Public Support Test Modeling
Hello all!
We're having a bit of a niche problem and wondering if anyone has insights on software or resources. My team works for an individual funder who is also associated with a Private Family Foundation. We regularly encounter situations in which funding from both entities could cause a grantee to "tip" into private operating foundation status due to no longer passing the Public Support Test with over 2% of funding coming from our private entities.
Has anyone else encountered this problem and been able to utilize a specific model that assists in determining funding caps? Is it something you've been able to achieve in Foundant? Thank you so much!
Answers
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Hi Fiona! Are these organizations reaching out to the foundation to let them know they can only accept a gift of $xxx.00?
You could set up a specific report to track the amount of funding for your organizations throughout the year if you knew what number you are tracking toward.
Curious to see if others have encountered this, I will keep an eye on replies.
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Hi @KatieDecker !
Organizations typically don't know a specific dollar amount of funding that they can accept a gift of to prevent tipping. The test is funky and calculates a percentage of the total support over 5 years that must be less than 2% to still qualify as a public charity. So that "target number" to gift under fluctuates really easily based on any kind of giving!
I think that a reporting function could allow organizations to tell us total funding from our entities over a multi-year period would be a good way to assist in calculation for sure.
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