KPMG report: Supporting organizations

KPMG report: Supporting organizations

All tax-exempt organizations described in section 501(c)(3) are either private foundations or public charities. By default, these organizations are private foundations unless they qualify as public charities described in section 509(a)(1), (2), (3), or (4).

Related content

“Supporting organizations” do not have to be formed for a particular charitable purpose or have to raise a certain amount of public support. Instead, these organizations qualify as public charities because they support the exempt activities of other public charities. Absent this relationship with an existing public charity, supporting organizations generally would be treated as private foundations.

While the future of supporting organizations remains uncertain, with careful attention to governance relationships, organizational structure, operational activities, and procedural rules, operating as a supporting organization can continue to serve as an option for certain types of organizations seeking public charity classification.


Read a January 2016 report [PDF 175 KB] prepared by KPMG LLP: Supporting organizations in the spotlight

© 2016 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal



KPMG's new digital platform

KPMG's new digital platform