Understanding Public Foundation Status: Why Community Support Matters
At Parikh Giving Alliance we are deeply committed to creating lasting change in Central Florida through community-driven initiatives in healthcare, education, and the arts. As a public foundation, we are not only driven by our mission but also by the legal requirements that help shape our work. One of the most important aspects of maintaining our status as a public foundation is ensuring that a significant portion of our support comes from the public.
What Does It Mean to Be a Public Foundation?
A public foundation, often classified as a public charity under IRS regulations, is a nonprofit organization that primarily relies on public support rather than funding from a small group of donors. This designation allows us to maintain a tax-exempt status while promoting widespread community involvement and support.
The Public Support Test
To maintain our status as a public foundation, we must meet specific IRS requirements, known as the public support tests. These regulations ensure that the majority of our funding comes from a diverse group of donors rather than a small number of private sources. Here’s how it works:
One-Third Support Test: At least one-third of our total support must come from the general public, including individual donations, government grants, or other public sources.
Ten-Percent Facts and Circumstances Test: If we do not meet the one-third threshold, we can still qualify if we receive at least 10% of our support from public sources and can demonstrate that we serve a broad public interest.
Why Public Support Matters
Maintaining our public foundation status is not just a legal requirement - it's a reflection
of our commitment to the community. Public support demonstrates that our work resonates with individuals and organizations who believe in our mission. Additionally, by maintaining a diverse funding base, we are better equipped to respond to the evolving needs of the community.
How You Can Help
Your your contribution to the Parikh Giving Alliance directly impacts our ability to maintain our public foundation status. By donating, you are not only supporting transformative programs but also helping us continue our work without interruption. Every dollar counts, and your support ensures that we can keep fostering collaboration, addressing pressing needs, and building a community where everyone has the opportunity to thrive.
Thank you for being a part of our journey. Your support helps turn ideas into action, dreams into reality, and challenges into opportunities. Together, we are building a brighter future for Central Florida.