Falling Below the 33.3% Public Support Test?

Falling Below the 33.3% Public Support Test?

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My organization is in jeopardy of falling below the 33.3% public support test. What should I do?


You may still be considered a publicly supported organization if you pass the facts and circumstances test.


10% Support Limitation: The percentage of support normally received by an organization from governmental units, from contributions made directly or indirectly by the general public, or from a combination of these sources, must be substantial. For purposes of this test, an organization will not be treated as normally receiving a substantial amount of governmental or public support unless the total amount of governmental and public support normally received equals at least 10% of the total support normally received by such organization.
Attraction of Public Support: An organization must be organized and operated so as to attract new and additional public or governmental support on a continuous basis. An organization will be considered to meet this requirement if:

  • It maintains a continuous and bona fide program for solicitation of funds from the general public, community, or membership group involved, or;
  • It carries on activities designed to attract support from governmental units or other public charities.

In addition to the facts and circumstances requirements set forth previously, all pertinent facts and circumstances, including the following factors, will be taken into consideration in determining whether an organization is “publicly supported” for purposes of this test. However, an organization is not generally required to satisfy all of the following factors. The factors relevant to each case and the weight accorded to any one of them may differ depending upon the nature and purpose of the organization and the length of time it has been in existence.

  1. Percentage of financial support
  2. Sources of support
  3. Representative governing body
  4. Availability of public facilities or services; public participation in programs or policies
  5. Additional factors pertinent to membership organizations
Pintabone-Mike Mike Pintabone, CPA
[email protected]

Mike Pintabone, CPA, Partner

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To ensure compliance with U.S. Treasury rules, unless expressly stated otherwise, any U.S. tax advice contained in this communication is not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.

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