Exempt Organizations Annual Reporting Requirements - Form 990, Schedules A and B: Organization May Be Publicly Supported Under One of Two Tests


My determination letter from the IRS states that my organization is a public charity under sections 509(a)(1) and 170(b)(1)(A)(vi). However, my organization can no longer meet the public support test under those sections on Part II of the Schedule A. Can my organization try to qualify as a public charity under section 509(a)(2) by calculating its public support on Part III of the Schedule A?

Yes.  Parts II and III of Schedule APDF provide the computation area to establish that your organization meets a public support test and is not a private foundation pursuant to either sections 509(a)(1) and 170(b)(1)(A)(vi) of the Internal Revenue Code or section 509(a)(2).  Regardless of the public support section specified in your original determination letter, your organization may choose the public support test that best reflects your sources of support and that results in your retaining your public charity status.  In particular, if your organization receives a large amount of gross receipts from fundraising activities, you should consider filing as a section 509(a)(2) organization.

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