crop is related to the taxpayers' farming endeavors, the expenses they incur with regard to that crop are farming expenses. (Cf. Income Tax Reg. secs. 1.61-4(d), 1.182–2, 1.175-3.) Our taxpayers bore that risk and are just as entitled to the tax benefits afforded farmers as if they had raised the trees with their own hands. [440 F.2d at 1057.] We think that under the standard as enunciated in Maple v. Commissioner, supra, petitioner qualified as a farmer in 1973. In Maple the court deemed the key factor to be the bearing of the risk of loss. See also Maple Leaf Farms, Inc. v. Commissioner, 64 T.C. 438, 448 (1975). There is no question that petitioner bore the risks associated with raising his calves from the weaning to the breeding stage, other than loss due to gross negligence attributable to the manager. We believe petitioner herein and his ownership rights in the subject calves satisfy the standard set forth in Maple. As such he is entitled to deduct those costs of maintenance and care associated with the raising of weaned female calves to breeding age. Decision will be entered under Rule 155. SOUND HEALTH ASSOCIATION, PETITIONER V. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT Docket No. 8144-77X. Filed November 13, 1978. Petitioner is a Health Maintenance Organization (HMO) organized as a nonprofit corporation under the laws of the State of Washington. Petitioner is a membership organization. It provides health care services to its members on a prepaid basis, and to nonmembers on a fee-for-service basis. Emergency cases are handled without regard to whether the patient is a member or not and petitioner provides free care, or care at reduced rates, to a limited number of indigent patients per year. Respondent ruled that petitioner was qualified as an organization described in sec. 501(c)(4), but denied petitioner's application to be granted sec. 501(c)(3) status on the grounds that it served a private interest (its members) rather than the required public interest and that it provided a form of insurance. Held: In an action brought under sec. 7428 for a declaratory judgment on petitioner's qualifications as an organization exempt from tax under sec. 501(a) and (c)(3), it is found that petitioner does serve a public interest and is not engaged in providing a form of insurance and is therefore organized and operated exclusively for charitable purposes. Consequently, petitioner qualifies as an organization described in William N. Mathias III, for the petitioner. OPINION STERRETT, Judge: This is an action for declaratory relief brought by petitioner Sound Health Association against respondent Commissioner of Internal Revenue Service under the terms of new section 7428, I.R.C. 1954. Respondent has determined that petitioner qualifies as an organization described in section 501(c)(4), but fails to qualify as an organization described in section 501(c)(3). The only issue before the Court is whether or not petitioner qualifies as an organization described in section 501(c)(3). The administrative record herein (sometimes referred to as the record), which includes all the facts upon which respondent made his final adverse determination, was submitted to this Court under Rule 217(b)(1), Tax Court Rules of Practice and Procedure. The case was submitted to the Court under Rule 122 by joint motion of the parties. The facts and representations contained in the record are assumed to be true for purposes of this proceeding. The administrative record is incorporated herein by this reference. We will summarize the facts we deem relevant to our analysis of the issue at hand. The petitioner (sometimes hereinafter referred to as the Association) is a nonstock, nonprofit corporation organized under the provisions of the Washington State Non-Profit Corporation Act. Wash. Rev. Code ch. 24.03. As a nonprofit corporation, the petitioner cannot, by Washington law, be operated for the personal benefit of any member, officer, or director. Its principal place of business is in Tacoma, Wash., and its articles of incorporation were filed of record on June 26, 1972. Extensive amendments to the articles were adopted on February 20, 1973. Those parts of the articles and their amendments which are material to this action are set forth below. The amendments are set off in italics: 'Hereinafter all references to Rules are to Tax Court Rules of Practice and Procedure. ARTICLE THREE Section 1. Purposes a. To establish and maintain services and facilities for the care of persons suffering from illnesses or disabilities which require that the patients receive in- or out-patient health care. b. To carry on any educational activities related to rendering care to the sick and injured or the promotion of health, which in the opinion of the board of directors, may be justified by the facilities, personnel, funds or other requirements that are, or can be made, available. c. To promote and carry on scientific research related to the care of the sick and injured insofar as, in the opinion of the board of directors, such research can be carried on in, or in connection with its services and facilities. d. To participate, so far as circumstances may warrant, in any activity designed and carried on to promote the general health of the community. e. To promote the general health of the community by making available its services, resources and facilities to those persons who may not be able to pay for services rendered and not exclusively to those who are members of Sound Health Association and/or otherwise able and expected to pay, to the extent of the financial ability of the corporation to do so. Section 2. This corporation is organized exclusively for charitable, scientific and educational purposes as a nonprofit corporation, and its activities shall be conducted for the aforesaid purposes in such a manner that no part of its net earnings will inure to the benefit of any member, director, officer or individual. It shall not be its purpose to engage in carrying on propaganda or otherwise attempting to influence legislation. The corporation