# Enrolled Agent Exam [Part 2] 87, Section 501(c)(3) — Public Charity vs Private Foundation

Page: https://stenobird.com/podcast/finance-exam-prep-7658413/enrolled-agent-exam-part-2-87-section-501-c-3-public-charity-vs-private-foundation
Text version: https://stenobird.com/podcast/finance-exam-prep-7658413/enrolled-agent-exam-part-2-87-section-501-c-3-public-charity-vs-private-foundation.md
Podcast: [Finance Exam Prep](https://stenobird.com/podcast/finance-exam-prep-7658413)
Published: 2026-07-23T22:41:20+00:00
Episode link: https://open-exam-prep.com/
Audio file: https://episodes.captivate.fm/episode/48f8429c-dc4d-4376-82d1-0f556f302e56.mp3
Processing state: not_requested
JSON: https://stenobird.com/v1/public/podcasts/finance-exam-prep-7658413/episodes/enrolled-agent-exam-part-2-87-section-501-c-3-public-charity-vs-private-foundation
Duration seconds: 198

## Resource

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - That all 501(c)(3) organizations are considered private foundations by default unless they can prove they qualify for public charity status. - Which types of organizations, such as churches, schools, and hospitals, are automatically classified as public charities. - How the one-third public support test is used to determine if an organization qualifies as a public charity based on its funding sources. - The key operational differences, including the 1.39% excise tax on net investment income that applies only to private foundations. - The 5% minimum annual distribution requirement that private foundations must meet to avoid significant penalties. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep

## Actions

- request_transcript: `POST https://stenobird.com/v1/public/podcasts/finance-exam-prep-7658413/episodes/enrolled-agent-exam-part-2-87-section-501-c-3-public-charity-vs-private-foundation/transcription-requests` — Idempotently request low-priority transcript generation for this episode.
- read_markdown: `GET https://stenobird.com/podcast/finance-exam-prep-7658413/enrolled-agent-exam-part-2-87-section-501-c-3-public-charity-vs-private-foundation.md` — Read the agent-friendly Markdown representation of this episode resource.

A page view does not enqueue transcription. Agents should invoke `request_transcript` explicitly when they need this episode processed.

## Transcript

Full transcripts are not published on public pages unless there is a clear rights basis.