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.

Question

Quizplus · Accepted Answer

A § 501(c)(3) organization can avoid being classified as a private foundation if it satisfies both an external support test and an internal support test. These tests are designed to ensure that the organization has a broad base of public support and does not rely too heavily on a limited number of donors.

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