shall not participate in, or intervene in (including the publishing or distribution of statements) any political campaign on behalf of any candidate for public office. Notwithstanding any other provision of these articles, this corporation shall not, except to an insubstantial degree, engage in any activities or exercise any powers that are not in furtherance of the purposes of this corporation. Section 3. Upon the dissolution of this corporation the board of directors shall, after paying or making provision for the payment of all the liabilities of the corporation, dispose of all the assets of the corporation exclusively for the purposes of the corporation in such manner, or to such organization or organizations organized and operated exclusively for charitable, educational, religious, or scientific purposes as shall at the time qualify as an exempt organization or organizations under Section 501(c)(3) of the Internal Revenue Code of 1954 (or the corresponding provision of any future United States Internal Revenue law), as the board of directors shall determine. Any of such assets not so disposed of shall be disposed of by the Superior Court of the county in which the principal office of the corporation is then located, exclusively for such purposes or to such organization or organizations, as said court shall determine, which are organized and operated exclusively for such purposes. ARTICLE FOUR Section 1. General Powers of this Corporation f. To lend money to its employees other than its officers and directors. m. [This subsection was deleted.] To establish and maintain reserve, equity, surplus or other funds, and to provide for the time, form and manner of distribution of such funds among members, shareholders or other persons with interests therein in accordance with the articles of incorporation. Section 1. Members ARTICLE FIVE Public and private organizations and individuals interested in the objectives and purposes of SOUND HEALTH ASSOCIATION shall be eligible for membership as voting members and/or as non-voting associate members as provided in the By-Laws. No person shall be denied membership because of race, creed, sex, national origin or political conviction. Section 2. Directors a. The affairs of this corporation shall be managed by a board of directors of not fewer than three (3) nor more than twenty-six (26) directors. Directors shall be selected in the manner and for the terms provided in the By-Laws. b. The members who appointed or elected a director may remove him at any regular meeting of such members or at any special meeting of such members called for that purpose, if notice has been given as hereinafter provided. A member who desires to propose the removal of a director shall notify the Secretary of the Association at least twenty (20) days before the meeting. The notice shall identify the director whose removal will be considered and briefly state the grounds for removal. The Secretary shall distribute the notice to all members entitled to vote on the removal. Absence from three (3) consecutive regular board meetings shall automatically create a vacancy unless excused by the board. * ARTICLE SEVEN [This Article, which lists the Association's board of directors, was amended by striking the last paragraph thereof which had said:] The said directors are the only voting members of this corporation. Committee chairmen of the corporation's working committees may become voting members of the corporation by a two-thirds (2/3) majority vote of the voting members of the corporation. ARTICLE NINE [This Article was deleted in its entirety.] On dissolution of this corporation, the assets of this corporation may only be distributed to corporations or associations engaged in identical purposes and objectives as this corporation, and such distributees must have and enjoy identical state and federal tax exempt status as this corporation has and enjoys at the time of such distribution. The Association's bylaws provided, as of January 18, 1973, in relevant part as follows: PREAMBLE (a) The purpose of Sound Health Association is to promote the maintenance of optimal personal health by making available to the residents of the community comprehensive personal health care services and resources aimed at preventing and curing specific diseases, reducing debilitation and discomfort, and improving individual health behavior, in a manner which is responsive to the needs and desires of the persons being served, and which reduces the impact of cost as a barrier to securing needed resources and services. (b) The services and resources will be made available without regard to race, creed, sex or national origin and the Association shall further extend its services to the economically disadvantaged and medically underserved population of Pierce County to the maximum extent practicable. (c) This Association shall place special emphasis on preventive medicine and health education programs conducted as a community service for the benefit of non-members as well as members. (d) This Association shall also place special emphasis on the acquisition or construction of comprehensive health care facilities which shall be available to the economically disadvantaged and medically underserved as well as members of the Association. ARTICLE I Section 1. Classifications of Membership There shall be three (3) classifications of membership: (1) individual family membership, (2) group membership, and (3) Directors who are not family or group members. No person shall be denied membership because of race, color, religious belief or political convictions. (a) Family Membership. Family membership shall be open to individual adults and their dependents upon application to the Association and approval of such application on such terms and conditions as the Board, acting on behalf of the Association, may establish. Family membership shall be further conditioned upon the payment of capital dues in an amount to be determined by the Board, which shall be dedicated solely to the acquisition or construction of facilities of the |