The Let's Read organization is a public charity under IRC section 501(c)(3). It had total support of the following:

United Way support	$	9,200
Grant from the state		23,900
Grant from the city		9,000
Contributions from individuals		259,900
Investment income		1,900
Revenue from the sale of books		10,800
	$	314,700

Of the $259,900 received from individuals, $238,800 came from four contributors, each of whom gave $59,700; the other $21,100 came from small individual contributions.

Required

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?

multiple choice 1

Yes

No

c-1. If the organization had received $195,000 from one individual, and the remaining $64,900 from many small individual contributions, calculate the total amount of support that qualifies as public support in meeting the public support test to escape private foundation status.

c-2. If the organization had received $195,000 from one individual, and the remaining $64,900 from many small individual contributions, would the NFP still be classified the same as in your response to part b?

multiple choice 2

Yes

No

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