Pigeon, Inc., a 501(c)(3) organization, received support from the following sources. Governmental unit A for services
Question:
Pigeon, Inc., a § 501(c)(3) organization, received support from the following sources.
Governmental unit A for services rendered …………………… $ 6,300
Governmental unit B for services rendered …………………… 4,500
Fees from the general public for services rendered
(Each payment was of $100) ………………………………….. 75,000
Gross investment income ……………………………………… 39,000
Contributions from disqualified persons ……………………… 26,000
Contributions from other than disqualified persons
(Each gift was of $50) …………………………………………. 160,000
Total support ………………………………………………….. $310,800
a. Does Pigeon satisfy the test for receiving broad public support? Why or why not?
b. Is Pigeon a private foundation? Be specific in your answer.
c. Arnold Horn, Pigeon’s treasurer, has asked you to advise him on whether Pigeon is a private foundation. Write a letter to him in which you address the issue. His address is 250 Bristol Road, Charlottesville, VA 22903.
Step by Step Answer:
South Western Federal Taxation 2018 Corporations Partnerships Estates And Trusts
ISBN: 1389
41st Edition
Authors: William H. Hoffman, William A. Raabe, James C. Young, Annette Nellen, David M. Maloney