The formulas
- Line 4 = gifts, grants and contributions + tax revenues + free governmental services
- Total support (line 11) = line 4 + gross investment income + net unrelated business income + other income
- Excess contributions = each donor's 5-year total above 2% of total support
- Public support % = (line 4 - excess) / total support, reported to the nearest hundredth
How it works
Schedule A Part II measures support over a 5-year period. Each donor's contributions count as public support only up to 2 percent of total support; the excess comes out on line 5. Contributions from governmental units and from publicly supported organizations are not limited, so enter only donors the 2 percent rule applies to, treating related persons as one donor. Gross receipts from related activities (line 12) are not part of total support in Part II.
An organization whose public support percentage is 33 1/3 percent or more qualifies for the current and next year. At 10 percent or more it can still qualify if it meets the facts-and-circumstances test in Regulations section 1.170A-9(f)(3), explained in Part VI. The tool does not remove unusual grants; take them out of line 1 before you enter the total.
Illustrative figures only. Check the result against your firm's methodology before relying on it.
Common questions
Does a large government grant reduce my percentage?
No. Support from governmental units is not subject to the 2 percent limit and counts in full as public support.
When does the test first apply?
An organization in its first five years as a section 501(c)(3) checks line 13 and does not compute the test; it computes it for the sixth year using the first five years.
Sources
Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.