Public Charity. The Kids Club of Clare County is a public charity under IRC Sec. 501 (c) (3). It had total support last year of the following:
United Way support $80,000
Grant from dare County 70,000
Contributions 350,000
Investment income 75,000
$575,000
Of the $350,000 received from contributors. $250,000 came from five contributors, each of whom gave more than $5,000: the other $100,000 came from small individual contributors.
Required
a. Calculate the total amount of support that qualifies as “public support” in meeting the external support test to escape private foundation status.
b. Is the organization considered a public charity or a private foundation? Why?
c. If the organization had received an additional $140,000 grant from one individual during the year, would the NPO still be classified the same as in your response to part b (assuming that the previous five gifts still represent more than I percent of the new total)?