Organizations must meet the following two tests in order to qualify as charitable tax-exempt organizations under IRC Sec. 501 (c)(3). Private foundations test and public charities test Organizational test and operational test Public support test and investment income test Question 7 One of the three principal categories of Public Charities is Organizations that meet both of the mechanical tests on actual support during the previous four years. Organizations that do not receive a substantial portion of support from direct or indirect contributions from the general public or from a governmental unit. Supported organizations