How do I know if an organization qualifies as an institution of purely public charity?

This is a difficult question. However, in a 1975 court case, Northstar Research Institute vs. County of Hennepin, the Minnesota Supreme Court established five factors that are often cited as guidelines for determining if an organization qualifies as an institution of purely public charity. These five factors have been expanded to six and have since been referred to as the Northstar Factors.

  • Whether the stated purpose of the undertaking is to be helpful to others without immediate expectation of material reward.
  • Whether the entity involved is supported by donations and gifts in whole or in part.
  • Whether the recipients of the "charity" are required to pay for the assistance received in whole or in part.
  • Whether the income received from gifts and donations and charges to users produces a profit to the charitable institution.
  • Whether the beneficiaries of the charity are restricted or unrestricted and, if restricted, whether the class of persons to whom the charity is made available is one having a reasonable relationship to the charitable objectives and,
  • Whether the dividends, in form or substance or assets upon dissolution, are available to private interest.

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1. What kind of property may be eligible for a property tax exemption?
2. How do I know if an organization qualifies as an institution of purely public charity?
3. How do I apply for a property tax exemption?
4. When does a property tax exemption begin?
5. When does a property tax exemption end?
6. Are all parcels owned by the same entity exempt from paying property taxes?
7. Is there a cost to file for a property tax exemption?
8. Can I be assured of receiving a property tax exemption?
9. How long does it take to process an exempt application?
10. What happens if my request for a property tax exemption is not approved?