Because grants to a Type III non-functionally integrated supporting organization are subject to more restrictive rules, private foundations and donor-advised funds interested in making grants to supporting organizations need to know whether the supporting organization is a Type III non-functionally integrated supporting organization).

In determining the classification (including Type of supporting organization) of a public charity, a foundation or sponsoring organization generally may rely on:

  • Information about the organization provided in Tax Exempt Organization Search;
  • Information from the IRS Business Master File (“BMF”) downloaded from the IRS website or obtained from a third party, if certain requirements are met (see section 4 of Revenue Procedure 2011-33); or
  • The grantee’s current IRS letter recognizing the organization as tax-exempt and indicating its public charity classification.

However, a grantor may not rely on such information to the extent that:

  • The IRS has provided public notice that the organization’s status has changed; or
  • The grantor had knowledge of the change of status prior to such publication, or was in part responsible for, or was aware of, the act or the failure to act that gave rise to such change of status.

Additional information