Public Support Test
/ˈpʌblɪk səˈpɔrt tɛst/
Definitions
- (n.) A standard used by tax and nonprofit authorities to determine if an organization receives a substantial portion of its support from the general public, qualifying it for public charity status rather than private foundation status.
The charity passed the public support test by proving that more than one-third of its funding came from donations and grants.
Forms
- public support test
Related terms
See also
Commentary
The public support test is crucial for nonprofit classification under IRS rules, impacting tax treatment and reporting requirements.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.