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Ezel / IRS Rulings / 201621016
Determination Letter 201621016 Released May 20, 2016 Approved Transcribed from scan

Public charity recognized as a section 4945(f) exempt operating foundation

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This page covers one taxpayer's ruling from 2016, which can't be cited as precedent. Ezel answers your situation under the current Code and IRS guidance, with citations.

Currency note: this determination was released in 2016
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It resolved one taxpayer's situation on its specific facts, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
Transcribed from a scanned original: the IRS released this determination as an image-only PDF. The full text below is a machine transcription, proofread against the scan. Check the original PDF before quoting exact language.
View official IRS release (PDF)

Plain-English summary

An organization already recognized as a section 501(c)(3) public charity asked to be recognized under section 4945(f). Based on the supplied information and the organization’s proposed operations, the IRS determined that it qualified as an exempt operating foundation under that section. As long as it continues to meet section 4945(f), grants made to it by private foundations will not be taxable expenditures under sections 4945(d)(2) or 4945(d)(4).

Ruling snapshot

  • Question: Does the public charity qualify as an exempt operating foundation under § 4945(f)?
  • Outcome: Approved.
  • Key authorities: IRC §§ 170(b)(1)(A)(vi), 501(c)(3), 509(a)(1), 4945(d), 4945(f).

Full text (IRS public release)

Internal Revenue Service Department of the Treasury
P. O. Box 2508
Cincinnati, OH 45201

Release Number: 201621016

Date: 5/20/2016

Date: February 25, 2016

UIL Code: 50103-08 Person to Contact - ID#:

Contact Telephone Numbers:

Employer Identification Number:

Dear

This letter is in response to your request to be recognized as an organization described
in section 4945(f) of the Internal Revenue Code.

The Internal Revenue Service has recognized you as an organization exempt from
federal income tax under section 501(a) of the Code because you are an organization
described in section 501(c)(3). In addition, you are not a private foundation because you
are described in section(s) 509(a)(1) and 170(b)(1)(A)(vi) of the Code.

Based upon the information supplied, and assuming your operations will be as stated in
your request, we've determined that you are an organization described in section
4945(f) of the Code. Grants made to you by private foundations will not be treated as
taxable expenditures under sections 4945(d)(2) or 4945(d)(4) of the Code as long as
you are described in section 4945(f).

If you have any questions regarding this matter, please contact the person whose name
and telephone number are shown in the heading of this letter.

Sincerely,

Jeffrey I. Cooper
Director, Exempt Organizations
Rulings and Agreements

Letter 4778 (3-2012)
Catalog Number 58221N

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