–If an NPO requires a time period in
excess of the current and prior year
to accumulate the funds needed to
acquire capital property that will be used
to achieve its declared exempt activities, its tax-exempt status may not be affected
–Examples include the construction of a new building to replace an existing building when it deteriorates or no longer meets the association's needs or the condo roof referred to earlier
–Potential problem arises regarding how the funds are held while being accumulated