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

A § 501(c)(3) organization that would otherwise be classified as a private foundation can avoid such classification if it satisfies both an external support test and an internal support test. The external support test requires that the organization receive at least one-third of its support from the general public or from government grants, and the internal support test requires that the organization be supported by a broad base of individuals, rather than a few large donors.

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