private" Ownership :
He's Got Some Mighty Tall 'Splain' To Do
I think that Rep. Matthew Hill needs to give a thorough explaination to federal taxpayers in Northeast Tennessee as to how his family's Information Communications Corporation (ICC) was able to convert the Hill-directed Appalachian Educational Communications Corporation (AECC) ownership of WPWT 870 AM (and perhaps other AECC owned assets such as the WHGG 1090 AM radio station once promoted by the moniker "Heralding God's Graces" --- and now referred to as the "Mighty 1090" rock n' roll AM station) --- into privately controlled assets now held by his father Dr. Kenneth C. Hill's Information Communications Corporation as federal tax code specifically states that the "...assets of an [501 (c)(3) tax exempt] organization must be permanently dedicated to an exempt purpose.:
[IRS 501(c)(3)]Exemption Requirements
http://www.irs.gov/charities/charitable/article/0,,id=96099,00.html
To be tax-exempt as an organization described in IRC Section 501(c)(3) of the Code, an organization must be organized and operated exclusively for one or more of the purposes set forth in IRC Section 501(c)(3) and none of the earnings of the organization may inure to any private shareholder or individual. In addition, it may not attempt to influence legislation as a substantial part of its activities and it may not participate at all in campaign activity for or against political candidate.
[...]
The exempt purposes set forth in IRC Section 501(c)(3)are...Educational...Advancement of education or science.
To be organized exclusively for a charitable purpose, the organization must be a corporation...The articles of organization must limit the organization's purposes to one or more of the exempt purposes set forth in IRC Section 501(c)(3) and must not expressly empower it to engage, other than as an insubstantial part of its activities, in activities that are not in furtherance of one or more of those purposes. This requirement may be met if the purposes stated in the articles of organization are limited in some way by reference to IRC Section 501(c)(3). In addition, assets of an organization must be permanently dedicated to an exempt purpose. This means that should an organization dissolve, its assets must be distributed for an exempt purpose described in this chapter, or to the federal government or to a state or local government for a public purpose. To establish that an organization's assets will be permanently dedicated to an exempt purpose, the articles of organization should contain a provision insuring their distribution for an exempt purpose in the event of dissolution. Although reliance may be placed upon state law to establish permanent dedication of assets for exempt purposes, an organization's application can be processed by the IRS more rapidly if its articles of organization include a provision insuring permanent dedication of assets for exempt purposes. For examples of provisions that meet these requirements, download Publication 557, Tax-Exempt Status for Your Organization.
An organization will be regarded as "operated exclusively" for one or more exempt purposes only if it engages primarily in activities which accomplish one or more of the exempt purposes specified in IRC Section 501(c)(3). An organization will not be so regarded if more than an insubstantial part of its activities is not in furtherance of an exempt purpose. For more information concerning types of charitable organizations and their activities, download Publication 557.
The organization must not be organized or operated for the benefit of private interests, such as the creator or the creator's family, shareholders of the organization, other designated individuals, or persons controlled directly or indirectly by such private interests. No part of the net earnings of an IRC Section 501(c)(3) organization may inure to the benefit of any private shareholder or individual. A private shareholder or individual is a person having a personal and private interest in the activities of the organization. If the organization engages in an excess benefit transaction with a person having substantial influence over the organization, an excise tax may be imposed on the person and any managers agreeing to the transaction.
Federal Communications Commission
Washington, D.C. 20554 Approved by OMB 3060-0010 (June 2002)
FCC 323 OWNERSHIP REPORT FOR COMMERCIAL BROADCAST STATIONS
FILE NO. BOA - 20010301AWW [WPWT 870 AM]
List the respondent, and, if other than a natural person, its officers, directors, stockholders and other entities with attributable interests, non-insulated partners and/or members. If a corporation or partnership holds an attributable interest in the respondent, list separately its officers, directors, stockholders and other entities with attributable interests, non-insulated partners and/or members. Create a separate row for each individual or entity. Attach supplemental pages, if necessary.
(Read carefully - The numbered items below refer to line numbers in the following table.)
1. Name and Address APPALACHIAN EDUCATIONAL COMMUNICATION CORP.
2. Gender (male or female)
3. Ethnicity (check one)
Hispanic or Latino
Not Hispanic or Latino
4. Race (select one or more)
American Indian or Alaska Native
Asian
Black or African American
Native Hawaiian or Other Pacific Islander
White
5. Citizenship US
6. Positional Interest N/A
7. Percentage of votes 100.00
8. Percentage of total assets (equity debt plus) 100.00
Yep...WPWT 870 AM was 100% owned by Appalachian Educational Communications Corporations back in 2001 according to the FCC Ownership statement filed by Dr. Kenneth Hill and federal tax code states that "...assets of an organization must be permanently dedicated to an exempt purpose."
Perhaps we should now be asking the following question of Rep. Matthew Hill who is the operations manager of the so-called "Appalachian Radio Group": just how did his father Dr. Kenneth C. Hill's Information Communications Corporation by 2006 end up with a 51% per cent private for-profit" ownership share of the AECC-owned WPWT 870 AM?
FCC 323 Ownership Report For Commercial Broadcast Station BOA - 20060303AAW [WPWT-870 AM)]