The Let's Read organization is a public charity under Internal Revenue Code (IRC) Section 501(c)(3). It had total support of the following: United Way support $10,000 Grant from state 25,000 Grant from city 10,000 Contributions from individuals 261,000 Investment income 1,000 Revenue from sale of books 12,000 _______ Total $319,000

Of the $261,000 received from contributors, $240,000 came from four contributors, each giving $60,000; the other $21,000 came from small individual contributions.

Respond to the following:

• Calculate the total amount of support that qualifies as public support in meeting the public support test to escape private foundation status.
• Is the organization considered a public charity? Why?
• If the organization had received $200,000 from one individual and the remaining $61,000 from many small individual contributions, would the not-for-profit (NFP) entity still be classified the same as in your response to the second bullet point?