Public Charities, Private Foundations and the Public Support Test

Originally published on July 17, 2025

Starting a nonprofit organization? 🚀 One of the most critical decisions is understanding your classification: Public Charity or Private Foundation. This affects your fundraising strategy, IRS compliance, donor relationships, and how your nonprofit operates in the long run.

In this video, we break down:

🔍 What is a Public Charity?
🏦 What is a Private Foundation?
📊 What is the Public Support Test?
🕔 What the Five-Year Grace Period means for new nonprofits
💡 How to avoid reclassification and stay compliant

Whether you’re starting a 501(c)(3), navigating IRS rules, or trying to understand how to maintain public charity status—this video is your go-to guide.

✅ Learn how public charities raise funds, why private foundations follow stricter IRS rules, and how the public support test determines your classification.

👨‍💼 Great for nonprofit founders, board members, executive directors, and fundraising professionals.

👉 Don’t forget to like, subscribe, and turn on notifications for more videos on nonprofit strategy, compliance, and funding!

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🌎 James Moore Nonprofit CPAs and Advisors: https://www.jmco.com/industries/nonprofit/
🤝 Nonprofit Accounting Articles on JMCO.com: https://www.jmco.com/articles/nonprofit/

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