What is equivalency determination?

Equivalency determination (ED) is a process by which a U.S. grantmaker evaluates whether an intended foreign grantee is the equivalent of a U.S. public charity. The grantmaker must collect a set of detailed information about the grantee’s operations and finances and make a reasonable determination of its equivalency.

How long is an equivalency determination good for?

two years
How long is an Equivalency Determination valid? EDs are valid for up to two years. Specifically, the ED is valid two years from the end of the last accounting period for which financial information is received.

What is an expenditure responsibility Grant?

Expenditure responsibility requires that a grant to an organization that has non-charitable activities be made for specific charitable projects, programs, or activities, rather than general or operating support.

What is a 509 A )( 1 organization?

The IRS defines a 509(a)(1) as: an organization that receives a substantial part of its financial support in the form of contributions from publicly supported organizations, from a governmental unit, or from the general public.

Can a private operating foundation make grants?

Yes. Private foundations typically make grants (i.e., give funds) to public charities, although they sometimes conduct their own charitable activities.

What is the difference between a 501c3 and a 509?

509(a)(1): What’s the Difference? Simply put, a 509a1 is a specific type of 501c3. The IRS notes that 501(c)(3) organizations are either private foundations or public charities. A 509(a)(1) is one type of public charity.

What is Section 509 A 2?

By contrast, organizations described in section 509(a)(2) of the Code are publicly supported organizations that receive more than one-third of their financial support from contributions, membership fees and gross receipts from activities related to their exempt functions, and no more than one-third of their financial …

Do private operating foundations pay taxes?

More In File These foundations generally are still subject to the tax on net investment income and to the other requirements and restrictions that generally apply to private foundation activity. However, operating foundations are not subject to the excise tax on failure to distribute income.