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The Houston Livestock Show and Rodeo™ was organized for charitable, educational and scientific purposes to encourage and promote the breeding, raising and marketing of better livestock and farm products at public fairs and to promote and maintain research and educational functions within the livestock industry. It is the general policy of the Show to utilize, in the fiscal year subsequent to which it is earned, the excess of its revenue over expenses for the furtherance of its exempt purpose, including the granting and/or funding of scholarships, educational endowments, agricultural research projects and other similar programs and the funding of related capital additions and improvements. The funds of the Houston Livestock Show and Rodeo are used exclusively to meet necessary expenses for its upkeep and operation and in furtherance of the exempt purpose of the organization.