Section 509 A 3
What does it mean to have a 509 a status.
Section 509 a 3. Organizations that are classified as 501 c 3 tax exempt status are further classified by the government as one of five types under section 509 a of the internal revenue code. They receive public charity status because of the relationship without regard to the source of their income. If a supporting organization does not meet the organizational test it is not qualified under irc 509 a 3.
For purposes of section 509 a 3 b iii of the internal revenue code of 1986 an organization which is a trust shall not be considered to be operated in connection with any organization described in paragraph 1 or 2 of section 509 a of such code solely because. The 509 a 3 test rules for being a supporting organization internal revenue code section sec 509 describes the various tests for a section 501 c 3 organization to be classified as a public charity. Code section 4943 excess business holdings rules apply to certain supporting organizations.
Skip to main content an official website of the united states government. A 509 a 3 supporting organization is a unique version of 501 c 3 that is established to directly support another charity and is subordinate to it. Discussion of abusive tax avoidance transactions involving section 509 a 3 supporting organizations.