Natalya Attestatova, CPA

Second Exception: Publicly Supported Organizations

March 27th, 2010

To qualify under this exception for a public charity status, two tests must be met:

1. public support test (different from the First Exception: Traditional Public Charity) – in the prior 4 years, the organization must have received more than 1/3 of its total support from any combination of:

• qualifying gifts, grants, contributions or membership fees, AND
• gross receips from admissions, sales of merchandise, performance of services or other activities related to its exempt functions.

2. investment income test – total of the organization’s investment income and net unrelated business income is NOT MORE than 1/3 of the total support.

Entry Filed under: Non-Profit Organizations