Qualified Charitable Organization
Definition of 'Qualified Charitable Organization'
There are many different types of QCOs, including:
* Public charities: These organizations receive most of their funding from the general public and are not controlled by a small group of individuals. They must meet certain requirements in order to maintain their public charity status, such as providing a public benefit and having a board of directors that is elected by the public.
* Private foundations: These organizations are funded by a single individual or family, or by a small group of individuals. They must meet certain requirements in order to maintain their private foundation status, such as distributing at least 5% of their assets each year to charitable purposes.
* Supporting organizations: These organizations support other charities by providing them with funding, staffing, or other resources. They must meet certain requirements in order to maintain their supporting organization status, such as being controlled by the supported organization and having a board of directors that is composed of representatives of the supported organization.
QCOs play an important role in the U.S. economy. They provide funding for a wide variety of charitable activities, such as education, healthcare, and social services. They also help to promote volunteerism and civic engagement.
If you are considering making a charitable donation, it is important to make sure that the organization you are donating to is a QCO. You can do this by checking the IRS website or by asking the organization for a copy of their tax exemption letter.
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