Question
The Let's Read organization is a public charity under IRC Sec. 501(c)(3). It had total support of the following United Way support $ 9,800 Grant
The Let's Read organization is a public charity under IRC Sec. 501(c)(3). It had total support of the following
| |||
United Way support | $ | 9,800 | |
Grant from the state | 24,700 | ||
Grant from the city | 9,900 | ||
Contributions from individuals | 260,700 | ||
Investment income | 1,000 | ||
Revenue from the sale of books | 10,200 | ||
$ | 316,300 |
Of the $260,700 received from contributors, $239,700 came from four contributors, each of whom gave $59,925; the other $21,000 came from small individual contributions. |
|
Required | ||
a. | Calculate the total amount of support that qualifies as public support in meeting the public support test to escape private foundation status. | |
|
| |
b. | Is the organization considered a public charity? | |
c-1. | If the organization had received $200,000 from one individual, and the remaining $60,700 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 $200,000 from one individual, and the remaining $60,700 from many small individual contributions, would the NFP still be classified the same as in your response to part b? |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started