How to use this tool
Enter totals for your five-year period: the current tax year and the four before it. The tool follows the layout of Schedule A (Form 990), Part II.
- Gifts, grants and contributions, including membership fees that are really donations rather than payments for admission or services.
- Government support: tax revenues levied for you and the value of services or facilities a government unit gave you free.
- Investment income: interest, dividends, rents and royalties.
- Net unrelated business income and other income.
- Large donors: list each individual, company, trust or private foundation whose five-year total may exceed 2% of your total support. Mark gifts from government units and publicly supported charities separately, because the 2% limit does not apply to them.
Program revenue, such as ticket sales or fees for services you provide as part of your mission, is entered separately. It is left out of both sides of the fraction.
The rule behind it
A public charity is a 501(c)(3) organization that is not a private foundation. One way to qualify is to be "publicly supported" under IRC 509(a)(1) and 170(b)(1)(A)(vi). Treasury Regulation 1.170A-9(f) sets the tests.
Total support is the sum of gifts, grants and contributions, government support, investment income, net unrelated business income and other income. Program revenue and unusual grants are excluded.
The 2% limit. Contributions from any one individual, trust or corporation count as public support only up to 2% of total support for the five-year period (Reg. 1.170A-9(f)(6)(i)). Gifts from a donor and certain related persons, such as a spouse, are combined. The full gift stays in total support; only the amount over 2% drops out of public support. Support from government units and from other 170(b)(1)(A)(vi) organizations is not limited, unless it is earmarked pass-through money from another donor.
The thresholds.
- 33⅓% or more: you meet the public support test for this year and next (Reg. 1.170A-9(f)(2) and (f)(4)(i)).
- At least 10% but under 33⅓%: you may qualify under the facts-and-circumstances test if you also run a continuous, bona fide program to attract public support and meet the other factors in Reg. 1.170A-9(f)(3).
- Under 10%: you do not qualify under this test. Check the 509(a)(2) test on Schedule A, Part III, which counts program revenue, before concluding you are a private foundation.
First five years. A new organization meets the test for its first five tax years as a 501(c)(3) if it can reasonably be expected to (Reg. 1.170A-9(f)(4)(v)). The Schedule A instructions tell you to check the line 13 box in those years and to track your percentage on your own copy so you are ready for year six. See public charity vs. private foundation.
Worked example
A hypothetical food pantry reports these five-year totals:
| Source | Amount |
|---|---|
| Many small donors (none over $4,880) | $60,000 |
| Founder | $110,000 |
| Family private foundation | $40,000 |
| Community foundation (a publicly supported charity) | $20,000 |
| County grant | $10,000 |
| Investment income | $4,000 |
| Total support | $244,000 |
- 2% limit: 2% × $244,000 = $4,880.
- Founder's excess: $110,000 − $4,880 = $105,120.
- Family foundation's excess: $40,000 − $4,880 = $35,120.
- Public support: $240,000 in gifts and grants − $140,240 in excess = $99,760.
- Public support percentage: $99,760 ÷ $244,000 = 40.89%.
Before the 2% limit, contributions were 98.36% of support. After it, the pantry still clears 33⅓%, but a few more years of founder-heavy giving could push it under.
What this tool does not cover
The calculator does not decide whether a grant is "unusual" and may be excluded, apply the facts-and-circumstances factors, or run the 509(a)(2) test. It also cannot classify government payments, which are contributions when they mainly benefit the public and program revenue when they buy services for the government. The Form 990 side of this calculation is covered at 990IRS.com's Schedule A guide, and our annual compliance service can track it with you.
Frequently asked questions
Do gifts from other charities count in full?
Grants from publicly supported charities under 170(b)(1)(A)(vi) and from government units are not subject to the 2% limit. Grants from private foundations are, just like gifts from individuals.
What happens if we fall below 33⅓%?
If you are at 10% or more and meet the facts-and-circumstances test, you remain publicly supported. Otherwise, the Schedule A instructions say you are treated as a private foundation for filing purposes unless you qualify under another public charity test.
Do we have to calculate this during our first five years?
Not on your Form 990. The instructions tell new organizations to check the line 13 box and stop, but to monitor their percentage privately so year six holds no surprises.
Are volunteer hours counted as support?
No. Donated services for which no deduction is allowed are excluded from support (Reg. 1.170A-9(f)(7)).
Sources
- eCFR: 26 CFR 1.170A-9, Definition of section 170(b)(1)(A) organization. ecfr.gov
- IRS: 2025 Instructions for Schedule A (Form 990). irs.gov
- IRS: Publication 557, Tax-Exempt Status for Your Organization (Rev. January 2025). irs.gov
- Cornell LII: 26 U.S. Code § 509. law.cornell.edu
IRS forms, fees and inflation-adjusted amounts change. We review this page when the IRS publishes new instructions.
501Nonprofit.com is a private company, not the IRS. This page is general information, not legal or tax advice for your organization. Example organizations and figures are hypothetical.