3 ms·
US public charities (which means donations from the public are tax-deductable) are limited in the percentage of their income they can receive from private found
by enduser 14y ago
US public charities (which means donations from the public are tax-deductable) are limited in the percentage of their income they can receive from private foundations and families. The amount of the large donation may have been contingent upon receiving enough funds from a broader base of sources. Too large of a donation could have caused the FreeBSD Foundation to fail their public support test for the year and be reclassified as a private foundation.
IANAL, but I am the chairman of a 501(c)(3)
- cperciva 14y agoI don't think that's a problem here. I've been looking at the donors list and the sizes of donations for the past few months with an eye to where the public support test ends up, and by my arithmetic they could have given the $250k earlier in the year without ever putting the Foundation at risk of failing the public support test. For what it's worth: Over the 2008-2012 window, the 2%-of-total-support cap on the amount of each donor's contribution which counts as "public" is currently at almost $40k; and there are five donors (Anonymous, NetApp, Hudson River Trading, iXsystems, and Google) which are currently above that limit. As a result, each new dollar donated by someone not on that list else counts as $1.10 towards the "public support" amount, since it increases by 5 x $0.02 the amount of "public support" from those five largest donors, in addition to the $1 itself counting as public support.