Introduction In the prior post in this series, we examined the 33⅓% public support test and the 2% limitation rule governing donor-supported public charities under Section 170(b)(1)(A)(vi) of the Internal Revenue Code (“IRC”). However, many nonprofits are supported by earned revenue including program fees, and memberships. This article turns to a distinct framework, the public …
In the prior post in this series, we explored how the IRS measures public support, including the five-year computation period and the distinction between public support and total support. With that framework in place, this article turns to the most widely applicable compliance threshold for donor-supported public charities: the 33⅓% public support test and the …
Casting Society of America (“CSA”) is a global membership organization of casting professionals dedicated to upholding the highest standards of casting within the entertainment industry. CSA celebrates the diverse craft of casting by educating and advocating on behalf of the industry, celebrating the achievements of the casting community, and empowering casting professionals to tell the …
Orange County’s United Way (“OC United Way”) is a human services organization that invests in the communities it serves by delivering education, financial security, and housing programs throughout Orange County, California. OC United Way also operates 211OC, a basic needs referral hotline accessed by over a hundred and thirty thousand residents a year. The Law …
The Santa Barbara Foundation (“Foundation”) is a community foundation established in 1928 to serve the needs of the people of Santa Barbara County, California. With nearly a billion in assets, the Foundation offers a variety of giving vehicles, engages in grantmaking, and leads initiatives across multiple basic needs and equitable opportunity focus areas. The Foundation’s …
After identifying whether an organization is a “Donor-Supported” entity (Section 170(b)(1)(A)(vi)) or a “Related Revenue” entity (Section 509(a)(2)), which determines which public support rules apply to an organization, the next critical question is how public support is measured. Many nonprofit leaders are surprised to learn that public support is not evaluated on a year-by-year basis, …
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