Which of the following organizations is most likely to be classified as a Private Foundation rather than a Public Charity?

Answer options:

A church.

A hospital.

A 501(c)(3) organization funded by a single family to make grants to other charities.

An organization that receives >1/3 of its support from the general public.

How to approach this question

Default is Private Foundation. To be Public, you must be a Church/School/Hospital OR pass the Public Support Test (money comes from many people).

Full Answer

C.A 501(c)(3) organization funded by a single family to make grants to other charities.✓ Correct

Organizations that do not meet the definition of a public charity (broad public support or specific type like church/school) are classified as private foundations. A family-funded grant-making entity is the classic private foundation.

Common mistakes

Thinking all 501(c)(3)s are public charities.

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