A community foundation meets the public support test set forth in Internal Revenue Code Section 170(b)(1)(A)(vi) as modified by Treasury Regulation Section 170A-9(e)(10).
Mission, Structure and Governance - Standard II. Part C.

The Standard

A community foundation meets the public support test set forth in Internal Revenue Code Section 170(b)(1)(A)(vi) as modified by Treasury Regulation Section 170A-9(e)(10).

Underlying Rationale

In order for donors to enjoy the most beneficial tax treatment for their contributions, the community foundation must receive a certain portion of its annual support from multiple individuals and organizations. Meeting this "public support test" is a clear demonstration that the community foundation enjoys broad public acceptance and support and is not controlled by a small group of donors. Building a strong endowment and administering a collection of funds are fundamental aspects of being a community foundation. Satisfaction of the public support test under section 170(b)(1)(A)(vi) shows that donor support is from gifts rather than program revenue. This classification also allows the community foundation to maximize the amount of investment income it can earn without jeopardizing its exempt status.

Potential Outcomes

Outcomes being developed.