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Public Charity
Practical Law Glossary Item w-021-9926 (Approx. 2 pages)
Glossary
Public Charity
A type of charitable organization. To qualify as a public charity, a charitable organization must:
- Meet one of following the requirements under Section 509(a) of the Internal Revenue Code. The organization:
- falls within one of the specified categories, such as a church, school, hospital, or medical research institution;
- has broad public support, including from the general public, governmental agencies, corporate foundations, private foundations, or other public charities;
- actively functions to support another public charity; or
- operates exclusively for testing for public safety.
Give timely notice to the IRS that it is not a private foundation.
If the organization does not meet these requirements, it is classified as a private foundation. A public charity classification has several benefits over a private foundation, including greater charitable deductions for donors and less restrictive regulations.