Tax Planning and Compliance for Tax-Exempt Organizations, 6th Edition

CHAPTER 11Public Charities

• 11.1 Distinctions between Public and Private Charities
• 11.2 “Inherently Public Activity” and Broad Public Support: §509(a)(1)
  • (i) 60-Month Termination Issues
  • (a) Churches
  • (b) Schools
  • (c) Hospitals and Medical Research Organizations
  • (d) College and University Support Organizations
  • (e) Governmental Units
  • (f) Donative Public Charities: §170(b)(1)(a)(vi)
  • (g) Facts-and-Circumstances Test
  • (h) Unusual Grants
• 11.3 Community Foundations
  • (a) Single-Entity Test
  • (b) Component-Part Test
  • (c) Donor Designations versus Donor Directions
  • (d) Public Support Test
  • (e) Impact of Pension Protection Act of 2006
• 11.4 Service-Providing Organizations: §509(a)(2)
• 11.5 Difference Between §509(a)(1) and §509(a)(2)
  • (a) Definition of Support
  • (b) Donations/Grants Not Counted
  • (c) Types of Support
  • (d) Funds Received as Agent
  • (e) Change of Public Charity Category
  • (f) Loss of Public Status
  • (g) Review of New FASB Standards Impact Revenue Recognition for Grants
• 11.6 Supporting Organizations: §509(a)(3)
  • (a) Purpose Clause
  • (b) Specified Public Charities
  • (c) Operational Control Relationship Tests
  • (d) Control by Disqualified Persons
  • (e) Conversion to Private Foundation
  • (f) Noncharitable Beneficiaries
  • (g) Intermediate Sanctions Apply
  • (h) Procedural Issues
• 11.7 Testing for Public Safety: §509(a)(4)

The significance of “public charity” status for organizations tax exempt under Internal Revenue Code (IRC) §501(c)(3) is multifaceted and is of utmost importance to both private and ...