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: |
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| United Way support | $ | 9,800 |
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| Grant from the state |
| 24,700 |
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| Grant from the city |
| 9,900 |
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| Contributions from individuals |
| 260,700 |
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| Investment income |
| 1,000 |
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| Revenue from the sale of books |
| 10,200 |
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| $ | 316,300 |
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| 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. |
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| Required | ||
| a. | Calculate the total amount of support that qualifies as public support in meeting the public support test to escape private foundation status. | |
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| 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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