Support the Child, Inc., a § 501(c)(3) organization, provides clothing for the children of disabled, low-income taxpayers. All of the clothes are received as contributions from individuals or from a wholly-owned, for-profit subsidiary (Sales, Inc.), which is in the retail clothing business (i.e., clothing that has been in inventory for over 120 days is transferred to Support the Child for distributions to qualified individuals). In addition to the clothing, Sales distributes 75% of its net income each year to Support the Child.

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The Answer of Support the Child, Inc., a § 501(c)(3) organization, provides clothing for the children of disabled, low-income taxpayers. All of the clothes are received as contributions from individuals or from a wholly-owned, for-profit subsidiary (Sales, Inc.), which is in the retail clothing business (i.e., clothing that has been in inventory for over 120 days is transferred to Support the Child for distributions to qualified individuals). In addition to the clothing, Sales distributes 75% of its net income each year to Support the Child.