Where Form 990 Schedule H 2023-2024

This tutorial is a project of Nonprofit Accounting Basics Org, a free resource developed by the Greater Washington Society of CPAs Educational Foundation. Our goal is to encourage accuracy and accountability to help smaller nonprofits successfully manage and sustain their organizations. Hello, I'm LAN Musselwhite. Today, we're going to be discussing the public support test and scheduled aid to Form 990. The public support test has great significance, particularly to public charities, because there are two types of 501(c)(3)s: public charities and private foundations. Only public charities must be concerned with the public support test, and the significance is rather dramatic. In order to maintain its status as a public charity, most organizations have to pass the public support test. If they fall into the private foundation category, they could be subject to a payout requirement, different penalties, and have to file different tax returns (the 990-PF for private foundations and the 990 for public charities). The types of organizations as to whether they are public charities or private foundations are not optional. They are the result of a mathematical test. Some public charities are exempt from this test because they are deemed to be a public charity. This would be the case if they were a school, hospital, or church. For the rest of them, they're going to have to pass this test every year. Most organizations are clearly one or the other - they either pass the test easily or they don't. But if you are right on the line, it becomes very important that you know exactly how the test works and what your percentage is. The public support test is a fraction. The numerator represents certain kinds of public support subject to caps, and the denominator represents the total support received. The calculation is done over...