Chapter 13 Flashcards
Private foundation
An organization exempt from federal income taxes under IRC Sec. 501(a) that (1) receives its support from a small number of individuals or corporations and investment income rather than from the public at large and (2) exists to make grants to public charities.
Public charity
An organization exempt from taxes under IRC Sec. 501(a) that receives its support from the public at large rather than from a limited number of donors. Most often public charities are exempt from federal income taxes under IRC Sec. 501(c)(3).
By laws
private/rules and regulation of governance
List some regulations over NFO
Application to operate under an assumed name
Application to incorporate as a NFO or LLC
Annual compliance testing
Does the state recognize you as NFP or Federal
NFP
T/F does NFP have to pay employment taxes
Yes
How is the Public support test met:
is met if NFP receives 1/3 of its total support from investments, contributions made directly or indirectly by the general public or some combination
Not for profit organization
are defined as entities who serve a purpose other than to provide goods or services at a profit, do not have owners and rely on contributed resources.
Charitable solicitation
Indirect or direct request for money, credit, property, financial assistance or other items of value on the representation that these assets will be used for a charitable purpose.
What taxes are NFP’s exempt from?
sales tax, real or personal property, transfer, employment, or excise tax.
Influencing
promote, support, affect, modify, oppose or delay
Organizational test
articles of incorporation limit the organizations purpose to those described in IRC Sec 501 and do not empower it to engage in activities that are not in furtherance of those purposes.
Quid pro quo
contribution made in exchange for goods and services
Federated fund raising organization
an organization composed of independent charitable organizations that have voluntarily joined together to raise and distribute money among themselves.
What amount is the individual contribution limited to:
only the amount up to 2 percent of the total support can be counted toward public support (numerator)
Political organizations
are political action committees, political parties, and campaign committees for candidates for government office.
Propaganda
information that is skewed toward a particular belief with a tendency to have little or no factual basis.
Legislation
establishes laws, statutes and ordinances
What is the primary tool that the federal government uses to collect information about the NFP and its activities.
Form 990
Unrelated business income
which assesses tax at corporate rates on income that NFPs derive from activities not substantially related to their charitable or tax-exempt mission.
feeder organization
formed to carry on a trade or business for the benefit of an exempt organization and remits its profits to the exempt organization.
grass roots lobbying
an appeal to the general public to contact legislators or to take other action regarding a legislative matter.
