The Let's Read organization is a public charity under Internal Revenue Code IRS section 501(c)(3). It had a total support of the following. 1. United way support $10,000 2.Grant from state. $25,000 3. Grant from city $10,000 4. Contribution from individuals $261,000 5. Investment income. $1,000 6. Revenue from sales of books $12,000 Total
The Let's Read organization is a public charity under Internal Revenue Code IRS section 501(c)(3). It had a total support of the following.
1. United way support $10,000
2.Grant from state. $25,000
3. Grant from city $10,000
4. Contribution from individuals $261,000
5. Investment income. $1,000
6. Revenue from sales 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.
1. Calculate the total amount of support that qualifies as public support in meeting the public test to escape private foundation status.
2. Is the organization considered a public charity ?why?
3. If the organization had received $200,000 from one individual and the remaining $61,000 from many small individual contribution, would the not-for-profit (NFP) entity still be classified the same as in your response to the second bullet point?
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