Question: Please help me answer this questions - Thanks The Let's Read organization is a public charity under IRC Sec. 501(c)(3). It had total support of

Please help me answer this questions - Thanks

The Let's Read organization is a public charity under IRC Sec. 501(c)(3). It had total support of the following:

United Way support

$

9,800

Grant from the state

24,700

Grant from the city

9,900

Contributions from individuals

260,700

Investment income

1,000

Revenue from the sale of books

10,200

$

316,300

Of the $260,700 received from contributors, $239,700 came from four contributors, each of whom gave $59,925; the other $21,000 came from small individual contributions.

Required

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?

c-1.

If the organization had received $200,000 from one individual, and the remaining $60,700 from many small individual contributions, calculate the total amount of support that qualifies as public support in meeting the public support test to escape private foundation status.

c-2.

If the organization had received $200,000 from one individual, and the remaining $60,700 from many small individual contributions, would the NFP still be classified the same as in your response to part b?

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