Chapter 3 Section 3: Exempt Organizations

Question 1

What is the most common type of Exempt Organization?

What is it?

Answer 1

501(c)(3)

It has community things and operates for religious, charitable, scientific, etc purposes

Question 2

What can a 501(c)(3) not do?

Answer 2

A substantial part of their activities cannot be non-exempt in nature
Cannot intervene in political campaigns

Question 3

What is a 509 Private Foundation?

Answer 3

Includes 501(c)(3) other than specific exclusions

Question 4

What is the required return for a 509 Private Foundation?

Answer 4

Annual Form 990-PF

Question 5

Define Unrelated Business Income

Answer 5

Gross income from any unrelated trade or business regularly carried on, less related deductions. It is not substantially related to their tax-exempt purpose

Question 6

What is the deduction on UBI?

Answer 6

$1,000 from UBI

Question 7

What is the required return for UBI?

Answer 7

Annual Form 990

Question 8

What are the organizations that do not have to file a 990?

50,000 CHRIST

Answer 8

50,000 or less in gross receipts
Church
High School - religious
Religious Order
Internally Supported Auxillaries
Societies - missionary related
Tax-Exempt Organizations by Congress