(i) making distributions to organizations that qualify as exempt organizations under section 501(c)(3) of the internal revenue code and under section 11.18 of the texas TAX code and (II) engaging in charitable activities within the meaning of section 501(c)(3) that are designed to combat rural and urban poverty by aiding charitable organizations that provide educational programs, hygiene instruction, vocational training and spiritual programs and to promote better and higher levels of education by funding schools for the acquisition of equipment and the construction of facilities.