[Foundation-l] Update of the Gift Policy

[Gregory Maxwell]

On Jan 21, 2008 9:20 AM, Gerard Meijssen <gerard.meijssen at gmail.com> wrote:
> Hoi,
> I am sorry I do not understand. What is an "applicable tests for public
> support". Why are donations from other charities exempt.

I believe this would be referring to US tax code,  I could link to the
applicable rules but you'd never figure them out. This site is easier
to understand:  http://www.sharinglaw.net/npo/PublicSupportTest.htm

Basically if a donor gives more than 2% of your income the portion of
that donors donations over 2% are treated as business income (like
selling t-shirts), rather than public support (donations).

Part of the reason for the existence of this rule is keeping
non-profits from being a front for private interests while still
enjoying tax-exempt status.  Monies from government sources, and other
qualifying non-profits are considered automatically to be public
support by the nature or their source.

I've brought up concerns related to public support (e.g.
http://lists.wikimedia.org/pipermail/wikien-l/2007-October/084183.html),
and excessive influence from large donors (e.g.
http://lists.wikimedia.org/pipermail/wikien-l/2007-October/084251.html)
in the past and I am thrilled to see the foundation doing something to
address this area.