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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
would be effective, to the end of the year in which the
contributions were received. This total amount contributed must
also be more than 2% of all the contributions you received. A
creator of a trust is treated as a substantial contributor
regardless of the amount contributed.
For more information regarding substantial contributors, go to
IRS.gov/SubstantialContributor.
Family members. A “member of the family” includes the
spouse, ancestors, children, grandchildren, great-grandchildren,
and their spouses.
For additional information concerning members of the family,
go to IRS.gov/FamilyMembers.
Further information about disqualified persons can be
obtained at IRS.gov/DisqualifiedPerson.
General public. For the purposes of determining your
foundation classification, the term “general public” includes any
person who is not a disqualified person.
Governmental unit. Governmental unit means a state, a
possession of the United States, or a political subdivision of a
state or U.S. possession, the United States, or the District of
Columbia. Treat taxes levied on your behalf that are paid to or
spent on your behalf as being from a governmental unit. In
addition, if a governmental unit provides services or facilities to
you without charge, and it does not provide those services or
facilities to the public without charge, you should treat the value
of those services and facilities as being from a governmental
unit.
Public charity. An organization described in section 501(c)
(3) that makes a gift, grant or contribution to you, or pays
exempt-service revenues to you, should inform you of its
foundation classification.
Foundation classification tests. Lines 2a, 2b, 2c, and 3 each
uses a different test. The specific test for each line is explained
below.
You may only check one box in Line 2.
As an alternative to the tests described below, you can use
the more detailed support calculations in Schedule A (Form 990
or 990-EZ), Part II (for Line 2a, or Line 2c), or Part III (for
Line 2b).
If the IRS approves your application and you are
classified as a public charity, then any year that you
must file Form 990 or Form 990-EZ, you will use
Schedule A (Form 990 or 990-EZ), to confirm that you continue
to satisfy the section 509(a)(1) or 509(a)(2) public support test.
See
Annual Filing Requirements, earlier.
Line 1. Check “Yes” if you are applying for recognition as a
church, school, or hospital (as described in section 170(b)(1)(A)
(i), (ii), or (iii)). Also see questions 12 through 14 on the Form
1023-EZ Eligibility Worksheet. If you are seeking recognition as
a church, school, or hospital, you are not eligible to use Form
1023-EZ and should instead submit Form 1023 if you wish to
obtain a determination letter from the IRS. However, churches
(including synagogues, temples, and mosques) and integrated
auxiliaries of churches and conventions or associations of
churches may be considered tax exempt under section 501(c)(3)
even if they do not file Form 1023.
Check “No” if you are not applying for recognition as a
church, school, or hospital (as described in section 170(b)(1)(A)
(i), (ii), or (iii)).
Line 2a. Check this box if after completing Steps 1–7 below,
you meet the requirements for the 509(a)(1) public support test.
Use the calculation below to determine whether you can
check Line 2a. For the calculations below, combine revenues for
the most recent 5-year period. If you are a new organization,
base your calculation on revenues you have actually received
since your formation as well as revenues you anticipate you will
receive over the first 5 years of your existence. You can also use
this support calculation for Line 2c.
Step 1. Total all gifts, grants, and contributions (including
those from governmental units and public charities). Don’t
include exempt-activity revenues and unusual grants.
Step 2. Multiply the amount from Step 1 by 2% (0.02). This is
your 2% threshold amount. Gifts, grants, or contributions from
persons other than governmental units and public charities can
be treated as public support only up to the 2% threshold.
Step 3. Excluding gifts, grants, and contributions from
governmental units and public charities, add together
contributions of any person that exceed the 2% threshold
amount calculated in Step 2.
Example. If the amount in Step 1 is $150,000, the 2%
threshold is $3,000. If, over the 5-year period, one individual
donor gave $4,000, another individual donor gave $3,250, and
the rest of the donors gave $3,000 or less, the amount
calculated for Step 3 will be $1,250, which is ($4,000 minus
$3,000) plus ($3,250 minus $3,000).
Step 4. Subtract the amount calculated in Step 3 from the
amount calculated in Step 1. This is your 509(a)(1) public
support amount.
Step 5. Calculate the total of your unrelated trade or business
revenues, and investment income. Don’t include exempt-activity
revenues and unusual grants.
Step 6. Add the amount from Step 1 to the amount from Step
5. This is your 509(a)(1) total support amount.
Step 7. Divide your 509(a)(1) public support amount
(calculated in Step 4) by your 509(a)(1) total support amount
(calculated in Step 6).
•
If the result is at least 33
1
/3%, you satisfy the 509(a)(1)
public support test and should check the box on Line 2a.
•
If the result is less than 33
1
/3%, but is at least 10%, you
might satisfy the public support test for Line 2a (or Line 2c)
based upon a “facts and circumstances” test. An
organization with public support between 10% and 33
1
/3%
must be organized and operated in a way that will attract
new and additional public or governmental support on a
continuous basis. The following factors are taken into
account in determining whether an organization that meets
the 10% public support requirement and is organized and
operated to attract new and additional public support may
qualify as publicly supported for the purposes of section
509(a)(1).
a. The percentage of financial support the organization
receives from the general public, governmental units, or
public charities (the higher the percentage, the lower the
burden of meeting the other factors).
b. Whether the organization receives support from a
representative number of persons.
c. All other facts and circumstances, including the public
nature of the organization’s governing body, the extent to
which its facilities or programs are publicly available, the
extent to which its dues encourage membership, and
whether its activities are likely to appeal to persons having a
broad common interest or purpose.
For additional information about the “facts and circumstances”
test, see Pub. 557 and Regulations section 1.170A-9(f)(3).
Note. If you do not satisfy the section 509(a)(1) public support
test, but you receive most of your support in the form of
exempt-activity receipts, continue to the section 509(a)(2) public
support test for Line 2b.
Line 2b. Use the following public-support calculation if you did
not satisfy the section 509(a)(1) public support test and you wish
-10-
Form 1023-EZ Instructions