Reliance Criteria for Private Foundations and Sponsoring Organizations that Maintain Donor Advised Funds
Revenue Procedure 2011-32 provides guidance to help private foundations and sponsoring organizations of donor advised funds determine if a potential grantee is a public charity under Code section 509(a)(1), (2), or (3). Grantors may rely on this guidance in good faith for purposes of the excise taxes imposed on grants to certain supporting organizations under Code sections 4942, 4945, and 4966.
In determining whether a public charity is classified under section 509(a)(1), (2), or (3), a foundation or sponsoring organization may rely on either:
The organization's listing on Exempt Organizations Select Check (Pub. 78 data) as being an organization eligible to receive tax-deductible contributions
The grantee’s current IRS letter recognizing the organization as tax-exempt and indicating its public charity classification; or
Information from the IRS Business Master File (“BMF”) downloaded from the IRS website or obtained from a third party, provided certain requirements are met.