Public charity status: can the organization pass the test?

To function properly, a parent corporation for a tax-exempt organization, such as a hospital, must obtain public charity status. The parent corporation can qualify as a public charity under one of four basic forms--the most common of which is the supporting organization. A parent corporation qualifies as a supporting organization using one of three tests. Unfortunately, none of these tests completely prove the parent corporation's status, so all must be considered with a careful eye. This article is the second in a three-part series analyzing new and important IRS developments affecting tax-exempt hospitals.