How is an ED made?

An ED is based on a set of detailed information about the organization's operations and finance.  Specifically, a non-U.S. organization is deemed equivalent to a U.S. public charity if it meets this three prong test:

  1. It is organized like a U.S. public charity;
  2. It is operated like a U.S. public charity; and
  3. It meets certain minimum public support requirements (if required).

For more information on these concepts, see our LegalEASE blog.