What is the difference between a public charity and a private foundation in the 501(c)(3) section?
The difference can be very complicated and more information can be found in the IRS Publication 557 http://www.irs.gov/pub/irs-pdf/p557.pdf When you file form 1023, in order to be a 501(c)(3) nonprofit organization, you must decide if you want to be a private foundation or a public charity. The Internal Revenue Code will consider your 501(c)(3) nonprofit as a private foundation unless you show that the organization is one of the four basic categories of public charities described in section 509(a)(1)-(4) of the Internal Revenue Code. http://www.law.cornell.edu/uscode/html/uscode26/usc_sec_26_00000509—-000-.html The four categories of public charities are described below. You can find additional information on the IRS Internet site at http://www.law.cornell.edu/uscode/html/uscode26/usc_sec_26_00000509—-000-.html • 509(a)(1) This category includes churches, schools, hospitals and medical research organizations and governmental units. Another category is called publicly supported orga
