A public support test is a tool used by the IRS to determine if a charitable organization is a public charity, i.e. a 501(c)(3). If the charity receives at least a third of its revenue from “the public,” it passes the public support test. The public here means regular people, the government, and foundations as opposed to a few powerful individuals or corporations.
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A Public Support Test is…
Friday, August 21st, 2009A Tariff is…
Friday, August 21st, 2009A tariff is a tax placed on imports.
A Retailer is…
Friday, August 21st, 2009A retailer is a person or organization (often a store) that sells commodities or products (aka things you want to buy) directly to the public, rather than to other companies for resale. For example, Target and Amazon are retailers, because they sell products directly to you for your personal use or consumption.
A Buyout is…
Friday, August 21st, 2009A buyout is when a person or company buys the majority of shares, i.e. a controlling interest, in another company. This means they control the majority of votes at the annual meeting, can impact the board of directors, and influence other company decisions.
Fixed Interest is…
Friday, August 21st, 2009Fixed interest is a classification that refers to any financial instrument in which the interest rate does not fluctuate or is not variable. For example, a bond’s price may change but the interest rate remains the same throughout the life of the bond.
Two and Twenty is…
Friday, August 21st, 2009Two and twenty is a typical fee structure of hedge funds, or other alternative investment vehicles, where the annual management fee is 2% of assets and there is also a performance fee of 20% of investment returns.
A Time Deposit is…
Friday, August 21st, 2009A time deposit is a type of savings account from which you cannot withdraw funds before a specified date or without giving written notice of your intention to take out money. To compensate for this drawback, time deposits usually offer high rates of interest and extremely low risk.
A CD is…
Friday, August 21st, 2009A CD is a Certificate of Deposit, which is basically a savings account with a higher interest rate. In return for the higher rate, you aren’t allowed to touch your money for a set period of time. In general, shorter periods of time (like three months) have lower interest rates, while the longer time periods have much higher ones.
An Expense Ratio is…
Friday, August 21st, 2009An expense ratio, in the context of mutual fund investing, is a measure of how much it costs a financial institution to manage a mutual fund for every dollar it manages. If management of the fund costs $1 for every $100 managed, the expense ratio is 1%. This ratio is important to look at if you want to invest in a mutual fund, because higher expense ratios can eat into your returns. An expense ratio can also relate to the amount of money a company spends to produce $1 of revenue.