The Help the City’s Children organization is a public charity under IRC Sec. 501(c)(3). It had total support of the following:
United Way support ........ $ 40,000
Contribution from the city ..... 30,000
Contributions from individuals ..... 350,000
Investment income ........ 70,000
$ 490,000
Of the $350,000 received from contributors, $300,000 came from five contributors, each of whom gave more than $10,000; the other $50,000 came from small individual contributors.

a. Calculate the total amount of support that qualifies as “public support” in meeting the public support test to escape private foundation status.
b. Is the organization considered a public charity? Why?
c. If the organization had received the $300,000 from one individual (rather than five individuals), would the NFP still be classified the same as in your response to part b?

  • CreatedJanuary 11, 2014
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