What is a Supporting Organization?
A supporting organization is a specific type of public charity. All 501(c)(3) organizations are considered private foundations unless they qualify as public charities. It can be to a nonprofit’s advantage to be a public charity; private foundations are more closely scrutinized, regulated, and taxed than public charities. The thinking that underpins this regulatory framework is that the donating public will “discipline” public charities far more efficiently than government oversight can…