Public Charity

In general, an organization which is tax exempt under Code section 501(c)(3) and is classified by IRS as a public charity and not a private foundation. Public charities generally derive their funding or support primarily from the general public in carrying out their social, educational, religious, or other charitable activities serving the common welfare. Some public charities engage in grant-making activities, though most engage in direct service or other tax-exempt activities. Public charities are eligible for maximum income tax-deductible contributions from the public and are not subject to the same rules and restrictions as private foundations. Some are also referred to as "public foundations" or "publicly supported organizations" and may use the term "foundation" in their names. (See also Private Foundation)