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Free public-support comparison

Which public charity classification fits your nonprofit?

509(a)(1) generally centers on public donations and grants. 509(a)(2) can also count qualifying membership fees and revenue from activities that further your exempt purpose. Your result depends on where the money comes from, how concentrated it is, and the types of revenue involved—not simply which category is largest.

Based on the current Form 1023-EZ instructions. Reviewed July 14, 2026.

Classification finder

Compare both simplified calculations

Organize the revenue your nonprofit has received or reasonably expects over the relevant five-year period. The finder shows the amounts it adjusted and identifies missing or uncertain information before presenting a candidate classification.

1. Revenue period

A new organization includes actual revenue and what it reasonably anticipates during its first five years. An established organization uses the applicable actual five-year figures.

2. Gifts, grants, and contributions

Enter governmental-unit and public-charity support separately. Add each other donor so the finder can apply the 509(a)(1) 2% limit.

Government and public-charity support

Other contributions

3. Membership and exempt-purpose activity revenue

Separate dues paid mainly to support the organization from membership payments that provide admissions, goods, services, or facilities. Add each payer so insider exclusions and applicable payer limits can be checked.

Membership fees

Exempt-purpose activity receipts

4. Investment and unrelated-activity revenue

Investment income

Unrelated-activity revenue

5. State or municipal college question

Why your foundation classification matters

Every 501(c)(3) has a foundation classification and is generally treated as a private foundation unless it qualifies for a public-charity exception. Form 1023-EZ requires you to choose the one Part IV classification that fits your organization. This finder compares the two common publicly supported classifications.

Reviewed July 14, 2026, using the January 2025 Instructions for Form 1023-EZ. Review again by January 31, 2027, or sooner if the IRS publishes revised Form 1023-EZ or Schedule A instructions.

How the 509(a)(1) calculation works

Section 509(a)(1), together with section 170(b)(1)(A)(vi), generally fits organizations supported by gifts, grants, and contributions from public sources. Program-service receipts are not included in this contribution total. Under the simplified Form 1023-EZ calculation, qualifying public support of at least 33 1/3% meets the main test.

Large private donations receive limited credit

For this calculation, a private donor's gifts count as public support only up to 2% of the organization's total gifts, grants, and contributions. Contributions from governmental units and public charities receive different treatment.

A result between 10% and 33 1/3% needs review

A result in this range does not automatically fail Line 2a. The IRS may consider continuing efforts to attract public support and other signs that the organization operates as a publicly supported charity.

How the 509(a)(2) calculation works

Section 509(a)(2) can fit an organization supported by a combination of donations, qualifying membership fees, and payments for activities that further its exempt purpose. Qualifying program tuition or admission receipts may be considered alongside donations.

Insider and single-payer amounts need separate treatment

Possible insiders—such as founders, officers, directors, substantial contributors, certain family members, and related parties—may be “disqualified persons.” Their amounts may remain in total support but are excluded from the qualifying 509(a)(2) public-support amount. For another payer, program-related receipts count only up to the greater of $5,000 or 1% of total support for that year.

Both parts of the simplified test must pass

Line 2b requires at least 33 1/3% qualifying public support and less than 33 1/3% from investment income plus all revenue from unrelated activities. Ongoing Schedule A reporting uses a more detailed rule; later reporting may require that calculation.

Examples of how the comparison works

Public grant plus one large private gift

With a $40,000 government grant and a $60,000 private gift, only $2,000 of the private gift counts in the simplified 509(a)(1) numerator. The result is $42,000, or 42% of the $100,000 contribution total.

Program fees from many payers

A $10,000 private donation plus $60,000 in exempt-purpose fees from 12 unrelated payers may fit 509(a)(2), if no payer is a disqualified person and the investment-and-unrelated-revenue limit is met.

Funding from a founder

If a founder provides all $100,000, only $2,000 may count under the simplified 509(a)(1) donor limit, and the founder's support may be excluded from the 509(a)(2) numerator.

Both calculations pass

If all support is a qualifying government grant, both calculations may pass. Federal regulations give 509(a)(1) precedence.

Use the relevant five-year revenue period

Enter actual and reasonably anticipated revenue for the relevant five-year period. Keep tracking the mix after filing because actual figures matter for later-year qualification and a classification can change as revenue changes.

When individual review is needed

The finder returns an individual-review result for a possible unusual grant, uncertain disqualified-person status, unclear related revenue, or a possible state-or-municipal-college classification. If neither calculation fits, review possible private-foundation status and any revenue categories that may need correction.

Frequently asked questions

Do I choose 509(a)(1) or 509(a)(2) based only on my largest revenue source?

No. The calculations also consider who provided the support, whether funding is concentrated among a few donors or payers, possible insider amounts, investment income, unrelated-activity revenue, and the applicable five-year period.

What happens if both calculations pass?

Federal regulations give 509(a)(1) precedence. The finder shows both calculations and explains why the candidate result is 509(a)(1).

How should a new nonprofit estimate its support?

Include revenue already received and revenue the organization reasonably anticipates during its first five years. Keep the categories and assumptions available so you can compare them with actual results later.

Can the classification change later?

Yes. A classification can change when the types, sources, or amounts of revenue change. Continue tracking the organization's support mix after filing.

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Begin at the first questionnaire step. Any carried candidate remains subject to your confirmation.

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