Nonprofit Basics: Navigating the Complex Rules That Describe a Public Charity

Farella Braun + Martel LLP
Contact
Welcome to EO Radio Show. This nonprofit basics episode is intended to help a founder of a new charity to navigate the complex rules that describe a public charity. Many people think that the designation 501(c)(3) means an organization is a charity, but there is more to it than that.

In this episode, we'll talk about the IRS classifications that distinguish between a public charity and a private foundation. We’ll talk about the four basic paths to public charity status and try to dispel some of the See more +

Welcome to EO Radio Show. This nonprofit basics episode is intended to help a founder of a new charity to navigate the complex rules that describe a public charity. Many people think that the designation 501(c)(3) means an organization is a charity, but there is more to it than that.

In this episode, we'll talk about the IRS classifications that distinguish between a public charity and a private foundation. We’ll talk about the four basic paths to public charity status and try to dispel some of the mysteries surrounding what it means to be recognized by the Internal Revenue Service as a public charity. Then, we’ll close with some tips for a new organization that intends to qualify for public charity status based on fundraising from the public or, alternatively, primarily from generating income from their exempt function.

Resources:

Exempt Organization Types: https://www.irs.gov/charities-non-profits/exempt-organization-types

Schedule A, Public Charity Tests: https://www.irs.gov/pub/irs-pdf/f990sa.pdf

Instructions to Schedule A: https://www.irs.gov/pub/irs-pdf/i990sa.pdf

The Wonderful World of Foundation Classification:

https://www.stayexempt.irs.gov/home/depth-topics/wonderful-world-foundation-classification and

https://www.stayexempt.irs.gov/se/files/downloads/FoundationClassification_Print.pdf

Internal Revenue Code Sections:

https://www.law.cornell.edu/uscode/text/26/509

https://www.law.cornell.edu/uscode/text/26/170

If you have suggestions for topics you would like us to discuss, please email us at eoradioshow@fbm.com.

Additional episodes can be found at www.EORadioShowByFarella.com. See less -

Embed
Copy

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Farella Braun + Martel LLP | Attorney Advertising

Written by:

Farella Braun + Martel LLP
Contact
more
less

Farella Braun + Martel LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.