Status quo – How to keep your “public charity” designation

Description

Abstract: A public charity that wishes to retain its 501(c)(3) tax-exempt status in future years must take specific actions and avoid certain activities. Foremost, after the first five years of existence, it must demonstrate through Schedule A of Form 990 that it meets the support test qualifying it as a public charity. This article describes Schedule A requirements and lists five types of activities that can jeopardize exempt status. A sidebar shows how a new organization can obtain public charity status.