December 16, 2007
The Thirty Three and a Third Test is Not the Only Way to Public Charity Status
A story in yesterday's Greenville (North Carolina) Reflector, provides useful fodder for classroom discussion of the IRC 170(b)(1)(A) requirements to acheive "public charity" status. The story relates the struggles of a small charity to achieve the 33 1/3 percent of support test and states that if the organization fails to meet that test it will be subject to the burdensome private foundation rules. Although the facts given indicate the organization might meet the 10% test in Treas. Reg. 1.170A-9(e)(3), the author makes no mention of that potential solution. Maybe some of our throngs of North Carolina readers should post a comment to the story on the newspaper's website. In class, of course, the article could be used to stimulate a discussion of what other things the organization might assert in support of its public charity status using the 10% test.
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