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> They are registered as a 501(c)(3) which is what people commonly call a public charity.

TIL "public charity" is specific legal term that only some 501(c)(3) qualify as. To do so there are additional restrictions, including around governance and a requirement that a significant amount of funding come from small donors other charities or the government. In exchange a public charity has higher tax deductible giving limits for donors.




Important to note here that most large individual contributions are made through a DAF or donor-advised fund, which counts as a public source in the support test. This helps donors maximize their tax incentives and prevents the charity from tipping into private foundation status.




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