005: Nonprofit Basics: Navigating the Complex Rules That Describe a Public Charity

Welcome to EO Radio Show. This nonprofit basics episode is intended to help a founder of a new charity to navigate the complex rules that describe a public charity. Many people think that the designation 501c3 means an organization is a charity, but there is more to it than that. In this episode, we'll talk about the IRS classifications that distinguish between a public charity and a private foundation. We'll talk about the four basic paths to public charity status and try to dispel some of the mysteries surrounding what it means to be recognized by the Internal Revenue Service as a public charity. Then, we'll close with some tips for a new organization that intends to qualify for public charity status based on fundraising from the public or, alternatively, primarily from generating income from their exempt function. If you have suggestions for topics you would like us to discuss, please email us at [email protected]. Additional episodes can be found at EORadioShowByFarella.com.  Resources:  Exempt Organization Types:  https://www.irs.gov/charities-non-profits/exempt-organization-types Schedule A, Public Charity Tests: https://www.irs.gov/pub/irs-pdf/f990sa.pdf Instructions to Schedule A: https://www.irs.gov/pub/irs-pdf/i990sa.pdf The Wonderful World of Foundation Classification: https://www.stayexempt.irs.gov/home/depth-topics/wonderful-world-foundation-classification and  https://www.stayexempt.irs.gov/se/files/downloads/FoundationClassification_Print.pdf  Internal Revenue Code Sections: https://www.law.cornell.edu/uscode/text/26/509  https://www.law.cornell.edu/uscode/text/26/170 DISCLAIMER: This podcast is for general informational purposes only. It is not intended to be, nor should it be interpreted as, legal advice or opinion.