A § 501(c)(3) organization that otherwise would be classified as a private foundation can avoid such classification if
It satisfies:
A) Only an external support test.
B) Only an internal support test.
C) Both an external support test and an internal support test.
D) An external support test, an internal support test, and a good faith test.
E) None of the above.

Question

Quizplus · Accepted Answer

To avoid being classified as a private foundation, a § 501(c)(3) organization must satisfy both an external support test and an internal support test. The external support test requires that the organization obtain a substantial portion of its financial support from public sources, such as gifts, grants, and donations from individuals, corporations, and other organizations. The internal support test requires that the organization's governing body be primarily composed of individuals who are not insiders, such as founders, major donors, or their family members.

A § 501(c)(3) Organization That Otherwise Would Be Classified as a Private