Blue, Inc., receives its support from the following sources. $\begin{array}{lr}
\text { Governmental unit A for services rendered } & \$ 18,000 \
\text { General public for services rendered } & 25,000 \
\text { Gross investment income } & 8,000 \
\text { Contributions from individual disqualified persons } & 19,000
\end{array}$ Which of the following statements is correct?
A) Blue is a private foundation because it satisfies the external support test and fails the internal support test.
B) Blue is not a private foundation because it fails both the internal and external support tests.
C) Blue is a private foundation because it satisfies both the external support test and the internal support test.
D) Blue is not a private foundation because it satisfies both the external support test and the internal support test.

Question

Quizplus · Accepted Answer

Blue, Inc. is not a private foundation because it satisfies both the external and internal support tests, indicating it has a broad base of support and does not rely heavily on a limited number of donors, which are key criteria for not being classified as a private foundation. Contributions from disqualified persons are less than one-third of the total support, and the organization receives significant support from governmental units and the general public.

Blue, Inc, Receives Its Support from the Following Sources Which of the Following Statements Is Correct? A) Blue Is

Blue, Inc, Receives Its Support from the Following Sources Which of the Following Statements Is Correct?
A) Blue Is